1.

1 Profile/History

Tesla was founded in 2003 by Martin Eberhard and Marc Tarpenning who aimed to create
electric vehicles that were both high-performing and environmentally friendly. Tesla gained
attention for its innovative approach to electric cars, particularly with the release of its Roadster
model in 2008. The company focused on advancing battery technology and creating long-range
electric vehicles.

Elon Musk, co-founder of PayPal, provided initial investment for Tesla and eventually took over
as CEO in 2008, leading the company to substantial growth and innovation.Musk might have
shared his reservations about taking the leadership role however the circumstances led to him
assuming the position. It might also cover his vision for Tesla's future and the challenges he
anticipated or encountered while leading the company.

Tesla started to gain prominence in 2012 upon releasing its flagship car, the Model S, which
positioned the company as a successful independent automaker and a pioneer in the electric car
market. By September 2014, the Model S achieved record sales in the U.S., selling 2,500 units in
a single month, and reaching 10,030 units sold in Q1 2015.As of March 2022, Tesla's market
capitalization stood at $909.6 billion, signifying its significant market value and growth.

Despite challenges and uncertainties, Tesla's journey from a startup to an industry leader remains
an extraordinary story, marking its place as a pioneer in the electric car market.

1.2 Strategic Business Units (SBUs)

Business Strategy Analysis:

● Research and Development: Significant investment focusing on automation, material

costs, and software updates.
● Production: Focus on manufacturing in Fremont, California, with key components built
in-house, including lithium-ion batteries.
● Supply Chain Strategy: Secured relationships with suppliers, minimizing leverage and
ensuring necessary resources.
● Human Resources: Intense work culture, hiring for innovation, continuous expansion
worldwide.
● Total Quality Management: Balancing productivity and quality, increased automation and
in-house manufacturing.
● Marketing: Relies on earned media, viral marketing, social media (especially Elon
Musk's engagement), and limited advertising.
 ● Pricing Strategy: Mix of premium pricing and market-oriented pricing for different car
models and products.
● Distribution Channels: Direct-to-consumer strategy, minimal intermediaries, focus on
online sales and company-owned stores.

1.3 Mission & Vision

Tesla's mission and vision statements encapsulate the company's essence and strategic direction
within the electric automobile and energy sectors. These statements align with Tesla's market
opportunities and guide its growth. The mission statement focuses on accelerating the global
transition to sustainable energy, signaling a shift from the previous focus solely on sustainable
transport under Elon Musk's leadership. It highlights acceleration, global transition, and
sustainable energy as its key components, indicating Tesla's goal to stimulate demand for
sustainable energy solutions globally and its diverse product range, including electric vehicles,
batteries, and solar panels.

Tesla's vision statement aims to establish itself as the most compelling car company of the 21st
century by leading the world's transition to electric vehicles. It emphasizes leadership, excellence
in the automotive industry, relevance in the modern era, and spearheading the global shift to
electric vehicles. However, the vision statement primarily focuses on transportation, not fully
reflecting Tesla's expanding interests in energy solutions beyond electric cars.

1.4 SWOT Analysis

Strengths:

​ -Top Employer Status

​ -Market Value Leadership
​ -Leading Electric Cars
​ -Surge in Deliveries
​ -Diversification Strategies
 ​ -Consistent Innovation
​ -Resilience in Economic Uncertainty
​ -Unique Management Strategy

Weaknesses:

​ -Manufacturing Complications
​ -Supply-Demand Imbalance
​ -Volume Production Challenges
​ -Battery Shortage
​ -Dependence on Elon Musk
​ -Financial Uncertainty
​ -Safety Concerns
​ -Internal Leadership Conflicts

Opportunities:

​ -Market Expansion
​ -Affordable Model Launch
​ -In-House Battery Production
​ -Entry into the Truck Segment
​ -Growing Market Confidence
​ -Air-Taxi Market Entry
​ -Large Fleet Orders

Threats:

​ -Liability Claims
​ -Intense Competition
​ -Product Defects
​ -Long-term Credibility
​ -Customer Adaptation
​ -Safety Concerns with Self-Driving
​ -Supply Disruptions
​ -Lithium-ion Risks
​ -Regulatory Uncertainty
​ -Impact of Elon Musk's Behavior
 ​ -Economic Downturn

1.5 Goals and Objectives

Tesla's goals revolve around transforming the automotive industry and energy sector through
innovation, sustainability, and global outreach. Their primary objective is to expedite the
transition to sustainable energy by creating cutting-edge electric vehicles and renewable energy
solutions. By consistently advancing electric vehicle technology, Tesla aims to make
high-performance electric cars more accessible and attractive to a wider audience. Their focus
extends globally, seeking to expand into new markets while tailoring products to meet regional
demands. Strategically, Tesla aims to increase production and deliveries, introduce innovative
products, achieve financial stability and growth, and enhance consumer adoption of electric
vehicles. Additionally, the company is committed to expanding its offerings beyond automobiles,
venturing into various sustainable energy solutions like solar power and energy storage, aligning
with their mission of promoting and actualizing sustainable energy practices.

1.6 Canadian Presence

https://www.investopedia.com/articles/personal-finance/061915/story-behind-teslas-success.asp

https://www.britannica.com/topic/Tesla-Motors

https://www.businessinsider.com/tesla-history-founders#2003-1

https://www.cnbc.com/2020/01/30/elon-musk-i-really-didnt-want-to-be-ceo-of-tesla.html

https://bstrategyhub.com/tesla-swot-analysis/

https://panmore.com/tesla-motors-inc-vision-statement-mission-statement-analysis

https://www.tesla.com/en_ca/blog/mission-tesla