Essays on Tesla Motors Inc Environment Analysis Case Study

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The paper "Tesla Motors Inc Environment Analysis" is a good example of a business case study.   Tesla Motors is an American company that specifies on design and production of electric vehicles and vehicle powertrain parts. Two Silicon Valley engineers, Marc Tarpenning and Martin Eberhard came together to establish Tesla Motors in July 2003. Later a third engineer Ian Wright joined the fold. Due to insufficient capital, Elon Musk joined and invested in the company. The belief for the engineers was that it was feasible for an electric car to be produced while for Musk belief was that the company would be a general motor company with different car models.

The company headquarters is in Palo Alto, California with several other subsidiaries around Europe, Asia, and the other North American States. The Tesla Roadster was the first vehicle to be produced by the company and was introduced to the market in 2008 (Karamitsios, 2013). The company borrowed Tesla Roadster’ s design directly from the original design of 1882 by Nikola Tesla. Model S Sedan cars were introduced to the market in June 2012 and by the end of the same year, approximately 2650 vehicles were sold to customers.

The Model S car was the most awarded car in 2013. In the second half of the financial year 2015, Model X was introduced to the market. Model x is a crossover SUV that carries seven passengers (Gamble et al. , 2015). Tesla through its CEO Elon Musk has a strategic mission, vision, and goals. The vision and goals of the company's strategies are to bring to the market a wide range of electrically powered vehicles that are affordable to the consumer.

Second, become a world leader in the production of electric vehicles that are of high performance and premium quality. Finally, accelerate the transition from vehicles using gasoline to generate power to electric vehicles with zero emissions. For Musk, he projected that by the end of 2020, the company should be able to sell approximately half a million vehicles annually. The mission and vision were to use the innovation of battery technology to transform the global automotive industry to electric vehicles. With success in this strategic plan, the company’ s competitive position is to be improved and the market share would grow substantially especially since the position of EVs in the market in 2025 would be different compared to 2017. The Company’ s Management Include Elon Musk- Chief Executive Officer and Product Architect. Deebak Ahuja- Chief Financial Officer JB Straubel- Chief Technical Officer Jay Vijavan- Chief Information Officer Franz Von Holzausen- Chief Designer Gilbert Passin- Vice President, Manufacturing Department Jerome Guillen- Vice President, Marketing: Global Sales and Services. Financial Position The two partners Tarpenning and Eberhard financed Tesla Motors on their own until February 2004 when the first investor funding was fueled into the company.

The current CEO Elon Musk put in $6.35 Million to become the majority shareholder in the initial company funding. The second round of funding was put in at $13 Million shortly after the first round of funding. In 2006, the third round of funding which was approximately $40 million was put into the company. An additional $45 million in May 2007 as capital for new investments. In 2008, investment capital amounting to $145 Million was raised. The company struggled in 2009 and sold some of its shares to Daimler AG at a reported $50 Million.

Further funding was acquired in the same year through low-interest loans from the United States of America Energy Department. Tesla Motors became a public company in 2010 and trades on NASDAQ stock exchange was able to raise $226 from the sale of its shares (Gamble et al. , 2015). Tesla uses the symbol TSLA in the stock exchange market.

References

Gamble E., Peteraf, A. M. & Thompson A., 2015. Essentials of Strategic Management: A Quest for Competitive Advantage. 5th edition. McGraw-Hill Education: New York.

Karamitsios, A., 2013. Open Innovation in EVs: A Case Study of Tesla Motors. Sweden.

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Mangram, M. E., 2012. ‘The globalization of tesla motors: a strategic marketing plan analysis,’ Routledge, vol. 20, no. 4, pp.289-312.

Mark, K., 2013. ‘Suppliers to the 2013 Tesla Model S,’ Supplier Business. Accessed from: http://www.autonews.com/assets/PDF/CA843311210.PDF. [21 May 2017].

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