Introduction Tesla Motors, Inc. is an American company that designs, manufactures, and sells electric cars and electric vehicle powertrain components. Tesla Motors first gained widespread attention by producing the Tesla Roadster, the first fully electric sports car. The company's second vehicle was the Model S, a fully electric luxury sedan. Tesla also manufactures and sells electric powertrain components, including lithium-ion battery packs, to automakers, including Daimler and Toyota. Tesla's CEO, Elon Musk, has said he envisions Tesla as an independent automaker, with the goal of eventually offering electric cars at a price affordable to the average consumer. Lithium- ion cell commoditization and high-end product strategy shield the company from significant interdependence and integration risk. Tesla Motors is a public company that trades on the NASDAQ stock exchange under the symbol TSLA. In the first quarter of 2013, Tesla posted profits for the first time in its ten year history. Tesla raised $60 million and spent about $25 million developing its two-seat Roadster vehicle that sells for $109,000. Over the last couple of years, Tesla Motors has fought many legal and legislative battles in a large number of states over proposed or current state laws that try to stymie Tesla’s unique factory-direct sales and service model. In most cases—Massachusetts, New York, and North Carolina, among others—Tesla has managed to stave off the proposed laws, which are typically backed by franchised car dealers, or it has won lawsuits based on current laws that were brought by dealer groups. But in Texas, which has the nation's most Draconian anti-Tesla rules, the company's lobbying efforts have run into a brick wall. For the purposes of this ... ... middle of paper ... ...nasonic and its suppliers are only planning to invest $1 billion. Panasonic will be paid an IP royalty for every cell the Gigafactory produces. What it will not get is a profit margin on the percentage of output that belongs to Tesla. Reference: http://seekingalpha.com/news/1650803-all-eyes-on-teslas-gigafactory Conclusion: Tesla is a leader in its marketplace, and some of the success must be attributed to its ability to control its IP. Being a first mover in manufacturing electric cars, there is an ever-growing threat of competitors attempting to get a piece of the pie. Tesla must continue to use the patenting process as a means to protect its products. Additionally, the company should be more aggressive towards implementing its current IP protection strategies. This will streamline its effectiveness to control infringements and help manage its ever-growing IP.
The contraposition for Tesla Motors is the rapid service received. Despite not having a traditional infrastructure, the company beats it opponents in its operational expeditiousness. The Palo Alto automaker’s response time for issues is often overnight, and always beyond convention. One customer with some play in his gears had his entire drivetrain replaced.
Tesla’s recent news of its “Gigafactory” is an excellent example of vertical integration. It plans to build batteries for its forthcoming electric vehicle lines in house. Tesla released information on its Gigafactory in June 2014. The company expects to begin cell production in 2017. By 2020, the Gigafactory is estimated to reach full capacity and produce more lithium ion batteries annually than were produced worldwide in 2013.
On June 12, 2014, Elon Musk shocked the business world by revealing that Tesla Motors will not initiate patent lawsuits against anyone who uses their technology in good faith (Desjardins, “10 Mind Blowing”). For those who don’t know who Elon Musk is, he is the CEO of SpaceX and the CEO of Tesla Motors. Electric vehicles have currently been creeping up on the world and are starting to become a big thing. One company that I think is leading the movement of electric vehicles is Tesla Motors. At the moment Tesla has three different car models that will all be available by at least 2020. Listed on teslamotors.com there is a Tesla model S that comes in three different battery sizes, the Tesla model X which will be released in 2016, and then the
Apart from Musk’s concise vision statement Tesla has a truly inspiring mission statement, “At the core, Tesla Motors believes that electric cars should not be perceived as a sacrificial mode of transportation. Tesla Motors has brought the best of both the automotive and technological worlds together by permanently etching the image of electric cars being a step backwards in performance, efficiency, and design” (Tesla Motors,
The focus of Tesla Company is on a niche in the automotive industry, which is building and selling electric cars. To a company like General Motors, the electric cars line of business is considered a side business, hence it only needs to study the patterns of Tesla’s cars then build on of its kind that will take Tesla out of business (Debord, 2015).
Tesla Motors are an automaker company that was founded in 2003. Compared to other companies, it is still fairly new. Located in Palo Alto, California, Tesla makes electric cars and electric components. Like any other car, it gets you to your destination, but the properties in a Tesla are what makes it unique. A Tesla is an electric car integrated with an autopilot system that allows the car to drive by itself. If the driver feels fatigued, auto piloting the car allows him to relax a little.
Electric cars are attempting to bring on an uprising. A modern company, Tesla Motors, is bringing the all-electric car to life. Tesla has been very successful in the past couple of years, engineering a vehicle that will impress safety standards. Although it has been quite a bumpy ride along the way for CEO and founder Elon Musk of Tesla Motors. Tesla has big plans for the future. However, the plans will not be necessary unless Tesla is allowed to sell their vehicles directly to the consumer and not through dealerships.
Founded in 2003 Martin Eberhard, Marc Tarpenning, the well-known Elon Musk, JB Straubel and Ian Wright and after many years of hard work, Tesla Motors is an American automotive and energy storage company that designs, manufactures, and sells electric cars, electric vehicle powertrain components, and battery products.
Tesla Motors, Inc. is an American company that styles, manufactures and sells electrical cars and electrical vehicle powertrain elements. Tesla Motors may be a public company that trades on the NASDAQ stock market underneath the image TSLA. Within the first quarter of 2013, Tesla announce profits for the primary time in its 10 year history.
2. What were the critical marketing decisions that helped Tesla stand out among other companies and become the lead innovator in its
For years, Tesla has struggled to achieve and maintain profitability, despite a soaring stock price in recent years. That profit level would suggest that Tesla as a company is still in the Introduction phase of its life cycle, even though they’ve been around for almost 15 years. On top of their longevity, Tesla has become increasingly relevant in the automotive industry, most likely aided by a societal shift in thinking about conservation, and leading technological advancements. We believe that Tesla exists in a unique space between the Introduction and Growth stages of the textbook-defined product life cycle. More profitable results in a foreign market like Japan may not require a drastic shift in distribution strategy, however. As we’ve covered,
This has resulted in exposing many automobile users to unpredictable prices of fuel. These issues were, however, the reason for the inception of Tesla Motors so as to bring into existence another set of automotive which serves the similar purpose but uses another form of energy that is electricity to drive them instead of the disadvantageous gasoline-powered engine. This invention was influenced by a number of factors in terms of its planning and performance (Hunger, 2010). Factors affecting Tesla’s planning and performance. The success of any organization, just like the Tesla Motor, largely depends on the planning of the activities by the management team in the company.
The main theme in this article is how Tesla’s innovations are transforming the auto industry. The company has innovated and produced desirable electric cars like Model X doors. The proponent of this argument hold that the losses that Tesla has had are just short run and hold that Tesla is producing extremely needed electric automobiles. These vehicles have fast speed and go long distance over other rechargeable cars (Gregersen, 2016).
In fact, during the year ended December 31, 2012, Tesla recognized total revenues of $413.3 million, an increase of 102% over total revenues of $204.2 million for the year ended December 31, 2011. Automotive sales revenue of $385.7 million increased 160% from the year ended December 31, 2011, driven mainly by commencement of Model S deliveries in North America. (Tesla Annual Repor, Exhibit) As a matter of fact, new products had been proved to have a direct relationship with increases in net sales. In addition, by 2014, with the innovative dual motor all-wheel drive system, Model X being introduced, and the intent to develop the third generation electric vehicle which will be produced at higher volume at a lower price. We expect a minimum 25% increase in net sales from new products alone by 2015.
The difficult part of this venture is making it a reality considering the high cost of production and challenging market. Investing in an electric car industry may require business to be conducted the old-fashioned way, which is getting people to pay for the business. In addition, setting up the company as a public company has the benefit of increasing investment and market share on the company even though the public will also hold the management of the company accountable (Osterwalder et al., 2010).