Topics: Automotive industry, Lotus Cars, Tesla Motors Pages: 3 (1107 words) Published: April 23, 2014
Importance of socio cultural factors in Tesla Motors Inc. Case Entrepreneurship
In term of entrepreneurship, Tesla Motors has learned the importance of outsourcing, collaboration and knowledge sharing. Tesla Motors was able to see the need for collaboration very early in both their development processes (battery first, then EV). As mentioned before, Tesla Motors is not a normal car manufacturer. Tesla Motors is the Silicon Valley-form of a company. Tesla Motors also imports executives and management ideas from the technology industry. Tesla Motors also is handing out stock options to every single employee, not getting involved with independent dealers and outsourcing the manufacturing of the cars. The corporate culture in Silicon Valley is extremely efficient and very competitive. Inside Tesla, all the top executives, except the chairman Musk, are placed and working together in small, cheaply decorated offices. This is convenient since they are all working closely together and if any big decisions need to be taken, no one need to schedule big meetings, write up proposals or go through many chains of command . It takes 4 years for a big established car manufacturer to develop a new car model. In that duration of time, Tesla Motors has created a brand new company and a new car model ready to be sold on the market. Although the new car model is ready to be sold, the founders had no experience at all from the auto industry when they decided to create the world’s first high performance electric car. Both Eberhard and Tarpenning believe that many entrepreneurs like themselves have great ideas and good intentions but are too inexperienced to succeed. Instead of creating a car from scratch, he took the advantage of outsourcing. A design competition was set up in the fall of 2004 for the final styling of the car and four different designers competed. Lotus Design Studio won. The judges of the competition were the 15 employees of Tesla Motors at that time. The newly...
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