Elon Musk, the cofounder, chief executive officer and visionary of Tesla Motors captured the public’s attention by providing us with a green, stylish, and affordable alternative to the traditional gas-guzzling automobile (Hull, 2015). Musk has become somewhat of a celebrity, enabling him to raise billions from investors that believe in his vision for the future of electric vehicle transportation. Now he must convince the consumer to invest in his company, and buy a lot more cars (Hull, 2015, p. 20). Tesla sold only 50,000 vehicles in 2015, but with 400,000 pre-orders for the 2017 Model 3, Musk recently announced the production target for 2018 at 500,000 vehicles (DeBord, 2016). Tesla Motors holds a unique position in the automobile industry. When musk formulated his vision of Tesla Motors, he decided to defy the status quo and completely change the automobile industry. He noticed other automobile manufacturers were not producing electric cars as well as they could be produced, which led him to Tesla’s niche (Stringham, 2015, p. 87). According to Musk, “the single largest macro problem that humanity faces this century is solving the sustainable energy problem—that is, the sustainable production and …show more content…
Tesla’s strategy is to conduct direct sales, from the manufacturer to the consumer. U.S. States require automakers like Ford and General Motors to sell their vehicles through networks of independent dealers. Tesla has fought and one against dealer franchise laws in several states, but some states still refuse to allow direct sales. In the states that refuse to budge on the direct sales issue, Tesla opened galleries where consumers can view the vehicles, but they cannot test-drive, or discuss price with Tesla employees (Hull, 2015, p. 21). Restrictive state laws are proving to be a significant threat to Tesla’s direct sales approach and may lead to a change in strategy in the
The 2006 documentary about Who Killed the Electric Car shows the determination of several California citizens whose willpower was to keep the electric car alive and running. The first existence of the electric car under General Motors (GM) dates back to 1996 when they launched the EV1 electric vehicle. And although several consumers took to this new form of transportation, a car that was powered by an electric motor in place of the basic gasoline engine, GM decided to take back its newest technology and removed all existing EV1’s from off of the streets. With several upset consumers who were concerned as to both what GM and the government were up to and how they could get their cars back. Overall, the fact behind why the electric car became such a superior commodity and then vanished was the question being asked. The electric vehicle was destroyed during 2004 and 2005 because a car of this statue was far ahead of its time and greater parts of consumers were not about “going green.” Today the electric car has begun to revive itself because of the existence of global warming, and the efficiency of the electric car is rising. In other words, the electric car has been brought back to life, and many automobile manufacturers are gaining interest.
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).
However, despite Tesla’s internal competencies and a reputation of building exquisite products, it still encounters lack of major resources and capabilities that its competitors own. Building a car takes years or
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.
Thomas Jefferson’s statement, “We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among these are life, liberty and the pursuit of happiness,” (Declaration of Independence), is probably the most famous phrase in U.S. History. It simply and eloquently summarizes both the principals and ideals of American society. While history is full of cases where individual Americans who through enslaving or discriminating against their fellow men have hindered society from living up to this ideal, there are also many individuals who brought America closer to this ideal. Few American’s, however, have had a more positive impact on enabling life, liberty, and
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 offers adults who want a luxury car without paying a fortune in gas prices with future generation electric cars, that where style, performance, and the environment are never sacrificed.
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
Tesla is highly recognized for its excellent lead in the enhancement of a sustainable future. In summary, there is a need for protecting the environment to become cleaner, greener and sustainable one. With the number of vehicles that operate globally on petroleum and diesel, the environment will be wasted and totally degraded in a short time. It is important to apply such new technologies for the better of the future. Tesla been a pioneer in this industry has brought about changes that can be applied to change the world. For this reason, as many companies as possible should embrace the strategy of Tesla in the development of a sustainable future.
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.