Tesla Motors Failure

985 Words 4 Pages
Elon Musk, CEO and owner of Tesla Motors, Inc., and leader in electric vehicles is faced with much opposition from other competitors in the automotive industry. As the industry began to fluctuate, cost to operate in the U.S increased for production, infrastructure, technology, and manufacturing. For Musk, this became a huge problem when coming up against such large automakers. Therefore, he made the decision to manufacture his brand abroad. It was vital for this innovator to reposition the company in meeting its demands

Tesla Motor Inc. has been viewed by many in the industry as a small company headed for failure. The threat of entrant is a challenge for most automakers in the U.S. and abroad. The company gained its entry by expanding
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largest competition comes from U.S. automakers like General Motors (GM), Chrysler, and Ford. The problem is U.S. manufacturers pay a higher cost to manufacture their brands, wherein foreign markets have a lower cost. Also, U.S. automakers are constantly subject to government regulations, union negotiations, and having to decrease their labor forces; which placed each one in a vulnerable position. Despite the fact, a government "bail-out" called Troubled Asset Relief Program (TARP) was put into order, giants like Ford did not accept it. Instead this automaker capitalized off its assets during the recession. As for GM and Chrysler each one accepted the bail offer, but in the end GM filed for bankruptcy, and Chrysler filed for Chapter 11 …show more content…
When a company takes measures to add incentives or tax credits, this is just a temporary measure that doesn’t last. For example, it is like having a coupon for a product, and when you go to use its expired. To make a profit, the owner of Tesla could benefit from other automakers, and users of electric vehicles to use its charging stations. As for situations view by the public, Musk should hire an experience public relations (PR) person to address any issues that may damage the Tesla brand. Its possible this may stop some of the negative publicity before its released. Furthermore, there are other automakers in the industry fighting back to maintain that competitive advantage by supplying other forms of fuel for a cleaner environment. Musk must continue to join these futuristic automakers that will advance his company into the next century. The bottom-line is Elton Musk, the owner of Tesla Motor Inc must lower the prices on its vehicle. If not just like other automakers in the industry, he will have to file for

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