Tesla Merger Essay

Comments: While comparing the two you can see both company, generates revenue and have generated gross profit. General Motors overall has great standing as their net income is still in the positives after subtracting all their other expenses. Tesla also seems to generate revenue and show gross profit. The only difference is that their net income stand on the negative side. This made me conclude that even after taxes and other expense are deducted they still do not have any remaining profit. Meaning Tesla maybe having debt.

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 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,

I have loved cars since I can remember. My dad starting selling cars ever since I was seven. I became his “secretary” at age 9. I would clean the cars, take pictures of them, and post them online. I love cars. Therefore, if I had a ticket in my hand to go anywhere, I would take a one-way flight to Palo Alto, California. I would go to Palo Alto, California because that is where Tesla Headquarters is located. It would be one-way because I am sure once I am there, I would not want to leave. I believe Tesla is changing the world. Tesla is on its way to making autonomous cars. I read in an article that Tesla is already planning to demonstrate a one hundred percent fully functioning self-driving car by the end of 2017. I want to be a part of that.

Instead, what ties the cars-plus-solar Tesla store together is an implicit guarantee of good customer service and sophisticated technology that’s easy to use. That’s branding that can never quite come together so long as Tesla and SolarCity remain separate companies. But together, it just might expand the entire market for solar. A Tesla showroom finally answers that question asked by millions of homeowners: Where do I

This paper explores the merger of Tesla and SolarCity. Tesla is the most successful electric car company and has won multiple awards for its’s product offerings. SolarCity is the largest residential and commercial solar installer in the United States. Tesla is a successful car company but is still plagued with financial concerns due to its upcoming mass market car, the Model 3, and its battery plant, the Gigafactory. SolarCity has its own financial woes as last year it posted revenues of just $1.5 billion while amassing $3 billion in debt. These financial troubles have investors worried. Elon Musk, CEO of Tesla and Chairman of SolarCity, believes that by leveraging SolarCity’s installation network and Tesla’s global retail footprint, that the merger will create significant value for its shareholders. Synergies of the merger will allow Tesla to achieve a competitive advantage and lead the way in clean energy product innovation much in the way Tesla has done with electric cars. Investors and analyst are also worried about corporate governance concerns as Elon Musk is the CEO of Tesla as well as the chairman of SolarCity. Lyndon Rive, SolarCity CEO, is also the cousin of Musk. Time will tell if Tesla and SolarCity can successfully merge and create the world’s first vertically integrated energy company.

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

The purchase of Tesla was equal parts technical, and fundamental analysis. Tesla being one of my first big purchases of the game, I first checked the stock’s history. The stock has seen a large resurgence in February and was set to raise. Upon seeing this, I decided to check up on the Fundamentals of the company then decide whether or not to invest.

Sunpower Corporation is an American solar energy company which manufactures, designs and deliver high efficiency solar solutions for homes, businesses and utilities by being a global solar energy solutions company and technology leader. Sunpower was founded in 1985 by Dr. Richard Swanson, a professor of electrical engineering at Stanford University and its headquarters situated in San Jose, California, and the Company also operates in Africa, Europe, Asia, Australia, South America and North America. The main goal of the company was to commercialize solar concentrator technology. (Sunpower Corporation, 2016; SRI World Group Inc, 2016; Ellen MacArthur Foundation, 2015)

The SunPower Company is an up and coming manufacturer and seller of photovoltaic (PV) panels. As a young company with a strong desire for innovation they operate in an atmosphere where competition is very high and SunPower and the competition continue to fight for market shares. For SunPower management team to promote its growth will need to make sound decisions to ensure it stays competitive with the market. As seen in 2008, with other solar companies already dominating the market, increasing sales was an imperative goal to achieve its main objective to maximize profit.

Tesla’s potential profitability in the automotive industry is strong. Tesla has chosen to invest heavily in electric vehicles, and more importantly a better battery to power these vehicles. With that battery the have also made solar panels and solar power storage more convenient and efficient for homeowners. Rivalry among existing competitors is a strong force. There are a small number of firms, which makes the force against Tesla weak (Kissinger). However the constant aggressive innovation of other firms products, coupled with brand loyalty makes a strong force working against Tesla (Kissinger).

The literature reviewed for this assignment comes from information resources ranging from academic journals, internal reports, financial statements, and Tesla’s Form 10-K 2016. The information ranges in date from 2015 – 2017.

Tesla use swinging by the fences strategy, which implement high risk business, however generate high return. First, we target the high end customer by producing high class product. We produce the product at the same level as Maserati, Porsche, etc. We need to make an high brand image for the brand, especially the Tesla brand is still new to the automobile industry. Telsa has this different aspect from other car nowadays, Tesla operated by battery or we could say Tesla produce electric car. After we got quite some revenue to expand our market, we will target new segmentation of customer, which lower than the above explanation. We produce a product with price range from US$ 50,000 – US$ 75,000, which has lower class than Maserati and Porshe. We use this marketing