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TESA Case Study: Tesla

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TESLA MOTORS called “TESLA” is a U.S automotive and energy storage company. The company was founded in 2003 by engineers from the Silicon Valley in San Francisco (U.S). The chairman, CEO and product architect of the company is Elon MUSK. the company is based in Palo Alto (major office location) but it has more than 55 others offices all around U.S.
The company is registered on the stock exchange market: NASDAQ and its stock symbol is: TSLA. In 2015, TESLA’s revenue was $3,7billionn (+27,5%): $1,11bn during the 4th quarter. The company continues to operate at a loss despite this improvement in revenue. Losses are due, in large part, to high sales and Research & Development costs.

The main goal was to prove that electric automobile has higher
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The company sells its product through an important network of stores but also through Internet. The home market (North America) represents the main part of the world concerning its sales (75%), then we find Europe with approximately 25%. Since 2014, Tesla is on the Chinese market with 14,9%.

Mergers & acquisitions:
In 2016, Tesla and Solar-City have merged. In fact Tesla announced that an agreement of $2,6billion with Solar-City (solar energy producer). This company has also been created by Elon MUSK. This merger wants to create a relation between solar power storage and energy supply for electric cars but also power station, houses and offices. TESLA says that this merger will allow to increase TESLA revenues and help the company to improve its profitability.
In November 2016, TESLA also announced to buy the company Groh-Mann Engineering. The company will be recalled: TESLA Groh-Mann automation. This acquisitions will allow the company to increase its effectiveness: produce 500 000 cars by 2018.
Main Activities
TESLA count more than 13,000 employees all around the world.

Cars
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For the next year, the company wants to deliver between 80,000 and 90,000 copies of MODEL S and X ( an increase between 58% and 78% compared to the previous year). As seen previously, the company has launched, since the beginning, 3 products:
● The ROADSTER: launched in 2008. TESLA sold more than 2,000 ROADSTERS around 30 countries in the world.
● The MODEL S: launched in 2012, the first electric sedan car with 7 passengers. This model has been elected “car of the year” in 2013 and received 5 stars concerning the safety.
● The MODEL X: launched in 2015, it’s the first SUV (sport utility vehicle) model. This model is sold in all the markets where previous models are available (US, Europe & Asia).
● The MODEL 3: launched in 2016 but the production didn’t start yet (2017). It’s a lower price sedan. This product is address to the mass market.

Energy storage products
To complete its manufacturer activity, TESLA sells also energy storage products. These products are in addition with the vehicle powertrain systems. The company announced a new generation of energy storage products for uses at home, commercial sites and utilities:
● Powerwall: the 7 kWh and the 10kWh for houses,
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