Tesla Motors Company

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Introduction to Tesla Motors and Overview of Its History

Tesla Motors is named after electrical engineer and well-known physicist Nikola Tesla. The company started its operations in 2003 in the Silicon Valley. The idea was to reassure the target audience that electric cars are more efficient compared to those that use fuel or gas. One of the first vehicles of the company was the Tesla Roadster that an AC motor based on the initial design of Tesla. This automobile was empowered with the lithium-ion battery cells that were the first in use and overall production of electro vehicles. Such cars could have a speed of more than 300 kilometers per charge, which is around 200 miles to run (“Tesla Motors Inc.”).

Starting from 2008, Tesla sold over 2,000 Roadsters in more than 30 countries all over the world. However, Tesla terminated the manufacturing of the Roadster in the United States in 2011. As of 2012, Tesla had more than 3,000 employees working full-time across the Tesla organizations. By December 2015, Tesla Motors employed more than 13,000 people. This number increased to more than 30,000 people when the company acquired some of the United States companies, such as SolarCity and Grohmann at the end of 2016. The new manufacturing of Tesla was its Model S in the form of an all-electric sedan invented at the beginning of 2009 (“Tesla”).

The delivery of the Model S was until 2012 before Tesla launched a new model manufacturing named Model X, which started at the end of 2015. The international sales of this Model S reached 100,000 units at the end of 2015, which was in almost three years after the launch. The next so-called Model 3 was put on the mass market at the beginning of 2016. In a week, the company reached a global coverage with more than 300,000 vehicles sold. The potential sales of the company could reach up to 14 billion dollars for this item if the sales continue at the same pace. In 2016, the Model S was perceived as the global second-best-selling plug-in, excluding the Nissan Leaf (“Tesla Motors Inc.”).

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Products and Services, Manufacturing and Supply Chain

The mission of the company is to speed-up the global transition to the use of sustainable energy all over the place. The idea is to create an electric vehicle that has sufficient power and does not produce any emissions. Every generation of these cars becomes more affordable for the target population globally since the company continues to follow its mission. The executives strive to help the humanity to make a transition to the use of sustainable and harmful transportation all over the world. The company has offered the target customers an innovative vehicle known as the Tesla Roadster that become one of the most famous cars in the target industry (“Tesla Motors Inc.”).

The same refers to the next Model S which has become one of the global premium electric vehicles. It is a family car that satisfies all the needs of a conventional family. In fact, it is incredibly powerful on the road and allows drivers to hold the road while ensuring complete safety of its passengers despite the level of traffic on the road. The CEO of the company, Elon Musk, continues to improve its Model S with its overall performance. The idea is to help drivers to control the riding of a vehicle and its efficiency on the road. One of the most significant benefits is that the owners of such cars could charge them at home, which is extremely convenient and free of charge. It also makes such cars eco-friendly, which could help to save the planet from harmful emissions (“Tesla”).

It is vital to acknowledge that in the case of the long-distance traveling, there is an opportunity to take advantage of the Tesla’s Supercharger network services. They provide free and convenient access to the fast charging of electric, which usually takes up to 20 minutes. Such superchargers are already in place across the most popular routes in Europe, the United States, and Asia. Besides, the manufacturing of electric vehicles takes place in California at the production venture of General Motors and Toyota. Thus, the company offers more than 1,000 of new employments while producing several thousand vehicles every week (“Tesla”).

Currently, the company plans to expand its manufacturing footprint in different facilities globally. The supply management system would consider the use of high-end specifications, which corresponds to borrowing everything required for manufacturing Tesla electric vehicles from electronic manufacturing providers. It is the best applicable practice that the company could use today to sustain its manufacturing operations. The same solution is applied to the supply chain of all additional hardware and software required to produce the next generation of electric vehicles. Thus, the major suppliers of the company are Foxconn, Chrysler, Compal, Volkswagen, Flextronics, Ford, Jaguar, Jabil, Daimler, and General Motors (“Tesla Motors Inc.”).

Elon Musk also strives to minimize the expenses on the lithium-ion battery packs. It is managed in line with a new construction of a so-called Giga factory that is based in Nevada. The production is aimed at the mass-market while offering Model 3 at the affordable pricing policies. The purpose is to produce the energy battery packs that could save both time and money to owners of electric vehicles. It also considers the minimization of the energy costs and additional expenses on the innovating of the electronic car technologies. Thus, the future of Tesla models is known as the Model X, which is both a van and cabriolet that operates on the same platform as the Model S. It is going to become a model that people could easily afford to meet their daily needs. The Model Y will become a new release in the form of a Tesla Minibus that takes advantage of the Model X platform (“Tesla”).

Technologies, Regulations, Safety, Testing, and Quality Control

Tesla Motors develops electric powertrain elements for its vehicles with different automakers, such as Toyota, etc. The idea is to provide the target customers with a cheap and, at the same time, effective solution. Across the use of modern technologies, Tesla Motors has certain regulations to test vehicles and ensure they are safe for the target users (“Tesla Motors Inc.”). Such tests and measurements are performed in line with the following aspects:


Unlike many car manufacturers, Tesla takes advantage of small battery cells made of lithium-ion that are also used in modern laptops. The purpose is to ensure the convenience and effectiveness of electronics devices. Such approach allows the company to manufacture these batteries using cheaper materials. At the same time, the target customers are already aware of the ways to use similar batteries, which also guarantees them safety. Tesla Motors removes some features that are unnecessary, which allows the company to save people from fires. The major supplier of such batteries is Panasonic, which works together with Tesla and the Giga factory to develop the battery cells (Vance 15).

The testing for safety is performed on all the levels of applying these cells to electric vehicles. Also, the company considers both security and convenience of the target users, which is why, it takes advantage of the aluminum alloy armor plates. The purpose is to protect batteries and, especially, people from the possible damages on the road. The health and convenience of the target customers are the most significant concerns for the company. The element of efficiency is in the convenience of replacing batteries, which takes less than several minutes. Thus, the target customers receive many benefits from their electric cars, including comfort, economic efficiency, and protection of their health (Gamble et al. 20).

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Technology input

The Tesla Patent Wall allows everyone interested to take advantage of the patented technology as an open source movement. However, the application of such technology should have a positive impact on humanity. It also ensures all safety measures that protect the health of electric vehicle users. The idea is to attract the target audience to the application of the Tesla technologies in the life of people. The primary emphasis is on the establishment of the electric transportation in the modern community. At the same time, it refers to the safety of individuals while considering the prevention of harmful emissions. All the processes are tested until the result is achieved with the maximum efficiency and minimum harm for people (Gamble et al. 10).


The auto-pilot takes advantage of semi-autonomous driver assistant inbuilt in the Tesla electric vehicles. These cars also have camera monitor systems to ensure the safety means for the target car users. These cars also have ultrasonic acoustic location sensors, which supply vehicles with an all-inclusive buffer zone all over the cars. Such equipment allows Tesla Motors to detect the road signs, including lane markings and various obstacles on the way. The system also has an easily adaptive cruise control along with the lane departure warning for people in case of any possible issues (Vance 25).

Altogether, it helps people to drive accurately and be safe from various unsecured situations on the road. The auto-pilot system uses a contemporary software and hardware that operates in line with an inbuilt radar system that also ensures safety concerns of people. Another aspect of interest is the ability to avoid having an automatic emergency braking, including the collision warning. The additional points of interest are the land holding along with active cruise control utilities. Altogether, these appliances allow car users to feel safe while driving their vehicles using a self-driving mode (Gamble et al. 44).

Tesla glass

Tesla Motors also considers the need to protect people with the unique Tesla glass technology. In fact, such glass is intended for the use in space roof tiles. This kind of glass will be used across all the newly manufactured electric vehicles to ensure all safety matters and protect people from all possible issues on the road (Vance 67).

Corporate Strategy, Customer Relationships, Sales, Marketing, and Financials

The corporate strategy of the company avoids a standard product life cycle. Instead, it prefers using innovative technologies that are rather expensive but more efficient in the long-run. Overall, the end products turn out to be rather attractive for the target customers. The company seeks all the best marketing strategies to engage in the communication with the target clients. The idea is to clearly understand their needs and provide them with highly innovative Tesla solutions (Gamble et al. 91).

It is important to consider that the target market always changes along with the conventional approaches to attract the target audience. For this reason, the company seeks to improve both its sales and marketing tactics with the purpose to become more competitive while offering high-quality products at affordable pricing policies. Such approach helps the company to gain customers’ loyalty and, at the same time, improve the market awareness of the existing and future products. This strategy applies in both sales and marketing approaches that seek to ensure financial stability in the long run (“Tesla”).

Thus, the company could manage its objectives with the contemporary corporate strategy and make sure it benefits from all the opportunities to scale the business globally. The idea is to consider meeting both economic and safety needs of the target customers by providing a cheaper electric vehicle with every single model launch. Tesla Motors sells its vehicles using the corporate showrooms and by taking advantage of online selling. It also offers the cars through the partner dealers and automakers all over the target market. Thus, the marketing efforts are aimed at delivering high-quality electric vehicles with a pure electric propulsion technology (Gamble et al. 53).

Direct and Indirect Competition

The primary competition for the Tesla Motors Company consists of two groups of companies. One group manufactures all-electric vehicles and could be considered as direct competitors. They are Nissan Leaf, Fiat 500e, Honda Fit EV, Ford Focus Electric, and Toyota RAV 4 EV. Another group of competing companies represents indirect competition, which considers the use of hybrid technology. These competitors are Chevrolet Volt and Chevrolet Malibu, Toyota Prius, Ford Fusion and Ford Escape, Honda Civic, and Honda Accord. All the car models outlined above have sufficient technologies and overall, are strong competitors to Tesla Motors (Vance 30).

The primary reason for such situation is that these providers of the electric vehicles are more affordable for the target customers. They are also aimed at the middle-class people. The competing companies have many dealerships in the inventory stock, and they also take part in the car shows with the complete test drive events. Besides, these dealers have many highly qualified certified technicians, and the companies continually invest in the television commercials. The results of such competition are that these companies already have sufficient customer awareness and, thus, could become strong competitors for the Tesla Motors Company (Gamble et al. 48).

Risk Factors and Challenges

The future of electric vehicles is still unknown. However, Elon Musk consistently invests time and money in the potential of electric vehicles. In many cases, it refers to overcoming possible risk factors in the future. The major implications are on the ability to leverage the existing offers and use them to scale the business in the full luxury segment of the target market. It will help to overcome the competing companies, such as BMW, Lexus, and Mercedes. The other aspects in which the company faces risks refer to the consumer demand, dealership and maintenance services, marketing, production operations, as well as the use of innovations in the future (Vance 30).

At the same time, the company may face different challenges related to the supply chain of all the technologies to manufacture new versions of electric vehicles. The solution to this problem would be to consider in-house development technologies that would address all the supply chain initiatives. Therefore, it examines the provision of both software and hardware for manufacturing the existing models of electric vehicles. Such considerations make the company flexible in utilizing its manufacturing capacity along with maintaining the supply chain management operations (Vance 41).

It has a direct relation to the process of selling electric vehicles online, which is another risk aspect for the company. The reason for such situation is that many countries require the company to have local dealers, which makes the process of online sales rather complicated. The next aspect of concern is the ability of the business to present new models on the target market, which could be the problem in the short run. However, it is still possible to manage shortly with more representatives of the company in the developed and developing markets. The final concern is the cost of maintenance, which is difficult to imagine today. This problem is yet to be solved by the company to avoid any difficulties while penetrating in new target markets (Gamble et al. 67).


The process of work at Tesla Motors is quite challenging for many prospective employees. Currently, the company is interested in the service and test technicians, information security analysts, and product security software engineers. Besides, the company accepts recent graduates and strives to help them grow personally and professionally in Tesla Motors. Thus, working at the company is focused on the agile development, including the ability of people to deliver excellent products and services in the most efficient manner. The process of work is rather stimulating and offered nearly all over the globe (“Tesla”).


This research provides a summary of a publicly traded company known as Tesla Motors. The study offers a comprehensive overview of the business operations. The emphasis is on the way Tesla Motors accelerates the situation in the world relating to the use of sustainable energy. The report outlines the existing products and services of the company, comprising its recent developments. At the same time, the study discusses both sales and marketing strategies used by Tesla Motors in the global marketplace.

The report also addresses the financial services of the company, including the aspects of manufacturing, supply chain management, and quality control. Also, the report covers its relationships with the target customers, including the regulations of safety while testing the vehicles. The research also consists of the analysis of the competing companies along with the evaluation of risk factors, employment opportunities, and use of innovative technologies. Finally, the study provides an overall report on the profile of the selected company and its performance in the global marketplace.

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