Tesla's Risk and Limitations

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Risks and Limitations
Tesla stands to lose momentum in its culture if the proposed solution fails, so it is important to address a few of the risks and limitations. The company must avoid major culture degradation if it wants to remain relevant in the luxury car industry. Tesla’s “cool factor” culture and state-of-the-art technology has made an impression in the United States. However, will the company be able to maintain this excitement when expanding? Tesla will most likely face some degree of cultural inertia. The culture of, say, Germany or China may not mesh particularly well with the one that intrigued Californians. Germany, with its penchant for efficient, powerful technology and a slew of luxury car juggernauts, may easily be less impressed with Tesla’s design or its “cool factor”. In order to mitigate this potential problem, Tesla needs to careful when promoting senior members to other countries. They must be ready and willing to adapt to other cultures in a manner that avoids conflict. To eliminate culture clashing, Tesla should try to “merge” the two cultures in a way that maintains Tesla’s most prominent features while including positive aspects of the foreign culture as well. A second risk of the proposed solution stems from employees’ resistance to change. In the United States, Tesla employees do not mind working long, intense hours because they enjoy and believe in their work. If given the chance for a promotion, however, the employees may resist if they are asked to relocate or take on new responsibilities. Secondly, not all of the passionate seniority, even the ones that have worked with the company since the beginning, possess the leadership abilities or the adaptability to fulfill Tesla’s new positions. The hiring and promotion process must be meticulous in order to find appropriately talented and hard-working individuals that approach the proposed solution with enthusiasm. The research method, which includes five interviews, an employee...
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