Essay on Tesla Motors

Tesla Motors was founded in 2003 by a group of engineers in Silicon Valley that wanted to prove to the world that electric cars were the cars of the future (Tesla Motors, Inc, n.d.-a). The goal of Tesla Motors was to make electric vehicles that had instant torque, incredible power, and zero emission (Tesla Motors, Inc, n.d.-a). Tesla Motors engineers first began designing a powertrain sports car built around an AC induction motor, patented in 1888 by Nikola Tesla, the inventor who inspired the company’s name (Tesla Motors, Inc, n.d.-a).

Tesla Motors, Inc. was founded In 2003 by Elon Musk, Martin Eberhard, Marc Tarpenning, JB Straubel and Ian Wright. The name Tesla came from the engineer and physicist Nikola Tesla. Tesla designs, develops, manufactures, sells advanced electric vehicles and electric car components In the United States and internationally. It also develops electric components and electrical systems for other automotive companies.Tesla started to get the attention of the world when they produced the first electric sports vehicle, The Roadster, based at a price of $109,000 dollars In 2008. Between the years of 2008 and 2012, Tesla sold 2,250 Roadsters. Tesla has stopped all production on the Roadster since then to focus on advancing the company to more the average consumer. Next, came the Model S, an electric luxury sedan which debuted In the United States In 2012 and Is American made In California. The Model S, base priced at $57,000 dollars, was the first of It’s kind bringing the luxury of a Mercedes-Benz and combining It with a electric battery to give you 208 to 315 battery miles without refueling or charging. The Model S Is the second-best-selling plug-in electric vehicle behind the Nissan Leaf. Tesla decided to go ahead and develop the first electric SUV, called the Model X In 2015. In march of 2016 Tesla revealed It’s next car, called the Model 3. The Model 3 Is only going to cost consumers $35,000 and Is on track to be released In 2018. Only one week after Tesla announced the Model 3,

Cost-volume-profit (CVP) analysis will help with the mangers make important decisions such as what products and services to give for offer, what prices to charge, what marketing strategy to the farmers, and what cost structure to maintain they have to do.

5. CVP analyses helps to understand how profit is affected by the relations among revenue, cost and volume. The decisions on ticket pricing, volume being sold, incurring a cost impact on desired profit. So, CVP analyses helps to determine how many tickets and at what average price the

Tesla Motors was established in 2003 by entrepreneurs Martin Eberhard and Marc Tarpenning. Today, Tesla Motors provides power train components for car producers, including Daimler and Toyota, designs and manufactures Model S, the first world ‘s premium zero-emission sedan that became the third best-selling all-electric car in the U.S. The company is worth more than $25 billion and has one of the highest growth rate in U.S. This success of the company is contributed to Elon Musk, the CEO and Product Architect of Tesla (Tesla, 2014), who has a very strong vision of company’s future.

Develop a business model for Tesla, indicating future sales and profitability; what is your assessment of Tesla’s long-term success?

As a young automotive company, Tesla Motors, Inc. exhibits a list of strengths that has made the company successful with manufacturing and selling of their luxury electric vehicles (Eisler, 2016, p. 35). Tesla Motors, Inc. has a technological advantage in the battery market industry with their partnership with Panasonic. Panasonic and Tesla collaborated in the development of the Gigafactory, which “is designed to churn out cells for battery electric vehicles (BEVs) with a combined energy storage capacity of 35 GWh per year – more than the total energy storage capacity of lithium-ion batteries produced worldwide in 2013” (Martin, 2014, p. 327). With the large capacity batteries, Tesla BEV’s driving range are incomparable to other competitor’s hybrid or electric plug-in vehicles.

Tesla’s business model stands as to abandon the gasoline driven vehicles and change the face of motoring forever. They believe that being the first of its kind, electric powered cars are the face of the future. A business model they publically released on Feburary 14th, 2012 is the following.

Tesla Motors Inc. is preparing for its Toronto debut in January 2010. Tesla wants to create preorder sales for its debut. The company wants to position its vehicles as viable alternatives to

Tesla Motors is an American automaker and vitality stockpiling organization named after renowned Nikola Tesla, the engineer, innovator and physicist. The company was established in 2003 by Elon Musk, Martin Eberhard and Marc Tarpenning. It is situated in Palo Alto, California. Their primary auto production from 2008 being Tesla Roadster, the second vehicle, the Model S, an electric extravagance car, appeared in 2012 and is worked at the Tesla Factory in California. Worldwide deals for the Model S passed the 100,000 units point of reference in December 2015, three and a half years after its presentation, and it was the world 's smash hit in that year. As of June 2016, the Model S positioned as the world 's record-breaking second-top rated module after the Nissan Leaf and it was the US best seller of electric cars in 2015. The auto was then trailed by the Model X, a hybrid SUV. Tesla 's next vehicle, Model 3 is scheduled for release in 2017 with a starting cost at US$ 35,000 which will be the most affordable model yet. Amid the year 2016, Tesla Motors sold about 164,000 electric autos overall after the conveyance of its first Tesla Roadster in 2008, making the electric carmaker the second biggest worldwide module auto producer after the Alliance. Elon Musk, the CEO, said that the organization, as an autonomous automaker, wants to offer electric autos at costs that are moderate to all buyers. Tesla’s US car market share in November 2016 was 0,3%. Their revenue has grown from

Another key element of Tesla Motor’s Strategy is the technology and product development that they put into designing their products. According to the text, since Tesla has been founded, over $900 million has been spent on R&D activities to develop the best version of their product. They have also invested time in researching battery packs, power electronics, induction motors, gearbox’s, and control software (Arthur, 2015).

Tesla Motors was founded way back in 2003 by five entrepreneurs. Tesla Motors manufactures and designs premium eclectic cars. These five people came together to create a transition for the world in electric mobility. The five men were JB Straubel, Ian Writght, Elon Mush, Marc Tarpenning, and Martin Eberhard. The company was named after one of the engineers named Nikola Tesla. Musk once said that the most important problems worth studying were to make transportation environmentally friends and how to colonize another planet. As you can clearly tell he used that knowledge to start up Tesla Motors. Just like every company first starting out Tesla has some problems that they need to kink out before they continue to skyrock. These problems are quality, non-unionized workers, safety and finance.

Tesla Motors is a very unique automotive company in that it produces vehicles that are powered by electricity. This is a fairly new market and one more and more people are investing in. Each year, more and more people are purchasing vehicles that rely on electricity to operate, thus’ companies that produce such vehicles are generating income. Tesla, specifically, is making a lot more profit than they are losing with their variety of electric vehicles. Their stock, NASDAQ: TSLA, has had a steady increase since 2003 and continues to rise. It is currently at 214.93 USD per share and has risen by 1.61% today, 5/8/16, alone. According to fortune.com, Tesla made quarterly revenue that estimated $939.9 million in 2015 which was a gain of 52% over

CVP is cost, profit volume analysis. This is a simplified management accounting tool, which allows products to be assessed to determine the number of goods that would need to be sold at any singular pricing point (Drury, 2009). For any product, such as the tablet computers, that are manufactured there will be two types of costs; variable and fixed (Drury, 2009). The variable costs are the direct costs which are incurred for each unit of production, such as the materials. These costs will vary on the number of units produced as the costs are only incurred as the production takes place. The fixed costs, also be referred to as overhead costs, are costs which remain the same, regardless of the production level. These include costs such as rent and

The Cost-Volume-Profit(C-V-P) analysis is the analysis of the cost evolution models, which point out the relation between cost, production volume and profit. The C-V-P analysis is a useful forecasting as well as managerial control tool. This analysis technique expresses the relation between income, sales structure, costs, production volume and profits and includes break-even point analysis and profit forecasting procedure. These relations may be used by managers to make short term forecasts, to assess company performance and to analyze decision making alternatives.