Tesla Case Study

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Company Background
Tesla Motors was founded in 2003 by a group of intrepid Silicon Valley engineers led by successful business owner, Elon Musk as another one of his top successful ventures over recent years past. They utilized Nikola Tesla into their brand name because their engine model was created using his personal models and technology. Musk’s goal revolves around accelerating the world’s transition towards electric mobility through providing a range of increasingly affordable electric vehicles, while simultaneously catalyzing innovation within the industry. The company designs, manufactures and sells electric vehicles and electric vehicle powertrain components. They are also the only automaker providing highway capable electric vehicles in North America and Europe. According to recent paperwork filed with the US Securities and Exchange Commission, Tesla produces at least 15 cars per week — mostly custom-ordered vehicles manufactured to owners' specifications.
Tesla designs and ideas are changing the world’s perspective on this technology as majority of our vehicles run on gasoline, and fossil fuels declining over time in supply. Tesla Motors believes that they provide an optimal solution to this growing problem and that their solution dominates among the competition of hybrid and hydrogen cars. This is supported by the fact that hybrids create carbon emissions and hydrogen cars produce waste water as a result while electric vehicles provide zero emissions and utilize simpler technology. Their car markets are primarily within the US but over the years they have expanded internationally and their popularity has blossomed within Europe as they have spread from Germany, to UK, Denmark, Norway, France, Italy, ...

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...ce; losses in energy conversion and efficiency of electric vehicles. Tesla vehicles cost as little as $5 to charge; equivalent to $0.02 per mile. Alternatively, a gasoline-powered car that is rated at 20 mpg cost $0.15 per mile” (Musk, 2012). Tesla has a competitive technological advantage as its affordability remains a factor in the vehicle with electricity instead of gas, so it is a good financial decision for consumers however their main concern remains how long they hold their competitive advantage within this competitive market over time. Environmental consciousness is what Tesla Motors is built on and its pursuit of diminishing dependence upon a diminishing resource for their consumers is what the company values most and depends on most for increasing revenue while helping the company hope to dominate the roads and highways internationally within in due time.

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