• Home Page
  • Strengths And Weaknesses Of Tesla Motors

Strengths And Weaknesses Of Tesla Motors

Improved Essays
Show More
Pierre Lys
Tesla Motors
Tesla is quite an interesting company that seems to be ahead of the game In terms of car manufacturing. They have set out to try to be the most cost efficient company there is. CEO Elon Musk has a wide range of great ideas that have to do with saving our ecosystem and our money due to the use of solar panels. Although Elon Musk is trying to save us money is he really benefiting his company along the journey? Join me as we take a deeper look into the company Tesla one of the few motors that are 100 percent made in the US. A company for the future that focuses on energy innovation.
They’re great for the environment, but they’re pokey and impractical, and nobody wants to buy one. The stunning success story of the Tesla …show more content…
They completely dominate the market for low range electric vehicles. The company has had a very fast growth rate along the years since its conception. Tesla has unveiled a new model 3 that expected to be a cheaper version of the model X and S, that will totally revolutionize the car market and hopefully take part in fishing the company out of debt . Tesla has spent a lot of its financial resource, for investments for research and development for the transformative tech in their vehicles.Tesla has been raising a lot of debt due to their rapid expansion and has consequently sold stakes of their company to produce quick cash.Tesla has nearly $2.5 billion of long-term debt and capital leases on its balance sheet, which is about 72% of it’s total income. Interest payments on the company’s debt are so, so enormous that they will continue to eat up future earnings of the company.
Tesla Model 3 is prices much lower at, $35,000. This model is will be in the same price range as lower end Mercedes-Benz and Audis, making it quite affordable to the mass population.The anticipated can and will determine if Tesla can significantly increase the number of cars they need to produce in a few years.Tesla is building a Gigi factory, which enable the company to build batteries for its vehicles with lower …show more content…
Tesla might not have enough funds to back up all its projects. Here are some key aspects of Teslas marketing mix and why it is effective. One would say that the key element of the marketing mix is their product or product development.Tesla has built its success on the manufacturing well engineered vehicles that function on electric batteries. Apart from this Tesla new technological advanced batteries are being sold at prices that are convenient for customers of all sought. Tesla has done most of sales online, but does quite a bit in stores too.
If you ask me Tesla is a greats stock here are some reasons why. It has the best technology and strongest brand by far, in the auto market’s largest growth sector.The value of Tesla’s stock increased past Ford and General Motors to become the most valuable car company in the United States. The amount of Tesla's yearly car production rate is about to explode from 100,000 cars today to 500,000 cars in 2018 because of the company’s lower-priced Model 3. Even better, this doesn't even take into account Tesla's newest energy storage

Related Documents

  • Decent Essays

    Research Paper On Tesla Cars
    • 308 Words
    • 2 Pages

    Research Paper On Tesla Cars

    I think at this point in time it is fair to call Tesla one of the most revolutionary car companies of all-time. Over the years, all of their models have changed the way we have looked at vehicles. They have implemented so many innovative features over the years that it is almost hard to keep up with them. So, with that in mind, here are four unbelievable facts that you probably didn't know.…

    • 308 Words
    • 2 Pages
    Decent Essays
    Read More
  • Improved Essays

    The Growth Cycle Of Tesla Motors: Product Life Cycle
    • 1028 Words
    • 4 Pages

    The Growth Cycle Of Tesla Motors: Product Life Cycle

    At this time the product has successfully been introduced to the public; however, must still prove itself to be able to survive within the competitive market. A brand that can be associated with this stage is Tesla Motors. This company was formed in 2002 and has proven to pass the introductory stage. The reason this company is looked at as a growing company is because of its sales that have been going up within the past couple of years. With growing public concerns about the environment the company has proven to produce relying cars that may one day be seen on almost every block. The company has had both successful and unsuccessful when it came to developing and researching. It is at this stage where Tesla Motors and other companies find new ways to promote to different segments with its features and promotions. Tesla is known to produce eco-friendly electric cars and is considered to be one of the most dominant companies within that part of the market. The company is still testing out the waters for its automotives while at the same time developing and growing its brand and…

    • 1028 Words
    • 4 Pages
    Improved Essays
    Read More
  • Improved Essays

    Internal Environment Of Tesla
    • 1053 Words
    • 5 Pages

    Internal Environment Of Tesla

    Tesla is built upon its largest core competency, its largest strength, innovative engineering and design. The company is led by innovative thinker Elon Musk, who has helped build a team of world class engineers, researchers, and designers at Tesla. The company’s strength in design and engineering is Tesla’s largest differentiation from its competitors. The company has used its advanced engineering and design to build the foundation for its strategy,…

    • 1053 Words
    • 5 Pages
    Improved Essays
    Read More
  • Superior Essays

    Evaluating The Effectiveness Of Tesla's Operation Strategies
    • 1833 Words
    • 8 Pages

    Evaluating The Effectiveness Of Tesla's Operation Strategies

    When implementing this strategy, it is important for operations managers to do market research. Tesla noticed that the use of gasoline cars was negatively effecting the environment, therefore they designed a car that is powered by electricity and consumes 50% less CO2. This allowed Tesla to target consumers who also had the same vision as Tesla, focusing on being environmentally sustainable. Most individuals would prefer a car that is easy, convenient, reliable and environmentally friendly. Tesla has met all these factors which has pleased consumers and therefore improved the performance of the business. The design of Tesla cars has attracted consumers once they heard that the car is powered by electricity. Consumers are interested in it as it is something new and unique in the market. Tesla cars are also beneficial for consumers as they save heavily from fuel. The annual fuel costs for average gasoline cars in USD is $1245 whereas annual running costs for Tesla is $423. The business has successfully gained a sustainable competitive advantage in the market due to their ability to differentiate their products from other businesses in the industry. This is complimented by their consumer focus in terms of their marketing strategy to align the company vision to that of its consumers. The business is very determined and has achieved what they have put their focus to. Tesla’s goals for within the next four years is to severely increase car…

    • 1833 Words
    • 8 Pages
    Superior Essays
    Read More
  • Improved Essays

    Analysis Of Tesla's Corporate Level Strategy
    • 722 Words
    • 3 Pages

    Analysis Of Tesla's Corporate Level Strategy

    Tesla Motors is a company that has known how to well penetrate in the car industry and in the market. According to Liu, Kang, Wu, Chen & Hon “Tesla is pursuing market penetration strategy and related constrained. Tesla intends to enhance their influence on the current markets with their current products. They also market their electric powertrain components to other automakers (2014).” Tesla is really focusing on working on market penetration and all related to it, so the company wants to penetrate in the market using their current products and offering tis product to other car companies. However, it is important note that the company not only make cars, but also works on technology, design, and energy innovation (Tesla, 2016).…

    • 722 Words
    • 3 Pages
    Improved Essays
    Read More
  • Improved Essays

    How Did Tesla Use Strategic Partnerships To Stay In Business?
    • 1793 Words
    • 8 Pages

    How Did Tesla Use Strategic Partnerships To Stay In Business?

    While Tesla designs, manufactures, sells and services their own vehicles they recognize that due to the company being one smallest auto manufacturers in the world that they needed strategic partnerships to stay in business. The first partnership that Tesla entered into was being with Daimler in 2010. For a 10% stake in Tesla, Daimler got Tesla’s lithium-ion battery packs into 1,000 of its electric smart cars. With the infusion of capital from Daimler, Tesla could continue with their research and development and stay in business. The investment also enables the two companies to work together further on the battery systems and electric drive systems.…

    • 1793 Words
    • 8 Pages
    Improved Essays
    Read More
  • Improved Essays

    Tesla Motors Research Paper
    • 1080 Words
    • 5 Pages

    Tesla Motors Research Paper

    Tesla Motors is taking the world by storm. Cofounder and CEO Elon Musk has helped the company be one of the most talked about motor vehicle company. A major focal point of Tesla is to produce environmentally friendly cars that are also tech savvy. Starting as a small company back in 2003 Tesla has since grown exponentially thanks to Elon Musk. He is a mastermind when it comes to marketing and bringing in funds. Tesla Motors is a motor vehicle company that is different from the rest. They provide much more environmentally friendly cars with next level technology, and they market themselves in very unique ways and therefore their success in the stock market will continue to grow.…

    • 1080 Words
    • 5 Pages
    Improved Essays
    Read More
  • Superior Essays

    Tesla Core Competencies
    • 1392 Words
    • 6 Pages

    Tesla Core Competencies

    has unique resources and core competencies which help the said organization achieve competitive advantage over other companies. According to Shahan (2015), Tesla’s huge competitive advantages are as follows: (i) the batter supply chain is building for itself; (ii) its wonderful supercharger network; (iii) its software is several leagues above the competition; (iv) it has a reputation of building superb products that amaze people; and (v) it has a want to serve customers in a direct and honest way. One unique resource of Tesla is its batteries. These batteries are routinely estimated to be a good tier cheaper than other EV batteries (Shahan 2015). The company constantly works to improve its batteries over time and the latter are valuable far beyond electric vehicles. It is of but consideration that consumers want ubiquitous fast-charging stations (Shahan 2015) and Tesla was able to build its own supercharger network which is incomparable. Another competency of Tesla is that fact that its approach to software is a tier above the competition (Shahan 20215). The usual cars were big machines with small computers in them. However, the future poses a possibility that care are going to be computers on wheels and this is where Tesla is leading the transportation system. With an electric car, the improvement capabilities that come from better software are beyond what one can imagine (Shahan 2015). Aside from the tangible ways that Tesla has able to set apart itself from the competition, there are couple of "intangible" strengths that the company was able to develop. This "intangible" strength is how Tesla amazes people with its products (Shahan 2015). The Tesla Roadster was able to transform the image of electric cars form small, slow vehicles to blindingly fast vehicles people desire. Furthermore, Tesla was able to produce cheaper Model S sedan that ended up winning just about every big auto award (Shahan 2015). Such reputation of excellence made Tesla…

    • 1392 Words
    • 6 Pages
    Superior Essays
    Read More
  • Improved Essays

    Tesla Strategy Analysis Essay
    • 1691 Words
    • 7 Pages

    Tesla Strategy Analysis Essay

    There is no use denying the fact that being a company that tries to capture the market Tesla motors devote great attention to the strategy that could help to achieve the given purpose. First of all, one of the main points of the strategy is attraction of customers. That is why, Tesla devotes its efforts to various advertisement companies (Ottaway, 2015) trying to increase customer interest and attract more people. At the same time, the company tries to exclude dealer pressure from the process of sales by providing trainings for sales persons, who will be able to work with customers better.…

    • 1691 Words
    • 7 Pages
    Improved Essays
    Read More
  • Great Essays

    Tesla's Strategic Decisions
    • 1161 Words
    • 5 Pages

    Tesla's Strategic Decisions

    Tesla’s strategic decision is to make use of its proximity to the markets in terms of resources. Their marketing mix includes establishing global company owned stores and galleries in key locations in order to capitalize on sales and productivity and access to the target market. Tesla’s distribution strategy was also to sell vehicles directly and also to provide them with after sale service through their sales galleries and service centers.…

    • 1161 Words
    • 5 Pages
    Great Essays
    Read More
  • Improved Essays

    Tesla In China Case Analysis
    • 1059 Words
    • 5 Pages

    Tesla In China Case Analysis

    The first thing they need to do is to tell customers what an electric car is, a so-called "primary concern," and then talk to customers about what a Tesla car is. This is because an electric vehicle is a new thing and even now not a lot of people are using the electric vehicles. The most customer just knows the name of the electric car but the consumers don't know really the about electric car's knowledge. Tesla must first cultivate consumer's perception of electric vehicles to let consumers understand, why so much for Tesla and what is the reason behind. There are no cars dealers are willing to spend so much effort to get consumers to know electric cars, which can only be done by the Tesla…

    • 1059 Words
    • 5 Pages
    Improved Essays
    Read More
  • Superior Essays

    Objectives Of Tesla Motors
    • 1360 Words
    • 6 Pages

    Objectives Of Tesla Motors

    Founded in 2003, Tesla is a relatively new company that has had a variety of problems with their solvency. Although they were able to survive due to their continuous investment from investors, (Brooke Crothers 2015, para 4) states that Tesla loses more than $4000, per Model S sold, which shows the difficulties of creating a cost efficient product in niche market. Additionally, Tesla’s survivability is explained by (Boris Marjanovic, 2016, para 4), that Tesla can only sustain itself for another six to eight months if they sustain their ‘cash position of $1.2 billion and an estimated monthly cash burn rate of $150 million’. Although these figures show, Tesla 's short term insolvency, due to big investments into their operations, it shows that it is difficult for businesses to simultaneously achieve their economic and environmental responsibilities. In conclusion, for all, for-profit businesses their early stages of operations are geared towards achieving their economic line before taking in considerations of their social and environmental…

    • 1360 Words
    • 6 Pages
    Superior Essays
    Read More
  • Improved Essays

    Microsoft Ballmer And Nokia Essay
    • 1827 Words
    • 8 Pages

    Microsoft Ballmer And Nokia Essay

    Even though the report isn’t that damaging to Tesla, it is important to takeaway from this that investors reacted extremely negatively. Tesla's share price fell 11% in intraday trading, from $227 to $202. While the share price slightly rebounded by the end of the day, it edged lower on the next day and is currently trading at $230/share. To clarify the reaction to this report and understand the broader implications of other negative news for Tesla, instead of looking toward a rational basis for Tesla’s valuation, it’s more instructive to search explanations from behavioral…

    • 1827 Words
    • 8 Pages
    Improved Essays
    Read More
  • Great Essays

    Adequacy Of Productivity And Operations Management In The Case Of Tesla
    • 936 Words
    • 4 Pages

    Adequacy Of Productivity And Operations Management In The Case Of Tesla

    Tesla’s Measures of Productivity. Tesla measures their productivity bases on their automobile production. The company utilize certain productivity criteria for its corporate office operations management. Below are some of the measures that determine Tesla's productivity:…

    • 936 Words
    • 4 Pages
    Great Essays
    Read More
  • Improved Essays

    Case Study: Elon Musk
    • 1369 Words
    • 6 Pages

    Case Study: Elon Musk

    Vertical integration involves being present for multiple stages of production. The results of this integration leads to high capital costs. In order to increase profitability, Musk may be inclined to halt his never-ending pursuit towards futurism. Tesla Motors is still not a household name, it is ultimately a luxury brand and as a result, the population is still not sold on his vision for an advanced future (Vance, 2015). Musk should dedicate more of his budget away from R&D and more towards exposing his company towards domestic and foreign markets. This would quell consumer suspicions towards the energy change, and give even greater investor confidence to fund his future projects (Vance, 2015). By increasing customer demand, expectations for the company would be better tailored towards increased production of his products, an issue he already foresaw and addressed by acquiring Solar City and creating the Giga factory. The implementation of the Giga factory may reduce production costs by over 30%, addressing one of the primary issues faced by his unified field of companies (Vance, 2015). Finally, addressing the globalization concerns is key to Musk’s success. China is transitioning into clean-energy but it is an uphill battle (Korosec, 2015). However, the barriers to entry in China are much higher than in the domestic market (Korosec, 2015). Musk believes that the failure to properly establish a foothold in China stems from their perception of the charging stations (Korosec, 2015). This is because the infrastructure of China, little to few garages and multiple parking decks, does not easily support charging stations (Korosec, 2015). In order to increase profitability, Musk should dedicate more of his capital towards establishing a network of electric vehicle chargers in both the parking garages and residential buildings (Korosec, 2015). By establishing a production factory there, Musk…

    • 1369 Words
    • 6 Pages
    Improved Essays
    Read More
Ready To Get Started?
Discover
Company
Follow
©2023 Cram.com
Privacy Policy |  About Ads |  Site Map |  Advertise  | 
  • Cookie Settings