Key Strategic Implications: The perception of Tesla is innovation, futuristic and appealing. Status is another word associated with Tesla, in countries like Norway and Sweden, the price you pay for the car is one-third of its value, compared to a gasoline or diesel car. They positioned themselves in the market that they both appeal to the high end customers, but also with the Model 3 they would reach a bigger fraction of the market they operate in. Tesla´s well known supercharger network, that recently just reached a 1,000 stations worldwide. Serves as a backbone to their plans of global expansion. Without these stations, even with the long range the cars offers, it is always a need to charge and refill the batteries. The production of a Tesla car, is being controlled all and alone by Tesla. Their factories are owned and operated by Tesla, and with the acquisition of Grohmann in Germany, they have further expanded their production to Europe. Also, mentioned earlier with a joint venture in China could further help the expansion into the Asian market. On the other hand, operating all alone in such a competitive market like the car industry, It can easily be limitations on their supply chain, when big companies such as Detroit´s Big Three are in the same market. Furthermore, Tesla is selling their cars through their website with no …show more content…
The car industry knows that the time of fossil fuels are coming to an end. Therefore, electrical cars are part of the future. We will one day depend on them, for companies like Tesla that has only made electrical cars they are currently in the "lead" so to speak, they have all their concentration on the market and are already established among the consumers. Meanwhile, the other big ones still have to focus on the market as it is today, even so many of them have plans for the future as
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
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.
Tesla motors is a company that produces and sells automobiles. Tesla is not any 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. A tesla is a vehicle, an all-electric vehicle that combines safety, performance, and efficiency. In 2016 Tesla’s annual revenue totaled to 7 billion dollars. Tesla is a profitable company. Tesla has seen potential growth in annual gross income, since 2012 from earning 30 million dollars to 2016 earning 1.5 billion in annual gross income. (1) The Tesla factory is located
The future American commuter will undoubtedly have to transition from the use of fossil fuels to new alternatives due to the diminishing availability of the nation’s oil resources. How will America respond to this upcoming issue? It is difficult to predict which alternative fuel source America will ultimately choose, but with the premier of Nissan’s electric powered Leaf and other companies; such as Tesla Motors and Chevy, with their electric cars ready for market, the electric car may be winning the race to become the new standard for the gasoline alternative. Electric cars resolve long standing environmental issues, but it will need to maneuver around many roadblocks to become a marketable consideration for the general public. The cost of electric cars, currently on the market, makes them an impractical purchase for the average consumer. If cost is not the growing concern in today’s economy which prevents the consumer from considering this option; they may deny the technological advance due to battery storage capabilities and the inadequate infrastructure in place to refuel and provide for them.
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).
Electric cars are attempting to bring on an uprising. A modern company, Tesla Motors, is bringing the all-electric car to life. Tesla has been very successful in the past couple of years, engineering a vehicle that will impress safety standards. Although it has been quite a bumpy ride along the way for CEO and founder Elon Musk of Tesla Motors. Tesla has big plans for the future. However, the plans will not be necessary unless Tesla is allowed to sell their vehicles directly to the consumer and not through dealerships.
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.
Despite its success, Tesla Motors has been facing serious challenges throughout its history, for example:
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.
Electric cars are becoming increasingly more necessary, and have more advantages than disadvantages. Electric cars help to decrease the noise, pollution as they are much quieter. They do not emit any (or much less) carbon emission than petrol cars. Electric vehicles are the greenest mode of transport in the personal transportation industry. For each litre of fuel used in an engine produces more than 2.5kg of CO2. CO2 will be produced by an electric car but still a very little amount. It is also possible to use renewable power or a green energy supplier in the electric car. Thus it would lead to less polluted and safe working environment for all of us. However, safety is a big concern with using vehicles. The fluids in the batteries actually take impact better than a fully made gas car because it is not that flammable. Petrol cars and diesel cars are more flammable than electric cars so they are greater of taking impact in the event of an accident. I think that this is a very good reason because fewer people would get injured or hurt. This would save money because electricity is cheaper than gas and electric cars are easy to operate. Also is very ECO –friendly which mean that it is cheaper to run and have to pay very little road tax. In a pure electric vehicle there’s nothing combustible and have far fewer moving parts than you would find in a petrol or diesel car.
Many vehicles in fleets operated by companies or government organizations are assigned to routes that could easily be handled by today’s electric vehicles. The driving distance for electric vehicles will become longer as advanced types of batteries, fuel cells, hybrid systems and other technologies continue to be developed. Costs for charging an electric vehicle will depend on the time of day the owner charges the vehicle, the utility rates, and the type of the electric vehicle. What’s almost certain is that people will pay substantially less than you pay to refuel a gasoline-powered car. The average monthly fuel cost for a typical electric vehicle driver is expected to be less than $15, compared to $50 for gasoline.
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.