A Case Study: Tesla, Inc.

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Tesla, Inc. Tesla, Inc. (formerly known as Tesla motors) is an American company that was founded in 2003 by a group of creators who wanted to demonstrate that people didn't have to compromise to drive electric. Tesla is a multinational corporation serving countries in north America, Europe, middle east and the pacific, providing eclectic vehicles for a total of thirty- seven countries. Tesla's headquarters is located in Palo Alto, California, and as of 2017 the have a total of thirty- three thousand employees (33,000). Tesla offers four different models of electric cars such as: The Roadster (2008) which provides a mile range of 620 miles and a top speed of over 250 miles per hour (mph) as well as other specifications. Model S (2015) was…show more content…
Although, inside the electrical vehicle market in which Tesla position itself, the rivalry is humble because of small number of competitors. Tesla’s Model S (it ranges from $70,000 to over $100,000), but its range is 265 miles, more than triple that of Nissan’s Leaf (75 miles) (MIT Technology Review). Within a few years, Tesla hopes to produce much more affordable vehicles. However, this market is very appealing and expanding rapidly, therefore more companies have entered it. Audi benefited by being able to join this small market. Porsche may lose customer who want to be eco-friendlier since they still haven't developed any electric…show more content…
Tesla is at an advantage since they now sell their patented powertrain components to rivals and is focused on building the market to bring prices down for the average car buyer (Hurst, A). Audi "we delight customers worldwide" is more consumer based where it offers more luxury to the customers and have yet to evolve fully into the manufacturing of eco-friendly cars. Toyota aims to be the most successful car company like Tesla that is why they have also gone in electric cars and now severed ties with Tesla. Weaknesses Tesla has a lack of liquidity. Tesla lost 70 million in 2013 even with the high sales of model S to debt and failure to attain arranged price deduction and operating fees. Tesla loosed more than $4000 on every Model S they sold, using its reckoning of operating losses (CNBC,2015). However, companies such as: Nissan and Suzuki may be losing customers even though of tesla's weakness since they have an electric vehicle that offers luxury as well as, eco-friendly. Toyota benefitted since they have finally developed their own fully electric car and is a financially stable
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