Case Study: Tesla Motors, Inc.

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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 into foreign markets. This has enable the company to turnover a mass production of vehicles that differs in price and in quality. Vehicles like the Tesla Roadster 2, Roadster Sport, Model S family sedan, Model X, and Daimler Smart car all have achieved superior ratings worldwide. Tesla continues to strive for efficient and better performance in their vehicles. The automaker’s goal is to be the best in producing electric vehicles in the industry.
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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

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