Introduction
This report examines factors impacting performance and planning for Tesla Motors and outlines current financial situation for the company. The following topics are discussed in this report.
Background about Tesla Motors
Case study discussion
Situational analysis for Tesla
Financial situation.
Summery
Background
Tesla Motors is specialized in manufacturing electric vehicles and powertrains components related to the electric vehicles. Beside that ,Tesla Motors is owning network of supercharger stations and service centers. The company is focusing on selling directly to the customers to enhance customer experience and promote the company brand. Currently, the company is manufacturing and selling its second generation of electric vehicles named Model S sedan. Tesla Motors sold over 25,000 Model S vehicles in North America and Europe as of December 31, 2013.The company is planning to commercialize Model X crossover in spring of 2015 and planning to build its third generation of electric vehicle called “Gen III” after three years.
Case study analysis
The case study discussed the situational analysis and company strategy for Tesla Motors. The analysis can be summarized, using SWOT analysis, in table below.
Strengths
Vertical growth
Horizontal growth leader in manufacturing of electric vehicle and the powertrains components for electric vehicles
Customers focused.
Green technology
Weaknesses lack of profitability limitations and problems for battery (slow recharge, range anxiety, decreasing battery capacity over the time ,heating and failure)
Need for high research and development expenses
Opportunities
Emerging market for electric vehicles
Threats
Competitor
economic slowdown
Alternative power technologies...
... middle of paper ...
...The company automotive sales for 2013 increased to $1,997,786 from $385,699 for 2012.
Tesla Motors
Industry
Sales (TTM) vs TTM 1 Yr. Ago
387.23%
35.72%
5 Year Sales Growth
167.35%
10.89%
Summary
Although Tesla Motors has great potentials to be the vanguard in emerging electric-based vehicles market , Tesla Motors needs to address challenges associated with strong competition, technological advancement and financing its operations.
References:
Peter Valdes-Dapena. (2013, May 9), Tesla : Consumer Reports' best car ever tested. CNNMony. Retrieved from http://money.cnn.com/2013/05/09/autos/tesla-model-s-consumer-reports/ TSLA Ratios.(n.d). Investing.com. Retrieved from http://www.investing.com/equities/tesla-motors-ratios Tesla Motors, Inc. (2013). Annual report. Retrieved from http://ir.teslamotors.com/secfiling.cfm?filingID=1193125-13-96241&CIK=1318605
The Automotive, or electric car industry particularly, comprises all those companies and activities involved in the manufacture of electric motor vehicles (EV), including most components, such as engines, bodies and rechargeable batteries or another energy storage device. The industry’s principal products are passenger automobiles. Despite the fact that the first electric cars were produced in 1880s , the advances in internal combustion engines, especially the electric starter, soon diminished the relative advantages of the electric car and became the dominant design in the market. Due to this the EV was almost a forgotten industry staying in the early stage of development, conforming to less than 1% of the automotive stock
Today's automotive industry in very competitive. Ford has had to find ways to keep ahead of the following major companies: BANC ONE, Bank America, BMW, Budget Group, Chrysler, Daimler-Benz, Enterprise Rent-a-Car, General Motors, Honda, Hyundai, Isuzu, Mack Trucks, Mitsubishi, Nissan, Peugeot, Saab, Suzuki, Toyota, Volkswagen and many others. Ford has developed a number...
A SWOT analysis is used to assess a company’s strengths and weaknesses found within the company, as well as opportunities and threats that emerge from the external environment. In this analysis, the main strengths, weaknesses, opportunities, and threats facing the Ford Motor Company will be discussed to provide a powerful analysis tool that supports the planning process for marketers.
The contraposition for Tesla Motors is the rapid service received. Despite not having a traditional infrastructure, the company beats it opponents in its operational expeditiousness. The Palo Alto automaker’s response time for issues is often overnight, and always beyond convention. One customer with some play in his gears had his entire drivetrain replaced.
In December of 2010, the world’s first, entirely electric vehicle was introduced to the car industry and Nissan was responsible for launching this innovative car known as the Nissan Leaf (“Nissan Product Information”). According to business reporter Michael Strong, Nissan Motor Company’s CEO Carlos Ghosn previously set a goal of selling 1.5 million electric vehicles by the year 2016. However, in 2013, Ghosn announced that it is very likely that Nissan will not reach this goal. He believes this may be achieved four or five years later than expected. Ghosn and Nissan Motor Corporation have evaluated the weaknesses of the Nissan Leaf and have discovered the contributing factors in the surprisingly low sales (Strong). In this commentary, it will become evident if Nissan has made effective improvements to pick up sales of this innovative vehicle that could result in the future of cars all around the world. The reasons for their underperformance will be evaluated and their ability to make the necessary changes to improve sales will be evaluated. A SWOT analysis has been set up to analyze the Nissan Leaf, its strengths, weaknesses, opportunities, and threats. This will show if Nissan has made the necessary changes to better their sales of the Nissan Leaf.
Tesla Motors Case Study Tesla Motors is a company that produces and sells automobiles. Tesla is not an old automobile company. Tesla specializes in all electric cars that run 100 percent on battery and focuses on the future. Tesla is looking into the future and realizes that fossil fuels will eventually run out. Tesla is moving toward a zero-emission future for the better.
Chiefly, and most apparently, it is the goal of Tesla Motor to generate demand for Tesla vehicles (Andrade, Holloway, Payne, Roy & Sheffield, 2015). In turn, demand will drive leads to the Tesla sales team (Andrade, Holloway, Payne, Roy & Sheffield, 2015). Tesla will continue to build long-term brand awareness, in addition to continual management of corporate reputation (Andrade, Holloway, Payne, Roy & Sheffield, 2015). Tesla Motors will expertly manage the existing customer base to create loyalty and increase customer referrals (Andrade, Holloway, Payne, Roy & Sheffield, 2015). Additionally , Tesla Motors hopes to enable customer input into the product development process (Andrade, Holloway, Payne, Roy & Sheffield, 2015).
The focus of Tesla Company is on a niche in the automotive industry, which is building and selling electric cars. To a company like General Motors, the electric cars line of business is considered a side business, hence it only needs to study the patterns of Tesla’s cars then build on of its kind that will take Tesla out of business (Debord, 2015).
Tesla Motors initially gained widespread attention by manufacturing the Tesla Roadster, the primary totally electrical sports automobile. The company's second vehicle was the Model S, a completely electrical luxury sedan. Tesla additionally markets electrical powertrain elements, as well as lithium-ion battery packs, to automakers, as well as engineer and Toyota. Tesla's CEO, Elon Musk, has said he envisions Tesla as an independent maker, geared toward eventually providing electrical cars worth cheap to the typical client.
Manufacturing will run on 100% renewable energy helping our environment a lot. As of the year 2018 almost 500,000 cars should be produced. Tesla’s market value is $33.5 billion. Tesla’s stock market has risen over 1000% since 2012. To start tesla Elon Musk invested $70 million of his own money. Elon Musk is a successful businessman with 4 companies valuations over $1 billion. Elon Musk has a networth of $12.1 billion. Many of the Tesla sale models are illegal in many U.S.
Perform analysis of the current Tesla market position. Determine strengths and weaknesses of its products.
This has resulted in exposing many automobile users to unpredictable prices of fuel. These issues were, however, the reason for the inception of Tesla Motors so as to bring into existence another set of automotive which serves the similar purpose but uses another form of energy that is electricity to drive them instead of the disadvantageous gasoline-powered engine. This invention was influenced by a number of factors in terms of its planning and performance (Hunger, 2010). Factors affecting Tesla’s planning and performance. The success of any organization, just like the Tesla Motor, largely depends on the planning of the activities by the management team in the company.
Tesla has managed to build a notable brand name for itself not in the electric car market, but in the overall automotive industry. Its brand performance offers a robust, reliable and unique image that gives customers the satisfaction that electric cars can be stylish, reliable, hassle-free and much less bulky than internal combustion engine vehicles.
Are Electric Vehicles (EVs) comparable to internal combustion engines (ICE) technology vehicles? Do EVs represent a disruptive technology?
The Capital investment, skilled and licensed labour force, technological advancements, working with good quality suppliers is considered big barriers of entry into this industry. The future requirement of electric cars and hybrid vehicles has opened this industry to some new entrants like Tesla.