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Tesla Motor, Inc

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Tesla Motor, Inc
Tesla Motor, Inc. possesses a variety of issues that impact their company’s potential to be successful. The current issues that are impacting Tesla Motor, Inc.’s ability to be successful is that they’re only creating electric sports car, the Tesla Roadster and Model S, their administrative system is unstable and their company is in major debt. The decisions and actions by the Managers that lead to the problems confronting the company is that their administrative system is unstable, which leads to not having a secure decision on their products for the business. The company had to go through many CEOs until they have someone who can make a big impact on the company. The article states that “In August 2007, Martin Eberhard was replaced as CEO by interim CEO Michael Marks, who was then replaced in December 2007 by Ze’ev Drori as CEO. In October 2008, Elon Musk succeeded Drori as CEO and Chairman of the Board. Musk was not a full-time CEO. “
Opportunities
• Because the price of gasoline and oil are increasing, customers may consider into buying an electric car since the price for an electric car is not such a big problem
• Having a variety of models, instead of just creating sports cars, and that could be more suitable in the automotive market
• Consider in collaborating with other battery companies to have advanced battery technology
Threats
• A company possibly develops a vehicle that uses other natural resources such as natural gas, hydrogen powered cars, or ethanol
• Strong automobile companies, such as GM, Ford, Toyota, and Honda entering the industry with hybrid electric cars (Toyota Prius, Ford Fusion, GM Volt, and Honda Civic Hybrid Sedan)
• People will change their minds about wanting to get an electric car when gas/oil prices lower.
Industry Analysis/Task Environment Using Michael Porter’s competitive strategy, the company can be evaluated the as “high, medium or low” in the five areas: “Potential entrants, buyers, substitutes, suppliers, and
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