Tesla Research Paper

To me management starts from the very top of a company and works its way down to the everyday employees. By the very top, I mean the highest possible rung on the ladder for a given company. The company I chose was Tesla, it was not one of the example companies, but is a company that has been in the news for their innovation and a personal favorite company of mine.

At the head of its ladder is arguably one of the greatest modern-day innovators Elon Musk. With a goal to land a man on mars, his personal ambition and innovation is obvious. If anyone is unaware of what Tesla is, they are an electric car company, when as of writing this post, just fell from the number one spot of US automakers in terms of market value. From a New York Times article

They argue that it is Tesla’s business practices that are their real innovation and after reading the article I have to agree. Three points of the article really stuck out to me. The first being their target market, which upper class. Tesla’s cars are not cheap, (except the new Model 3 which is to be released soon), they cost upwards of $70,000.00. An average person could not afford their more expensive models, but that is why they branched off into the Model 3, a cheaper more affordable car. The second point was about advertising, and it made me think, I do not remember ever seeing a Tesla commercial. Has anyone ever seen a Tesla car commercial? The answer is no because the only Tesla related commercials are fan created. So, Tesla has no marketing budget yet was the highest rated US Automaker for a few months, clearly, they are doing something correct. Is this a trend that more companies will adopt? I do not think so as Tesla is a unique company and if other top companies take this approach their sales will drop due to their reputations of major advertisements. The examples I think of is Coke & Pepsi, the moment one of them stop advertising, the other is going to run away with the

Companies like Ford & GM find people such as myself who are interested in owning a dealership and sell cars to them, and in return when the person makes a sale Ford gets a portion of it. Tesla, on the other hand owns all the retail stores that sells their cars, not dealerships. This is one trend I can see other top companies adopting. As car sales continue to drop for lack of innovation in vehicles for dealerships will ultimately close. Perhaps we may see “mega” dealerships in larger cities that replace a 25-50-mile radius of smaller locally owned