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Tesla Motors
Tesla Motors
Tesla Motors
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Tesla Motors
The world has been using fossil fuels to power vehicles since they were first
invented. Fossil fuels have led to environmental pollution until Tesla motors began to
shift the paradigm through manufacturing of electric vehicles (Handa, 2020). The
company’s vision was to establish a market for clean energy products. Tesla was
founded in 2003 by a group of engineers and was acquired by Elon Musk in 2004 who
became the largest shareholder (Han, 2021). From the start the company experienced
problems with the economies of scale, lawsuits and declined profits. However, the
company turned around and began designing superior products that have increased its
market share exponentially (Han, 2021). The purpose of this paper is to discuss how
service.
Government policies have accelerated the growth of Tesla into a giant electric
vehicles have created a niche for Tesla to take advantage of using electric cares
(Liu,2021). The initial fleet purchase by governments boosted the sales of the vehicles
enabling the company to generate revenue within a short time. Tesla’s mission is
aligned with the government’s to reduce carbon IV oxide emissions (Liu, 2021). Thus
alignment has made the company receive protection from the governments. The
vehicles improve air conditions and reduce the onset of airborne diseases thus
winning the hearts of many politicians. President Bush’s administration gave Tesla a
loan to start off the manufacturing process which was paid back at a low interest (Liu,
2021). The financial success of Tesla is tied to the political goodwill of the United
States government.
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Superior technology.
the cost of production and to lower the cost of the vehicles. Tesla’s use of Internet of
Things (IoT) has enabled it to manage the complexity of the manufacturing process
while maintaining flexibility (Liu, 2021). The company has synergistic relations with
other tech companies such as Panasonic which enables them to work on better
products.The battery and electric power components are designed to allow flexibility
and give room for future advancements.The battery cells are optimized to store more
power for the vehicles (Han, 2021). The batteries can power the vehicle for up to 370
miles before recharging.Tesla managed to use cylindrical battery cells in the battery
packs that have made it easier for production of powerful battery packs.
Powertrain and battery cell pack is the rarest technology used that makes it
difficult for competitors to copy the vehicle models as it requires high level expertise
(Han, 2021). The company built its own battery factory to secure a supply for
batteries and minimize the cost of manufacturing. Tesla uses automated vehicles and
manufacturing (Perkins & Murmann, 2018). The overhead costs have been
significantly reduced by this move and manufacturing process has become more
efficient.The engineering team is located in the same place to minimize logistic costs ,
to speed up the processes and reduce waste production. Making the engineering team
work from the same place leads to production of better products due to exchange of
ideas (Perkins & Murmann, 2018). The location of the vehicle plant in Carlifornia
places it to close proximity with a huge supply of engineering labor from Palo Alto.
and network stores. The distribution centers are located in visible areas such as
shopping malls thus increasing the chances of the potential customers interacting with
the product (Han, 2021). The stores are purely informative, making customers aware
of the vehicles and enriching their experience. Knowledge customers gain from the
store visits helps to build a strong brand perception. The company sells its products in
their showrooms, enabling them to interact with customers and speed up product
development (Han, 2021). The showrooms have doubled up as service and retail
centers for the customers. Customers can service and charge their vehicles at the same
Tesla has mobile technicians who move to customer’s location and fix
mechanical issues the vehicles are experiencing. They also started an online platform
where a user can upload the vehicles data and a solution given to the problem (Han,
2021).The company has an efficient vehicle software that runs the vehicle. The
technicians fixes the vehicle online without touching it. Issues that are hindering the
vehicle from working are resolved promptly even when vehicles are in remote
locations. The company also offers a wide range of products for their consumers such
as home batteries and solar panels (Handa, 2020).The company gives loans to the
customers who want to sell their vehicles or take bank loans.The company takes
customers deposit up to three years upfront before the vehicle is produced and
delivered to them.
The company developed self-driving cars fitted with radar, sonar and cameras
to guide drivers. The vehicles are poised to reduce monetary loses caused by accidents
to the global economy (Ajitha & Nagra, 2021). The cars has contributed to an
increase in engineers and computer scientists who fix software and hardware-related
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automobile issues. The sensors helps the vehicles to avoid accidents and enables the
company collect data about the road conditions (Ajitha & Nagra, 2021).The company
provides training for the employees from time to time to equip them with knowledge
on the company’s products. On-job training is provide and employees are assessed
over time to establish their performance and enable them assist customers when their
Strong brand
The company has established a strong brand to the consumers that makes
many people wish to be associated with it. Elon Musk, the company’s CEO has
championed for adoption of alternative energy use that is eco-friendly (Handa, 2020).
The vehicles manufactured have been high performing and exceeding the customer’s
expectations. The brand has achived numerous awards such as being voted the car of
the year by consumers in 2013 (Han, 2021). Good performance has made customers
to refer the brand to their close friends and relatives. The superchargers produced by
the company are 16 times more efficient than public charging stations guranteeing
their customers with a steady power supply. The sipercharging stations charge
vehicles free to their customers. Vehicles take a maximum of thirty minutes to charge
(Ajitha & Nagra, 2021).The vehicles are cherished due to high accelaration and
superior lighting. The ability of the battery to store charge for a long time makes it
suitable for long distance driving (Ajitha & Nagra, 2021). The batteries enables the
product that is environmental friendly. Tesla’s success began with President Bush’s
prompt and efficient where the vehicle can be fixed remotely by technicians using
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developing superior battery technology to run the vehicles. Tesla batteries stores
charge that makes the vehicles suitable for long distance driving. The use of IoT has
enabled the company manage complex processes. The company’s self driving cars
References
Technology, 64(2), 503-512.
https://www.researchgate.net/profile/Ankita-Nagra/publication/349298066
Han, J. (2021). How Does Tesla Motors Achieve Competitive Advantage in the
https://scholar.archive.org/work/3fe5chu3dvevjldso4qrxfnoku/access/
wayback/http://www.ngcists.org/journal/file_down.asp?file_idx=633
https://acfa.apeejay.edu/docs/volumes/envision-2020/envision-paper-06-vol-
14-2020.pdf
Liu, S. (2021, March). Competition and valuation: a case study of Tesla Motors.
https://iopscience.iop.org/article/10.1088/1755-1315/692/2/022103/meta
Perkins, G., & Murmann, J. P. (2018). What does the success of Tesla mean for the
https://www.cambridge.org/core/journals/management-and-organization-
review/article/what-does-the-success-of-tesla-mean-for-the-future-dynamics-
in-the-global-automobile-sector/B023204421876CFB08B4DEA7FEA2C3D6