Professional Documents
Culture Documents
In 2013
Martin Eberhard was serial enterprenuer who had launched a number of start up , including
a company called Nuvo Media who sold in $187 million
Eberhard was looking for a sport car that would be environmentally friendly car as the
Usa dependence on Middle East for Oil
Eberhard began to consider a range of alternative fuel options of his car :hydrogen fuel
cells ,natural gas diesel
Eberhand lucky meet the Al Cocooni Founder of the AC propulsion and one of the original
concern engineers for GMs had concluded
History
Elon Musk was a 31 year old south African who founded a company that ulimately become a
PayPal and then company was sold to Ebay in 2002 for $1.5 billion
Like Eberhard musk thought electric cars were the key to US achieveing energy
interdependence and the approached Coccani about buying the Tzero
Tom Gage who was then the AC propulsions CEO suggested that Musk Collaborate with
Eberhand
After 2 hours of the meeting in Feburary 2004 Musk agreed to fund Eberhards plans with 6.3 $
million . He would be the companys chairmans and Eberhard would be CEO
Development
The first Testla prototype named as the Roadster was the roadster was based on the $45,000
lotus Elise a fast and light sports car that seemed perfect for creation of the eberhand and
musk idea
The car would be 400 volts of the electric potential liquid cooled lithium ion batteries and
series of silicon transistor that would be give a car acceleration so powerful driver would be
pressed back against their seat
Growth
By 2008 the morale of the company was high at the all time . Production problems had
been forgotten as the first seven Roadsters hit the road
The most ambitious project did not stop niche high end car . Testla announced the
Model S a high performance all electric sedan that would be sell for the price of
ranging from $57,400 to $77.400 and compete against the cars like BMW 5 series
Growth
Model S 500 million to develop however offering that cost was a $465 million loan from
tesla received from U.S government to build
In May 2012 Tesla reported that it already had 10,000 reservation for the customers hoping
a buy the Model S and Musk claimed that company would soon sell 20,000 model s were
more smoothly than that of Roadster
Testla bought a recently closed automobile factory in Fremont Calfornia that had been used
for New United Motor Manufacturing Inc venture between toyota and General Motors
Growth
Testla also used the factory to produce battery packs for Toyota Rav R4 and a charger for the
subcompact Daimler AG electric vehicle
These projects would supplement the Tesla income while also helping it to build scale and
learning curve effencies in its technology
Musk also had a plans to produce a sport utlity vehicles the Model X which could be $ 250
million to develop would go to the production in late 2013
Companies Internal Strength and Weakness
Strength
Automated Marketing
Manufacturing
Distribution
Manufacturing was performed at its foremont
plant . Its manufacturing process was highly with
extensive use of eight to ten foot all red robots .
Each robot has single mulit joined arm Tesla robots
perform up to 4 tasks
Welding , Riveting , Bonding , Installing
componenet
Musk and Eberhard were at odds over decision such as the body panels
The major obstacles to obstacles to adoption of electric vehicles were their limited
ranges and associated range anxiety
These concerns were not so much of issue for the Testla cars due their
exceptionally long range . The other mass market electric vehicle faced tougher
hurdles
For examples tough a Nissan Leaf could be charged at an ordinary 110 household outlet
a full charge by this method could take eight hours . Level 2 charging with 220 volts
outlet could shorten that time to four hours but this was still completely impractical for
recharging during trip .
External Environment PESTLE ANALYSIS
Strength
First move advantage - First Company to offer a High quality all electric exotic sports car
Design and build many components in its vehicles including power electronic , battery packs
Weakness
The company had survived its infancy appeared to be solvent and was meeting its sales and
objective even though serious obstacles remained for electric vehicles . It was also competing
against companies with far greater scale .
.The company had taken in $562 million in revenues and reported an $11.2 million profit . In
May 2013 the company raised $1 billion by issuing new shares and then surprised investors
by announcing that it paid back its government loan . However some investments analysts
were more sketyical .The 2013 profits had included a one time $10.7 million DOE stock
warrant profit and $68 million in ZEV credit sales . The warrant revenues would be repeated
and nobody knew what early
Threat
Hybrid vehicles made their appearance in US auto market in 2000 these vehicles were
readily adopted by consumers because they require no change in typical consumer
because they require no change in typical consumer usage. H
Several companies had attempted to enter to all the enter the electric vehicle market
but the run out the cash and ceased operation .These included Fisker , Coda ,Azure
Dynamics
The more serious competition was coming from established automakers who had
deeper pockets to withstand the losses of the building the electric vehicle market
The Nissan Leaf for example retailed for about $35,000 and had a range of about the 90
-100 miles per charge .
5. Tesla corporative-level Strategy
Tesla is pursuing the corporative-level strategy of higher-
level multi-business model which differentiates Tesla
from other rivals.
- Solar energy products such as the Solar Roof which is being provided at
lower price and attractive to customers.
6. Teslas business-level Strategy
Teslas CEO Musk plays the most important role in strategic control
system:
- Making greatest influences on other managers behaviors to achieve the
corporate goals
- Getting involved in intimately in all decisions about Teslas operation and
product design.
- Insisting on using best components and materials for products
7. Teslas structure, control system and how it match its strategies
- Tesla has delays in the a. Increase sales of the stunning solar roofs
delivery of electric with seamlessly integrated battery
vehicles storage
- It has critical problem b. Expand the electric vehicle product line
of suffering losses or
making no profit. to address all major segments
- It has more c. Develop a self-driving capability that is
challenges such as 10X safer than manual via massive fleet
safety and insufficient learning
supercharger site d. Enable your car to make money for you
issues with electric when you arent using it
vehicles.
(Daniel Sparks, Jul.21, 2016)
8. Recommendations
a. Tesla should make more efforts in getting more people to know about the
advantages of solar roof and better understand its distinguished features.
For examples, to make close and more communications and promoting
activities with the residential communities and offering brochures with
detailed information to potential customers; to make more online
advertising, with a view to increasing the sales of this kind of new product.
8. Recommendations
d. Regarding its 4th target, the owners of cars might worry about the potential
damages to their cars while the renters or passengers have much concern of
their safety, Tesla should establish more specific, appropriate and applicable
rules and procedures to ensure the interest and safety not only for the owners
of cars but also for the passengers and also ensure both parties willingness of
participation in the project.
Daniel Sparks, Jul 21, 2016, Tesla's New Master Plan: Everything You Need
to Know About Elon Musk's Wild, Futuristic Vision
https://www.fool.com/investing/2016/07/21/teslas-new-master-plan-
everything-you-need-to-know.aspx
http://www.businessinsider.com/everything-you-need-to-know-about-
tesla-solar-roof-2017-3