Tesla Motors Situation Analysis

834 words - 3 pages

This report examines factors impacting performance and planning for Tesla Motors and outlines current financial situation for the company. The following topics are discussed in this report.
Background about Tesla Motors
Case study discussion
Situational analysis for Tesla
Financial situation.
Tesla Motors is specialized in manufacturing electric vehicles and powertrains components related to the electric vehicles. Beside that ,Tesla Motors is owning network of supercharger stations and service centers. The company is focusing on selling directly to the customers to enhance customer experience and promote the company brand. Currently, the company is manufacturing and selling its second generation of electric vehicles named Model S sedan. Tesla Motors sold over 25,000 Model S vehicles in North America and Europe as of December 31, 2013.The company is planning to commercialize Model X crossover in spring of 2015 and planning to build its third generation of electric vehicle called “Gen III” after three years.

Case study analysis
The case study discussed the situational analysis and company strategy for Tesla Motors. The analysis can be summarized, using SWOT analysis, in table below.
Vertical growth
Horizontal growth
leader in manufacturing of electric vehicle and the powertrains components for electric vehicles
Customers focused.
Green technology

lack of profitability
limitations and problems for battery (slow recharge, range anxiety, decreasing battery capacity over the time ,heating and failure)
Need for high research and development expenses

Emerging market for electric vehicles

economic slowdown
Alternative power technologies (hydrogen, fuel cell, clean diesel and natural gas powertrains)
Legal issues

Four Factors Impacting Tesla Motors Performance
Four main factors that are impacting Tesla Motors performance will be discussed in this report. These factors are:
Tesla Motors distinctive competencies
Horizontal Growth
Pull management model

Tesla Motors distinctive competencies
Tesla Motors achieved the following competitive advantages without compromising design or functionality:
Long range and recharging flexibility. In addition to fast charging ,The Tesla Motors vehicle ranges are more than double ranges of other electric vehicles.
Energy efficient and cost of ownership.Compared to internal combustion and hybrid electric vehicles, Tesla Motors vehicles are lighter, more energy efficient and lower maintenance cost. Government incentives are contributing further to reduce cost of ownership.
High performance. Tesla Motors succeeded in combining the high performance and excellent design in developing its electric vehicles.
In 2013, Consumer Reports considered Tesla Model S as the best car ever tested and and Tesla Model S got 99 out 100 in the magazine’s test.
Tesla Motors is operating within electronic-based...

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