Evaluating the Efficiency of Tesla Motors Inc.
Nowadays, efficiency considerations are an integral part of corporate planning. For different types of companies, there are always some different perspectives which make them efficient. According to Nordqvist (2014), Tesla Motors Inc. is an American company built in July 2003 by Martin Eberhard and Marc Tarpenning. The company focuses on design, developing manufactures, and selling electric cars and electric vehicle powertrain components. Although there are many perspectives that make Tesla Motors efficient, this essay will analyze three of these perspectives, comprising using new energy, IT system and supply chain. In this essay, the efficiency of using new energy will be analyzed first, followed …show more content…
Tesla has a huge supply chain in the whole world, which makes them purchase the products arbitrarily. Tesla uses its supply chain to transform its production accessories and products from one side to the other side of the earth. The supply chain of Tesla is a combination of ground transportation, air transport and shipping. Tesla must invest much capital in its supply chain system to make it work properly, resulting in the rising costs of the company. However, this supply chain is energy conservative and efficient for Tesla. According to Michael (2013), Tesla produced 20,000 cars in 2013, and the most important fact was that Tesla managed to speed up manufacturing by opening supply chains worldwide. Supply chain not only transports the car parts from one country to another, but also offers the company an opportunity to get more resources from all over the world in the shortest period of time. These globe-spanning supply chains make the company get maximum benefits through rapid transit. For example, Tesla built a large number of battery packs in Thailand, and then shipped them to Britain for quick installation; after that it brought the mostly assembled cars back to the United States. In addition, the other influence of supply chain is that there is absolutely no inventory of Tesla, which means if people want to buy a Tesla Model S, they need to order it online first, and then the …show more content…
Although there are some bad effects, all these perspectives demonstrated the efficiency of Tesla clearly at last. The efficiency of a company can gain greater profits, which is good for its future development. For Tesla, the costs of batteries are still enormous, so the company should focus on developing new battery technologies at this moment. The new battery may store more electrical energy at low costs. By using a new battery technology, the company will save a considerable amount of money and the price of new vehicles will be significantly reduced. Then Tesla could build a more affordable car with better performance in the
Nowadays, efficiency considerations are an integral part of corporate planning. For different types of companies, there are always some different perspectives which make them efficient. According to Nordqvist (2014), Tesla Motors Inc. is an American company built in July 2003 by Martin Eberhard and Marc Tarpenning. The company focuses on design, developing manufactures, and selling electric cars and electric vehicle powertrain components. Although there are many perspectives that make Tesla Motors efficient, this essay will analyze three of these perspectives, comprising using new energy, IT system and supply chain. In this essay, the efficiency of using new energy will be analyzed first, followed …show more content…
Tesla has a huge supply chain in the whole world, which makes them purchase the products arbitrarily. Tesla uses its supply chain to transform its production accessories and products from one side to the other side of the earth. The supply chain of Tesla is a combination of ground transportation, air transport and shipping. Tesla must invest much capital in its supply chain system to make it work properly, resulting in the rising costs of the company. However, this supply chain is energy conservative and efficient for Tesla. According to Michael (2013), Tesla produced 20,000 cars in 2013, and the most important fact was that Tesla managed to speed up manufacturing by opening supply chains worldwide. Supply chain not only transports the car parts from one country to another, but also offers the company an opportunity to get more resources from all over the world in the shortest period of time. These globe-spanning supply chains make the company get maximum benefits through rapid transit. For example, Tesla built a large number of battery packs in Thailand, and then shipped them to Britain for quick installation; after that it brought the mostly assembled cars back to the United States. In addition, the other influence of supply chain is that there is absolutely no inventory of Tesla, which means if people want to buy a Tesla Model S, they need to order it online first, and then the …show more content…
Although there are some bad effects, all these perspectives demonstrated the efficiency of Tesla clearly at last. The efficiency of a company can gain greater profits, which is good for its future development. For Tesla, the costs of batteries are still enormous, so the company should focus on developing new battery technologies at this moment. The new battery may store more electrical energy at low costs. By using a new battery technology, the company will save a considerable amount of money and the price of new vehicles will be significantly reduced. Then Tesla could build a more affordable car with better performance in the