Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Summary of Tesla
Battery powered cars essay
Battery powered cars essay
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Summary of Tesla
Question 1: What are the risks for Tesla? Limited operating history Tesla may experience significant delays or other complications in the design, manufacture, launch and production ramp of new vehicles. Tesla growth is highly dependent upon the adoption by consumers of alternative fuel vehicles in general and electric vehicles in particular. If the market for electric vehicles does not develop as we expect, or develops more slowly than it expects, business, prospects, financial condition and operating results will be harmed. Tesla continues to burn cash: With the company’s aggressive spending on research and development, employee compensation, and expansion of its service centers, stores, and other aspects of its business, is making it …show more content…
Tesla’s supercharger network puts it ahead of the competition and creates an opportunity for increased revenue. Disadvantages: Negative Net Income: Perhaps the most obvious disadvantage is that traditional “value” investors are turned off by the company’s consistent negative net income, leaving nothing to return to shareholders in terms of dividends or share buybacks. Disconnected between technology and business model: The innovativeness of Tesla’s technology is not matched by the innovativeness of its business model. In fact, there is no change to the business model at all. Tesla is simply proposing to replace the standard gasoline car and gas station business model with the model S and a supercharge station network. What the model S needs is not a network of charging stations but a different business model. Issues: Increases in costs, disruption of supply or shortage of raw materials, in particular lithium-ion cells, could harm its business. We may become subject to product liability claims, which could harm our financial condition and liquidity if we are not able to successfully defend or insure against such …show more content…
The much affordable price of the model 3 will probably result in a boost in its sales. The model X was issued in 4Q15, only 208 units was sold while 2400 units were sold in 1Q16. Therefore, we assume a 2400 units of sales of model X in each quarter of 2016. In 2015, 50580 automotive (model S and model S) were sold. There is a sales report from AUTHOR FORECAST which we used in the spreadsheet. There would be cannibalization of old models from 2020 and a more uncertain market environment, so the sales forecast after 2020 we made were relatively conservative. After 2020, the automotive revenue growth rate we assumed was 15% each year. Model S will grow at 18% from 2018 then 3% less year-to-year. This is because we assumed that model S will experience a declining growth as the similar new model X will grow. We assume model X will have a rising growth rate until 2020, when new models at the same price would replace the model X. After 2020, though EV will be more popular compared to traditional vehicles, fiercer market competition can affect the growth of Tesla’s
... 10 years from now. In the chart below you can see that we believe that our sales will double each year.
The Automotive, or electric car industry particularly, comprises all those companies and activities involved in the manufacture of electric motor vehicles (EV), including most components, such as engines, bodies and rechargeable batteries or another energy storage device. The industry’s principal products are passenger automobiles. Despite the fact that the first electric cars were produced in 1880s , the advances in internal combustion engines, especially the electric starter, soon diminished the relative advantages of the electric car and became the dominant design in the market. Due to this the EV was almost a forgotten industry staying in the early stage of development, conforming to less than 1% of the automotive stock
Excellent growth up until the most recent year. Sales dropped from 1984 to1985. A new product introduced in 1986 is forecasted to boost sales.
For the sake of the analysis, I extended the forecast to two more years beyond the three initial. I will also assume – by the analysis that I did – that the growth in Marconil requirements is the same as the growth in sales. (Exhibit 2). Although, I verified some scale economies in the quantity requirements as quantities increase. As for the price growth, I assumed the average of last years growth, which is 9% y-o-y (Exhibit
Tesla motors is a company that produces and sells automobiles. Tesla is not any old automobile company. Tesla specializes in all electric cars that run 100 percent on battery and focuses on the future. Tesla is looking into the future and realizes that fossil fuels will eventually run out. Tesla is moving toward a zero-emission future for the better. A tesla is a vehicle, an all-electric vehicle that combines safety, performance, and efficiency. In 2016 Tesla’s annual revenue totaled to 7 billion dollars. Tesla is a profitable company. Tesla has seen potential growth in annual gross income, since 2012 from earning 30 million dollars to 2016 earning 1.5 billion in annual gross income. (1) The Tesla factory is located
We are using October 2006 as the base for our forecasted sales due to the many changes that have occurred in the last year. Several product lines have been ...
The future American commuter will undoubtedly have to transition from the use of fossil fuels to new alternatives due to the diminishing availability of the nation’s oil resources. How will America respond to this upcoming issue? It is difficult to predict which alternative fuel source America will ultimately choose, but with the premier of Nissan’s electric powered Leaf and other companies; such as Tesla Motors and Chevy, with their electric cars ready for market, the electric car may be winning the race to become the new standard for the gasoline alternative. Electric cars resolve long standing environmental issues, but it will need to maneuver around many roadblocks to become a marketable consideration for the general public. The cost of electric cars, currently on the market, makes them an impractical purchase for the average consumer. If cost is not the growing concern in today’s economy which prevents the consumer from considering this option; they may deny the technological advance due to battery storage capabilities and the inadequate infrastructure in place to refuel and provide for them.
Chiefly, and most apparently, it is the goal of Tesla Motor to generate demand for Tesla vehicles (Andrade, Holloway, Payne, Roy & Sheffield, 2015). In turn, demand will drive leads to the Tesla sales team (Andrade, Holloway, Payne, Roy & Sheffield, 2015). Tesla will continue to build long-term brand awareness, in addition to continual management of corporate reputation (Andrade, Holloway, Payne, Roy & Sheffield, 2015). Tesla Motors will expertly manage the existing customer base to create loyalty and increase customer referrals (Andrade, Holloway, Payne, Roy & Sheffield, 2015). Additionally , Tesla Motors hopes to enable customer input into the product development process (Andrade, Holloway, Payne, Roy & Sheffield, 2015).
“Money does not represent such a value as men have placed upon it. All my money has been invested into experiments with which I have made new discoveries enabling mankind to have a little easier life.” (Politika, 1927) During his 86 years Nikola Tesla obtained around 300 patents worldwide for his inventions, while many inventions developed by Tesla were not patent protected. Tesla’s inventions ranged from alternating current motors to a World Wireless System which is a proposed telecommunications and electrical power delivery system and Teleforce which is a self-defense weapon system that used pellets or slugs that were accelerated to a high velocity in a vacuum chamber then fired out of nozzles that would aim at the target. (Glenn,
Due to physical reasons, Tesla vehicles cannot be recharged comparably quickly to a petroleum fuel-powered car
Environmental concerns have been raised from time to time because of the dependency on the gasoline-fueled engine as the chief auto powertrain technology. 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 being electricity to drive them instead of the disadvantageous gasoline-powered engine. This invention was influenced by a number of factors in terms of their planning and performance (Hunger, 2010).
Tesla offers adults who want a luxury car without paying a fortune in gas prices with future generation electric cars, that where style, performance, and the environment are never sacrificed.
A further indication is that the revenue, now coming from China, eventually will move from new sales toward provided service. This is estimated since the Chinese market, by time, will become a more mature market.
Tesla is highly recognized for its excellent lead in the enhancement of a sustainable future. In summary, there is a need for protecting the environment to become cleaner, greener and sustainable one. With the number of vehicles that operate globally on petroleum and diesel, the environment will be wasted and totally degraded in a short time. It is important to apply such new technologies for the better of the future. Tesla been a pioneer in this industry has brought about changes that can be applied to change the world. For this reason, as many companies as possible should embrace the strategy of Tesla in the development of a sustainable future.
The Capital investment, skilled and licensed labour force, technological advancements, working with good quality suppliers is considered big barriers of entry into this industry. The future requirement of electric cars and hybrid vehicles has opened this industry to some new entrants like Tesla.