Preview

Tesla Motors: External Analysis

Powerful Essays
Open Document
Open Document
2132 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Tesla Motors: External Analysis
EXTERNAL ANALYSIS

TESLA MOTORS

_Prepared For:_

PEPPERDINE UNIVERSITY

STGY 659.65

STRATEGIC MANAGEMENT

Prepared By:

Daniel Aleksander

Andrew Beckman

Jeanette Gonzales

Jeremy Jay

September 26, 2014

INTRODUCTION

Tesla Motors, headquartered in Palo Alto, California, is a United States (US) based company that designs, manufactures, and sells electric vehicles globally. The company is traded publically on the NASDAQ with a market capitalization of $30.8 billion. Under the leadership of CEO, Elon Musk, the company seeks to provide a variety of high performance electric vehicles (EVs) to consumers in the near future. The following is an external analysis of Tesla Motors.

STRENGTHS

One of Tesla 's greatest strengths involves optimizing cost advantages associated with building economies of scale. Making batteries in massive volumes is a key part of Musk 's plan to drive down unit costs so that electric cars can become affordable to a much larger market. Tesla plans to cut battery pack costs by 30%, which will hit the target price of $35,000 for its third-generation vehicle. Musk is doing this by building a giant battery plant in Nevada, referred to as the "Gigafactory." In addition, Tesla is targeting to market large-scale electricity storage systems used by power companies, where low unit costs are also a key competitive factor.

Tesla has utilized its reputation in the industry as a strength and has struck deals with other strong companies to form agreeable partnerships. In June 2014, the company announced a partnership with Panasonic that involved the production of lithium ion cells inside the facility for inclusion in Tesla 's battery packs. In April 2014, China Unicom (Tesla 's first retail partner) agreed to install charging stations for Tesla 's EVs at hundreds of retail outlets nationwide. As a part of the agreement, Tesla will provide charging points for installation at 400 China Unicom retail outlets in 120 cities; China Unicom will provide


References: "Electric Cars: BMW versus Tesla." Financial Times. Pearson PLC, 18 July 2014. Web. 25 Sept. 2014. <http://www.ft.com/cms/s/3/980f3c54-0c1c-11e4-a096-00144feabdc0.html?siteedition=uk#axzz3DzmcXhDp>. Hirsh, Evan, Steve Headlund, and Mark Schweizer. "Reality Is Perception: The Truth about Car Brands." Strategy+business. N.p., Fall 2003. Web. 22 Sept. 2014. http://www.strategy-business.com/article/03302?pg=all Loveday, Eric Mitchell, Tom. "Tesla Strikes Deal with China Unicom to Build Charging Network." Financial Times. Pearson PLC, 29 Aug. 2014. Web. 25 Sept. 2014. <http://www.ft.com/cms/s/0/594063da-2f63-11e4-83e4-00144feabdc0.html#axzz3DzmcXhDp>. Musk, Elon. "The Secret Tesla Motors Master Plan (just between You and Me)." Tesla Motors, 2 Aug. 2006. Web. 22 Sept. 2014. http://www.teslamotors.com/fr_CH/blog/secret-tesla-motors-master-plan-just-between-you-and-me Platt, Eric Sanchez, Karla, and Jason Udy. "Top 20 Best-selling Vehicles of 2014, so Far."MSN Autos. Motor Trend, Spring 2014. Web. 22 Sept. 2014. http://editorial.autos.msn.com/top-20-best-selling-vehicles-of-2014-so-far#7 "Tesla: High times." Financial Times "Tesla: Room to Vroom?" Financial Times. Pearson PLC, 1 Aug. 2014. Web. 25 Sept. 2014. <http://www.ft.com/cms/s/3/c401947c-1911-11e4-80da-00144feabdc0.html#axzz3DzmcXhDp>. Waters, Richard. "Tesla Plans Massive China Expansion." Financial Times. Pearson PLC, 31 July 2014. Web. 25 Sept. 2014. <http://www.ft.com/cms/s/0/aec36734-18f3-11e4-80da-00144feabdc0.html#axzz3DzmcXhDp>. Waters, Richard. "Tesla to Gamble on Nevada Electric Car Plant." Financial Times. Pearson PLC, 3 Sept. 2014. Web. 25 Sept. 2014. <http://www.ft.com/cms/s/0/7236bd5c-33a6-11e4-ba62-00144feabdc0.html?siteedition=uk#axzz3DzmcXhDp>. Yahoo Finance. Industry Center - Auto Manufacturers - Major. Web accessed September 22, 2014. http://biz.yahoo.com/ic/330_cl_pub.html C:UsersJeanetteDocumentsPepperdineOTMT 670Team ProjectOTMT 670 Organizational Analysis Paper_V.2.docx 2ii
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Mkt 421 Final Exams 2 Essay Example
    • 2904 Words
    • 12 Pages

    Mkt 421 Final Exams 2 Essay Example

    2) For Tesla, a new firm that makes an electric sports car, estimating how many competitors will make electric vehicles and what kinds they will make, is:…

    • 2904 Words
    • 12 Pages
    Good Essays
    Read More
  • Powerful Essays

    Week 5 Learning Team Eco 365 Essay Example
    • 1892 Words
    • 8 Pages

    Week 5 Learning Team Eco 365 Essay Example

    Fuel efficient and eco-friendly vehicles are among the recent consumer trends within the automobile industry. The risk of new carmakers entering the marketplace is relatively low because of the high economic and political barriers that exist in this industry. A recent example of a company who has succeeded in entering the marketplace with a new product is Tesla Motors. The car company is still in its infancy; however, they have designed and delivered several all-electric vehicles to the marketplace using a platform they created.…

    • 1892 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Good Essays

    Mkt 421 Final Exam
    • 2828 Words
    • 12 Pages

    Mkt 421 Final Exam

    2) For Tesla, a new firm that makes an electric sports car, estimating how many competitors will make electric vehicles and what kinds they will make, is:…

    • 2828 Words
    • 12 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    MIS 140 indiv
    • 258 Words
    • 1 Page

    MIS 140 indiv

    In the article “The Making of Tesla”, published by Drake Bauer (Business Insider, Nov. 11, 2014). , the author talks about the success of Tesla and many major factor that came along different obstacles penetrating into the car industry as a fully electric-operated vehicle. Furthermore, the author also mentioned the issues within the Tesla vehicles that put the company in the real test of surviving against gargantuan American car manufacturers like Ford. Despite all the doubts and setbacks, Tesla Motors humiliated car analysts by being able to be a profitable electric car industry and develop different models for its vehicles like the Tesla Roadster while simultaneously beating its major competitors on market shares.…

    • 258 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Better Essays

    Tesla Final Paper
    • 1309 Words
    • 6 Pages

    Tesla Final Paper

    Tesla’s mass-market ambitions on charge SummaryThis article discusses the different aspects of Tesla’s rise to prominence and the electric car manufacturer’s strategies for maintaining its status. This profile of Tesla’s roots and its prospects for the future touch on the following topics: niche market competition; financial obstacles in the past, present and future; and production techniques.I. Product DifferentiationIn this section, product differentiation, which is the process of distinguishing a product or service from others to make it more attractive to a particular target market, will be discussed. Since it first introduced the Model S to consumers in 2012, Tesla has been the premier producer of luxury…

    • 1309 Words
    • 6 Pages
    Better Essays
    Read More
  • Powerful Essays

    Tesla and Gm Proposed Merger
    • 9208 Words
    • 37 Pages

    Tesla and Gm Proposed Merger

    Conversely, Tesla’s can utilize GM’s manufacturing facilities and distribution channels to exercise economies of scale and achieve their goals of making electric…

    • 9208 Words
    • 37 Pages
    Powerful Essays
    Read More
  • Good Essays

    Executive summery of Tesla Motors. Inc
    • 1219 Words
    • 5 Pages

    Executive summery of Tesla Motors. Inc

    Tesla Motors is a public trading company in the automotive industry that was founded in 2003 by a group of engineers from the Silicon Valley in California. Core founders of Tesla Motors are Elon Musk, Martin Eberhard, Marc Tarpenning, JB Straubel and Ian Wright. Its headquarters are in Palo Alto, California. The CEO of the company is Elon Musk. It has over 3000+ employees. Tesla motors have their cars in thirty seven countries worldwide and continuously expanding. Tesla also opened an assembly and distribution centre in 2012 for all of Europe in Tilburg, Holland. This factory will house between 50-60 jobs starting off with room for growth depending on sales. Having a European base cuts down on transport cost making the Tesla product cheaper to purchase.…

    • 1219 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    Why Is Tesla Cars Better
    • 910 Words
    • 4 Pages

    Why Is Tesla Cars Better

    Why Tesla Is a Better Car Tesla is a major American automaker car company that has been in existence since 2003. The company deals in designing of different car models; the company specializes in electric vehicles which are common. Roadstar is the first model that was developed by the corporation, and it was well accepted by many people across the world. Celebrities are among the people who promoted the company stating that Tesla cars are the best because they come up with best designs than any other company across the globe. Tesla engineers first developed a powertrain for sports cars which is built around an AC induction motor.…

    • 910 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    David Vs Goliath
    • 1177 Words
    • 5 Pages

    David Vs Goliath

    For Tesla to become and remain one of the great companies of the 21st century, we must have an environment that is as safe, fair and fun as possible. It is incredibly important to me that you look forward to coming to work every day. For that, we must be a fair and just company – the only kind worth creating.…

    • 1177 Words
    • 5 Pages
    Good Essays
    Read More
  • Powerful Essays

    Who Killed the Electric Car
    • 1775 Words
    • 8 Pages

    Who Killed the Electric Car

    This film is targeted towards GM shareholders, those who are interested in electric vehicles, or have questions or concerns about global warming, dependence on foreign oil, air pollution or the environment, so Paine primarily focuses on the fate of General Motors’ EV1 electric car. The EV1’s were introduced to the California market in 1996 in response to California’s Zero Emissions Vehicle (ZEV) legislation. California was in a pollution crisis. The amount of smog in the air threatened public health. The California Air and Resource Board (CARB) targeted the source of the problem, auto exhaust. The ZEV legislation required two percent of vehicles sold in California to be emissions free by 1998 and ten percent of the cars sold in California to be emissions free by 2003. With this new legislation, the reemergence of the electric car, a vehicle that was once popular in the thirties, began. Before this legislation General Motors had previewed an electric car, the Impact. Because it had flaws such as a low maximum speed, and low mileage per charge, it wasn’t popular. In 1996, General Motors introduced the Impact…

    • 1775 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Good Essays

    Tesla Motors
    • 948 Words
    • 3 Pages

    Tesla Motors

    Elon Musk successfully established Tesla Motors as one of the leaders in the electric vehicle industry since his induction as CEO in 2008. Tesla Motors designs, manufactures, and sells electric cars and powertrain components. The company also provides services for the development of powertrain systems and components, and sells electric powertrain components to other automotive manufacturers. It markets and sells its vehicles through Tesla stores as well as over the internet (Mora 2014, 1). Consumers and companies are looking to save at the pump, and what better way to do so than with electric vehicles (Mora 2014, 1)? Through government support and raised capital, Musk has put Tesla in an advantageous position to capitalize on the growing electric vehicle market. Battery electric vehicles will increase at a 31.5% compound annual growth over the next seven years (Navigant Research 2013). With Musk’s leadership and innovation, Tesla plans on boosting sales by increasing current production of the Model S, introducing the Model X SUV in 2015, and introducing the more affordable Gen III by 2017 (Recharge Now, Forbes 2013).…

    • 948 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Internal and External Analysis of Tesla
    • 514 Words
    • 2 Pages

    Internal and External Analysis of Tesla

    In addition, some intangible strengths of Tesla are its leadership, drive for innovation, and customer service. Tesla is run by Elon Musk, a man driven for success, and also has capital to support the company. Tesla is the first car of its kind, and hopes to continue to deliver quality products. Tesla hopes to be among the first to offer an auto-pilot car. Soon they will be launching their Model X, an SUV of equal quality to the Model S. In the near future Tesla is looking to launch a pick-up truck as well. Tesla offers quality customer service, if ever there is problem Tesla representatives will quickly arrive to pick up your car and leave you edition of the Model S, while yours is quickly repaired. Tesla plans to deliver the best cars in the world, and so far they are succeeding.…

    • 514 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    1www
    • 503 Words
    • 3 Pages

    1www

    Just entering the automotive industry in 2003, Tesla themselves are facing the challenges of being the new entrants into the market. A high capital is required to begin any business expenditure. Tesla is not expected to become profitable for another 18 months (Taylor, 2011). There is a relatively low barrier to entry due to the higher demand for environmental friendly vehicles and with other outlets for available technology for lithium-ion batteries, it is a level of playing field where any company can replicate (Shirouzu,2011). This is an external threat that Tesla faces because this technology is easy to imitate by competitors.…

    • 503 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    BPMN 6023
    • 3173 Words
    • 10 Pages

    BPMN 6023

    Tesla Motors, Inc. is an American company that was founded in 2003 by a group of brilliant and innovative Silicon Valley engineers. These engineers proved that electric vehicles could be awesome substitute of the gasoline powered cars. Tesla not only designs, produces and markets electric cars, but it also provides advance electric vehicle powertrain components to other automakers including Daimler and Toyota. (Tesla Motors) Tesla headquarters is located in Palo Alto, California, and it has wholly-owned subsidiaries in North America, Europe and Asia. At present, Tesla has more than 2000 employees. It has 31 stores and service locations spread worldwide, and more stores are expected to be opened in the future. In 2012, Tesla opened its first store in Toronto as the first step to enter the Canadian market (Tesla Motors). Tesla aims to offer high-performance and electrically powered vehicle at a price affordable to the average consumer. In 2008, Tesla first gained widespread attention by producing the Tesla Roadster, a solely electric operated sports car. Tesla then expanded its technological advantage to the luxury sedan market. Model S, a zero emission and sustainable luxury sedan, was then introduced as their second vehicle to the electric vehicle in 2012. The third model named Tesla model X is scheduled to be delivered to the market in 2014 and Tesla is the only automaker that sells zero-emission sports cars in serial production at present.…

    • 3173 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Power Battery Management System Industry Global and China for 2014-2017
    • 663 Words
    • 3 Pages

    Power Battery Management System Industry Global and China for 2014-2017

    Meanwhile, the battery vendor LGC has established cooperative relationship with GM, Ford, Volvo and many other enterprises by providing power battery packs and related BMS to them. As for automobile companies, Tesla performs remarkably with advanced BMS technology. In contrast, professional BMS firms develop relatively slower due to technical and financial factors.…

    • 663 Words
    • 3 Pages
    Satisfactory Essays
    Read More

Related Topics