Tesla And Its Impact On The Car Industry Essay
Tesla right now has sold 10,500 cars in the first half of 2013 and is expected to sell more next year. Total revenues are 560 million and net income is more than 10 million dollars. These are numbers that will continue to grow to take up more and more market and BMW needs to fully understand how Tesla is now in this position. It is very important that BMW understands both from a strategic viewpoint and execution viewpoint, how to best counteract this sudden rise in a potentially dangerous rival. Once this strategic plan is carefully crafted, BMW will be in a better position to respond and position the company to maintain its footprint in the car industry.
The path to an award-winning EV
Tesla utilized their cost structure in many ways. First, to enter into the car manufacturing industry, the typical price tag could range anywhere between 3-5 billion dollars. but tesla’s recent puechase of the NUMMI plant in Fremont, California, which has the full capacity of producing 500,000 cars, only costed 42 million instead of I billion dollars. There was also a cooperation agreement signed between Toyota and Tesla potentially giving the company access to much-needed car engineering expertise and know-how in addition to the 50 million dollar injection. Tesla also bought the majority of their production equipment from other manufacturers in Detroit, such as a $50M hydraulic stamping press that was bought for only $6M.
Secondly, Tesla decided to move production…