Tesla Case Stydy

Topics: Tesla Motors, Electric car, Tesla Roadster Pages: 3 (915 words) Published: November 14, 2012

Tesla Motors is one of the leading producers of electric cars and electric powertrains in the world. Founded in 2003 and based out of Palo Alto, California, Tesla is currently in 37 countries worldwide. Tesla currently produces 3 models, the Roadster, Model S, and the Model X. A primary issue Tesla faces is the steep prices of all three models. The least expensive model is the Tesla model S. It’s cheapest option begins at $57,400. Many experts believe that for Tesla to be successful, they will need to produce a model closer to the $30,000 range. Other critics focus on the issue of a possible takeover, or the company’s lack of liquidity options. Lastly there is the issue of global expansions. Tesla hopes to increase their number of stores worldwide by 50 throughout the next several years creating an annual cost of roughly 5-10 million dollars. Although Tesla faces ever increasing pressure to develop a more inexpensive model, I personally believe this is not the correct option. Tesla Motors offers top end, luxury vehicles that provide the distinct advantage of electric power over Tesla competitors in an industry that is moving more and more in that direction. Tesla competes against top end, automakers such as Maserati, Jaguar, Aston Martin, and Porsche. All of these competitors are internationally renowned, high end, high brand recognition companies. To be successful I suggest, Tesla focuses on their continued international expansions and marketing to created a world-renowned, top class product that incorporates their primary strength of electrically powered vehicles.


When looking at Tesla and analyzing them as a company in the long term, there is a great deal of upside, with minimal downside. According to New York Times writer Bradley Berman, The Tesla Model S, with the biggest available battery pack (85 kilowatt-hours), has an E.P.A.’s rating for equivalent gasoline miles per gallon of 88 miles per gallon equivalent...
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