Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 2

In this world the amount of carbon dioxide is increasing rapidly which is harming the world environment

very badly. One of the main reasons for this problem is the huge number of cars which emit a lot of
carbon Dioxide. The overarching purpose of Tesla Motors is to help expedite the move from a mine-and-
burn hydrocarbon economy towards a solar electric economy, which they believe to be the primary, but
not exclusive, sustainable solution. Any new technology initially has high unit cost before it can be
optimized and this is no less true for electric cars. The strategy of Tesla is to enter at the high end of the
market, where customers are prepared to pay a premium, and then drive down market as fast as
possible to higher unit volume and lower prices with each successive model. Their long-term plan is to
build a wide range of models, including affordably priced family cars. The initial product of Tesla Motors
is a high-performance electric sports car called the Tesla Roadster. The Tesla Roadster is designed to
beat a gasoline sports car like a Porsche or Ferrari in a head to head showdown.

They lead Tesla motors to the success by making two simple business plans. People’s reliance on gas,
and the long-term effects of carbon emissions in the atmosphere. They had a simple business plan: Step
1 would be producing an expensive, exclusive super car for the super-rich, Step 2 would be the
production of a mid-priced, moderately produced sedan for the rich which would be funded by Step 1,
and Step 3 which would be the production of a cheap, high-volume for everybody. Tesla started with a
tiny submarket that it could dominate: the market for high-end electric sports cars . Though the
Roadster will never be compared to the Ford (F) F-150 in terms of volume, it did allow Tesla to build a
fair amount of revenue from it (3,000 at $109,000 apiece) to move further down the chain. The
company is further expanding this concept with the Model S as it gets to its third-generation car, the
Model 3, which Musk believes will be a mass market car.

Tesla’s CEO is the consummate engineer and salesman, so it’s not surprising that he’s assembled a team
that’s very good at both. Elon has described his team like “the equivalent of Special Forces,” something
that can be corroborated with current Tesla employees. Elon Musk is both demanding and motivating.
He is a very inspiring person, he will put you to the limit. He will really ask you the impossible, he will not
settle for mediocre results. He will only settle for the best of the best in what you’re trying to achieve in
manufacturing or design or performance or charging capability. It’s very fascinating working for
someone like that. He will not let go of any kind of outstanding result that is demanding.

Tesla’s service centers and its stores, which it has had to fight to keep open in some states,
including New Jersey, New York and Ohio. Tesla’s up-front costs are higher than other automakers
because of a change in business model with no dealership network, but it affords control over the
customer experience, strengthens Tesla’s brand, and saves the company money in the long run. Tesla
sells their product directly in their own showrooms. Most of their showrooms are in prominent urban
centers around the world as well as online where customers can purchase customized
products. Inventory management and after sales service depend strongly on dealerships in traditional
sales strategies. Still being one of the smallest manufacturers in the world, dealerships would only
decrease Tesla’s margins because of increased costs.  At the same time the company can’t benefit from
the same economies of scale unlike its competitors. By collaborating with other automobile makers such
as Daimler and Toyota, Tesla can keep supply costs for basic components low since it also has to work
with suppliers that don’t usually deal with car manufacturers such as battery suppliers.

You might also like