Essay about Tesla Motors

Two parameters define Tesla’s industry competitive environment: what Tesla is today and what Tesla hopes to become in the near future. Today Tesla delivers an EV in the high-end luxury market ($70k+), but plans to deliver an affordable ($35K) small sized sedan in the next few years (Kaufman, 2015). The differences between Tesla’s current and future plans affect the threats and opportunities for potential entrants, industry competitors, and buyers in the near term and long term.

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

Their slogan is, “Burn rubber, not gasoline.” This is extremely beneficial for the company because it gives them a brand image and a concentration, as well as the ability to focus all of their efforts on being the best at electric vehicles. They’ve entirely ignored alternatives like diesel, ethanol, and hybrids. They’ve strayed from the known gas-electric hybrid, and plug-in hybrid to focus on their initial goal; zero-emissions, zero fuel. Competing companies like Ford, Chevrolet, and Toyota are famous for the combination car, that can’t be considered a true electric vehicle without the plug-in and charge feature, and by still being partially fuel driven. On top of that, the Tesla Model S uses about half the energy of a Toyota Prius per mile, and achieves double the range. By focusing exclusively on the true electric vehicle, with a mindset that oil could run out one day, Tesla is unique and far ahead of the game.

Mangram, M. E. (2012). The globalization of Tesla Motors: a strategic marketing plan analysis. 20(4), 290-310. Retrieved April 1, 2017.

Electric cars over the last several years have been a controversial topic. Companies have ran into issues regarding the batteries, pricing, and clearly competition with gas fueled vehicles. I noticed Tesla Motors a few years ago and instantly fell in love with their electric vehicles. Tesla managed to keep a very clean look with a sports car feel to their vehicles, and they are currently working on their new battery which is expected to last much longer. The price of their vehicles at the moment are priced higher than most average families can afford, but Tesla announced they are releasing a more affordable vehicle in 2017. Throughout the existence of Tesla they have made it clear they will not settle with just making vehicles that are in compliance with the laws set in place, their company will strive to make the best vehicles they can.

Tesla Motors is located primarily out of Palo Alto, California. Its main priority is to push the transition from gasoline cars to electric cars in the immediate future. Their vision states, “Create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles.” In order to take on such a daunting task, Tesla is faced with the creation of an improved car that is affordable and can run solely on electric capabilities. But to begin, Tesla realized that they couldn’t begin with an inexpensive electric car because it would have been too expensive to manufacture. So Tesla began working with an expensive sports car: the Roadster. The idea behind this decision from upper management was that profits from the Roadster would pay for a less expensive car. Once the Roadster was created, about 2,500 models were sold in 2012 and 4,900 in 2013, allowing the car to be the top-selling plug-in electric car in North America. The Model S, the next cheaper version of the electric car, won the 2013 “Motor Trend Car of the Year”, the “World Green Car”, “Car of the Year”, and Time Magazine Best 25 Inventions of the Year 2012 award. With these achievements, Tesla Motors has promised to design and sell high-performance vehicles with highly efficient electric motors with no compromises. Tesla

Strength: Tesla is a well-known brand that is recognized for its environmental and innovative sustainability range that its products offer to consumers.

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.

Mr. Musk said, in the next two to three years Tesla Motors plans to make their electric cars price range from about 30 thousand to 35 thousand dollars. These more affordable electric cars will be 20% smaller than the Tesla model S but the cars themselves will still be able to travel 200 to 250 miles with one single charge. By then Tesla Motors plans to have supercharge networks positioned throughout the US and Europe, allowing Tesla vehicles to be able to drive across the United States. Old auto industries hate that Tesla Motors are bringing these new innovations to the forefront as it disrupts their idea of the ‘perfect auto industry’, which includes the worst car salesmen, okay safety, somewhat bad service and wasting money on gas energy compared to what Tesla Motors is trying to bring which tops all of that.

The car business, including manufacturing, distribution and service, is one of the largest industries in the United States. Ford, General Motors, and Chrysler make up 49% of this market and are known as the “Big Three”. Since WWII, no U.S. company, including the Big Three, has been successful in mass-producing a vehicle in the car industry. Perhaps with Tesla’s Blue Ocean Strategy, their innovative way of designing, developing and marketing the electric vehicle, most likely will continue to be successful in this market.

But in the long run its much cheaper to dish out the money for a tesla opposed to a gasoline fueled vehicle for example someone who drives 12,000 miles per year, the driver would have to pay around $1,603 for gas. Meanwhile, a driver who drives an electric car for the same number of miles, only have to pay $449 for the electricity. You would save $1,154. So in revenue you would spend more money on a brand new tesla but you would save thousands a year by charging and not buying gasoline for your car. The only downfall would be charging and how long it

With the advancement of technology, electric cars like the Tesla Model S and the Nissan Leaf can travel to very far locations strictly using electricity. The Tesla model S has a range of roughly 300 miles. The Nissan leaf has a range of 126 miles per gallon. With zero gas consumption and not having to visit service shops for oil changes. The rechargeable batteries used by electric cars are nearly 98% recyclable, which eliminates battery disposal problems. Although you will spend more on an electric car, the amount of money you save on gas and maintnence repair will keep your money in your pocket. The government actually offers a $7,500 tax credit for every person who purchases and electric car. Even when electric cars are powered coal fired energy, they still produce 40% less gas emissions than fuel powered cars. “ We need more electric vehicles on the road,” says the Senior Program Manager for Environment America’s Global Warming Solutions. It is a necessity for our leaders and the car industry to create electric cars that are as cost efficient and convenient as cars that run on oil. The technology needed to produce electric cars is available. Car companies must use this technology to produce a wider model market for them. All car companies should work together rather than compete against one another to replace traditional gas powered cars. Nissan,

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

Founded in 2003, Tesla is an electric car manufacture company that started in California, they are considered leader in its category. Tesla electric cars not only outsold Nissan Leaf and GM electric cars in US. Their latest Model S had also outsold BMW 7, Audi 8. Tesla is also targeting SUV consumers with their Model X.

One solution for the issues facing the automotive industry is electric vehicles (EVs). In 2012 President Obama announced the “Electric Vehicles (EV) Everywhere Challenge”. The program was designed to incentivize manufacturers to make EVs more affordable and convenient to own and drive than gas vehicles within ten years (Bajpai, 2016). EVs were expensive and inadequate when they first hit the market; however, recent advancements have led to increased sales, viability, and reduced prices. Consumers that make the decision to buy an EV experience benefits of a smooth and quieter ride, home recharging, cheaper operation costs, and no vehicle emissions. Per Lachnit (2016), in 2014 the average cost per kilowatt hour was 12 cents. At that rate, it would cost a Nissan Leaf owner $3.48 to go 100 miles. Additionally, EVs do not have the same internal