Tesla Motors Case Study. As Pressure Increases The Need

As the EV and HEV trend strengthens, key industry players are offering models that directly compete with Tesla. Competing models include the Chevy Volt and Spark, Nissan Leaf, Toyota Prius, Ford Focus, Honda Fit, Smart Car, Volkswagen Golf, BMW i3, and Mercedes Benz B-class EV (Grant, 2015). However, Elon Musk does not view these offerings as Tesla’s competition. With only 1% of total vehicle sales going to non-hydrocarbon burning cars, Musk identifies Tesla’s true competition as the gasoline cars with production rates of about 100 million per year (Musk 2014).

Tesla Motors, Inc. is an American company that was founded in 2003. The driving idea behind the venture was proving electric vehicles could be a viable substitute of the gasoline powered cars without sacrificing comfort, performance or luxury. Apart from the core function of designing and producing electric cars, Tesla also provides advance electric vehicle powertrain components and know-how to other automakers, which are looking into venturing in the EV (electric vehicles) market, such as Daimler, Toyota and others. The company’s headquarters are located in Palo Alto, California. Due to their specific business and marketing model, namely, no middle-man and little-to-no mass scale

Opportunity: For the overall electric automotive industry and Tesla, they should improve its financial performance through government incentives to alleviate the problem of carbon emissions from its car models.

The paper provides a summary of Tesla Motors, the company outlined. Explaining the relationship between cost-volume-profit analysis is discussed as well as how the company is using this tool to maximize production and profit.

The car market has been ran by companies such as Volkswagen, Toyota, Ford, BMW, and many other companies, but one of the newer, up and coming companies in this market is Tesla Motors Inc. Tesla has been around for a little over 10 years, and have come quite a long way from where they began. Tesla now sells luxury electric vehicles different than any other electric vehicles today, and they have big plans for expansion in the future. Tesla may not be one of the biggest car companies today, but one day they will be considered alongside companies such as Toyota and Ford.

Tesla electric vehicles from Tesla Motors are gaining a reputation as the cars of the future. These models are not only known for their luxury features, acceleration, power, and nearly silent electric engines, but also for their green appeal. Individuals who can afford the hefty price tag are purchasing these vehicles because they are classy, fun to drive, and better for the environment than the standard gasoline car. Tesla Motors are leading the way in innovation in the American car industry with their Tesla electric models.

The source of Tesla’s competitive advantage comes from its ability on using an existing technology in an efficient way. Electric vehicle technology is in existence for a long time but no one was willing to take the risk of using it. So, Tesla took the risk and distinguished themselves from other carmakers in the industry by revolutionizing its main component, the lithium-ion batteries. They made the battery more efficient, so it can hold the charge longer and provide better mileage. It much improved compared to conventional hybrid or plug-in based electric vehicles.

Tesla Motors Incorporated, an American company that designs, produces, and sells electric vehicles and their electric components, has become one of the fastest growing car companies in recent history. The company’s main goal was to start creating electric vehicles that were accessible and affordable to the public. Founded in 2003 and taking off successfully by 2009, Tesla Motors started selling the first mass-produced vehicle to use lithium-ion battery cells and hold a range of greater than 200 miles on just one charge. Along with building their own electric vehicle models, Tesla also builds electric powertrain components for vehicles from other automakers including cars such as the Toyota RAV4 electric vehicle. Tesla has begun to maximize

The case study about TESLA was very insightful in the relentless quest for innovation and redefining the world’s transition to sustainable energy. It is inexplicable at times to understand the current policies of our administration such as the US withdrawal from Paris climate agreement. However the road has been paved for the investment in renewable energy and we now see more and more world governments, global commerce and transnational industry are embarking on a plan to

One of the most interesting aspects of Tesla, the niche market luxury electric car maker, is the style in which Tesla markets selling its electric cars that cost approximately $100,000. Many companies have attempted to change the car buying process in the auto industry over the last 40 years, with little success. The process of purchasing a car is fundamentally the same as it was a generation ago. Additionally, the traditional process remains unpopular today as it has been for decades. In order to take advantage of an opportunity to develop a new car buying process, Tesla is using marketing that is revolutionizing the business model in the way cars are sold.

At its inception in 2003, Tesla Motors, Inc. was forged by like-minded engineers motivated by the vanguard technology of electric vehicles in the modern world. Following the work of Nikola Tesla in the late 1800’s, their first

Tesla Motors is focused on differentiation strategy, offering electric vehicles to a Premium market with no other comparable alternatives (Tesla Roadster was the first electric sport vehicle in the world), disrupting the market with a high reliability and performance EV (see Exhibit 2 ) coupled with features enhancing customer satisfaction of those customers looking for style and design in an EV. The R&D department is particularly important in order to drive down the costs. The sale of each Tesla car helps to pay for the development of a new and more affordable electrical vehicle, reaching the final objective of create an affordable mass-market of electrical vehicles.

windfall has been the cash payments it extracts from rival car makers (and their customers), via its sale

In an industry that requires large amounts of capital, Tesla is faced with the problem of figuring out how to create and maintain a sustainable competitive advantage with its electric vehicles while considering the limited amount of infrastructure they currently obtain.

As an automobile manufacturer, Tesla is subject to complex challenges. Sustainability comes in many forms, Tesla’s first and foremost will be sustaining its own business. The government action of fully supporting the electric vehicles will open mainstream manufacturers like GM, Toyota, Volkswagen, and Daimler AG to increase spending in research and development for models such as hybrids, plug-ins and pure battery electric vehicles to their portfolio of vehicles. Moreover, competition will increase substantially, by the government