Free Essay

Tesla Company China

In:

Submitted By icemaan
Words 404
Pages 2
Tesla
China

Explain your choice of the 3 potential target markets - why these?
• Which issues in the economic, cultural and political environment will the company have to consider when entering 3 new markets you suggested? How are those issues likely to impact?
d. Suggest modes of entry for the new markets.
1.Tesla’s battery recharged with charging ponts. Tesla Motors said it would partner with China’s second-largest mobile phone company, Unicom, to build a nationwide network of charging points for its electric vehicles.
The companies have signed a deal to build charging points at 400 China Unicom stores in 120 cities, and will also set up supercharging stations in 20 Chinese cities.
The provision of charging infrastructure in China is seen as key to growing sales of electric vehicles there.

It’s expected that the charging points will be completed by the end of this year and open to Tesla customers for free.
Tesla CEO has said he wants to invest heavily(!) in a recharging infrastructure for the country where EV sales have been slow despite central and local government subsidies(!) which started in 2009.

2. The Chinese government has been encouraging consumers to buy electric vehicles as one of the solutions to the country’s pollution problems, but the effort has been hindered by lack of charging infrastructure. Also,the Chinese government has set a goal – 30 % of all cars sold in Chinese market have to be EV to the beginning of 2016.

3. Panasonic Corporation and Tesla Motors, Inc. have signed an agreement that lays out their cooperation on the construction of a large-scale battery manufacturing plant in the United States, known as the Gigafactory. The Gigafactory is being created to enable a continuous reduction in the cost of long range battery packs in parallel with manufacturing at the volumes required to enable Tesla to meet its goal of advancing mass market electric vehicles

4.China has an import tax (25%) for cars made out of China.CEO of Tesla said they would built a factory and start producing cars in 2017 or 2018=> it means no import tax=> price will be 80.000 & instead of around 120.000 $
5.China is the country of Nouveau Riche and they have money to burn.Average driving distance less than 300 km(Tesla can go 400-500 km). China is the largest market for luxury brands(MB,BMW,Porsche,LVMH).

Similar Documents

Premium Essay

Ath Technology

...WORLD STEEL IN FIGURES 2014 TABLE OF CONTENTS FOREWORD Foreword .....................................................................................3 Safety and health .........................................................................4 Life cycle thinking .........................................................................5 Key facts about steel ....................................................................6 World crude steel production, 1950 to 2013 ..................................7 Top steel-producing companies, 2013 ...........................................8 Major steel-producing countries, 2012 and 2013 ...........................9 Crude steel production by process, 2013 ....................................10 Continuously-cast steel output, 2011 to 2013 ............................. 11 Monthly crude steel production, 2010 to 2013 .............................12 Steel production and use: geographical distribution, 2003 ...........14 Steel production and use: geographical distribution, 2013 ............15 Apparent steel use, 2007 to 2013 ...............................................16 Apparent steel use per capita, 2007 to 2013 ............................... 17 Pig iron, 2012 and 2013 ..............................................................18 Direct reduced iron production, 2006 to 2013..............................19 Iron ore, 2012 .............................................................................20 World iron ore trade by...

Words: 10921 - Pages: 44

Premium Essay

The Challenge That Faces Telsa Motors Trying to Enter the Chinese Market

...individuals who have the same interests and are brought together by similar or common goals (Lam and John 123). Organizational behavior is, therefore, the study of the factors that influence how employees and other people respond, feel and act to organizations and work and how the Company is affected by the external environment (McShane, Steven and Glinow 321).Organizational behavior reveals how people interact in a group and how the environment affects this interaction. The subsidiary of Telsa Motors in China was registered in the year 2006, but full operations began in 2013 when the trademark issue for Telsa Motors was resolved. Organizations must learn that their trademark is an international recognized concept but in some overseas market there can be problems with the mark of a Corporation. The best way to overcome these matters can be through franchises with existing domestic Corporations. Telsa Motors, Inc. is an American multinational Company that manufactures designs and sells electric vehicles, components of power train and battery products. Telsa is a publicly traded Company that sells its stock on the NASDAQ stock exchange market under the symbol TSLA. Marc Tarpenning and Martin Eberhard started Tesla Motors way back in 2003 (Hettich and Stewens 3). Business has been average for Telsa Motors, Inc and it is only on 2013 when Telsa Motors posted their first profits since the year 2003. An analysis of Telsa Motors reveals that they have ventured into the Chinese market where...

Words: 3588 - Pages: 15

Premium Essay

Case Study Tesla In China

...Tesla Model 3 prospects in China Tesla Motors unveiled its most affordable car so far, the Model 3 at the end of last month. The company is offering a reservation for a down payment of roughly $ 1000. As a result of such easy deal for such a charming thing, the company has received almost 400,000 pre-orders for its new Model 3 sedan. The excitement was already evident with hundreds of Tesla fans across the US and other main markets seen lined up outside dealerships before the car was even officially unveiled, and Tesla received more than twice the Model 3 pre-orders it expected. Model 3 starts with $ 35,000 for its basic model which has at least 215 miles of range. However, there is close to a year before the production version comes out. It...

Words: 849 - Pages: 4

Premium Essay

Tesla Motors

...Tesla Motors - Challenges in International Management. 1. Introductions Today, it is difficult to find anyone who is interested in cars, environmental protection, or IT technologies and who has never heard about Tesla Motors, the company which was found in 2003 by Elon Musk. He developed a person-to-person payment platform known as PayPal, which made him a billionaire. And after that he decided to focus on realization of his long-standing dreams: one is Space X – the company, the main purpose of which is the design of launch vehicles and the cargo delivery to the Space. This is the first commercial company to launch and dock a vehicle to the International Space Station. The second is Tesla Motors – the company, which pushes cars into the “New Age” - the age of the clean electric cars. Which wants put an end to uneconomical and low-tech cars of the past1.(http://ru.wikipedia.org/wiki/%D0%9C%D0%B0%D1%81%D0%BA,_%D0%AD%D0%BB%D0%BE%D0%BD) Internal combustion engine efficiency - though continuously improving over time - still causes criticism by the "clean energy" crowd. It is argued that in our time of innovation the slow increase in efficiency is not sufficient, and an alternative is needed. That is why the "green" energy adopters see Tesla Motors' Model S as a messiah of sorts. We should keep in mind that the ecological impact of internal combustion vehicles is often overlooked in pursuit of power, luxury factor, or comfort. IC engines produce carbon monoxide that has environmental...

Words: 5324 - Pages: 22

Premium Essay

Analysis on Tesla Motors

...Tesla Motors, Inc. 8 Step Case Analysis Method Khushboo E Jahan Marissa Shotwell-Tabke Guojun Zhang GBA 517 Dr. Kevin Moncrief Fall 2015 Table of Contents Introduction pg. 1 Company Background pg. 1 Products pg. 2 Business Mission pg. 3 Marketing Objectives pg. 4 Strategic Issues pg. 5 Promotion pg. 5 Pricing pg. 6 External Environment pg. 6 Distribution pg. 10 Constraints pg. 12 Firm Specific pg. 12 Limited Product List pg. 12 Limited Manufacturing capacity pg. 13 Distribution & Service Network pg. 13 Limited Exposure in Foreign Market pg. 14 Lithium Ion Battery Safety pg. 14 Industry Specific pg. 15 Fluctuating Foreign Exchange Rates pg. 15 Supply Chain Providers pg. 15 Future Growth Depends Upon Consumers’ Willingness to Adopt Electric Vehicles pg. 16 Environment and Safety Laws & Regulations pg. 16 SWOT Analysis pg. 18 Findings pg. 23 Finding #1 pg. 23 Finding #2 pg. 25 Finding #3 pg. 25 Solutions pg. 26 Solution #1 pg. 26 Solution #2 pg. 26 Solution #3 pg. 26 X. Recommendation and Justification pg. 28 XI. Implementation and Gantt Chart pg. 30 Implementation Time Table pg. 30 Gantt Chart pg. 32 XIII. References pg. 33 List of Figures Figures Figure 1 –...

Words: 4909 - Pages: 20

Premium Essay

Tessla Motor Case

...BACKGROUND: Tesla Motors is an American electric automotive car manufacturer that was formed in 2003. The company currently sells the high tech, high performance, luxury sports car the “Roadster”, which sells for over $100,000. Tesla will be releasing its new “Model S” sedan later this year, which sells at a more attractive $50,000 to $60,000 range. According to an article in Just-Auto, the future success of the company is heavily reliant on the success of the Model S, as the company is currently only receiving revenue from the sale of batteries to two of its investors. The company went public in 2010, and quickly had stock market success. But as of April 2011, the stock fell significantly, proving the public’s grim outlook concerning the electric car industry. The company sells cars online or in select showrooms in major high traffic metropolitan areas like Chicago. There are 18 dealers in North America, and the company has expanded a few dealerships to Europe and Asia. To differentiate their product and provide superior customer service, Tesla does not sell cars to any franchise dealers. As of 2010, the company had sold about 1,200 Roadsters. Because of the small amount of Tesla vehicles being driven around the country, according to an article from Business Insider, Tesla has a traveling team of repair men called “Rangers” to perform maintenance operations to Tesla vehicles. STRENGTHS: Tesla Motors has many positive characteristics that have kept them in business...

Words: 1088 - Pages: 5

Premium Essay

Brazil Group Project

...International Expansion Report Tesla Motors, Inc. November 21, 2011 Rio Consulting Group Michael Dawes James Hadel Daniel Ma Simon Qin International Expansion Report | Tesla Motors, Incorporated | Rio Consulting Group Executive Summary Founded in 2003, Tesla strives to design, develop, manufacture and sell high-performance fully electric vehicles and advanced electric vehicle powertrain components. Currently, Tesla’s presence internationally is limited to dealerships in Europe and a minor production plant in Britain. In order to be best positioned moving forward, we recommend expanding into Latin America and Asia Pacific to better fulfill CEO Elon Musk’s primary goal to commercialize electric vehicles all the way to mass market. As we predict slow growth for the standard auto industry, we believe the electric vehicle industry is extremely attractive for several reasons, including high oil prices, less greenhouse gas emissions and government incentives. Our best estimates suggest the electric vehicle industry will have average growth rates of 35 – 40% over the next 10 years. International expansion, if done correctly, can help improve upon Tesla’s current strategic position in order to become the global leader in electric vehicles. We have determined that the optimal points of entry for the market are in Brazil and Singapore. In addition to gained access to the two fastest growing regions in the segment, the two locations are attractive for many political, economic,...

Words: 12486 - Pages: 50

Premium Essay

Tesla

...Tesla Motors, Inc. designs, develops, manufactures, and sells electric vehicles, electric vehicle powertrain components, and stationary energy storage systems in the United States, China, Norway, and internationally. It also provides development services to develop electric vehicle powertrain components and systems for other automotive manufacturers. The company sells its products through a network of Tesla stores and galleries, as well as through Internet. Tesla Motors, Inc. was founded in 2003 and is headquartered in Palo Alto, California. We believe that more than 100 years after the invention of the internal combustion engine, incumbent automobile manufacturers are at a crossroads and face significant industry-wide challenges. The reliance on the gasoline-powered internal combustion engine as the principal automobile powertrain technology has raised environmental concerns, created dependence among industrialized and developing nations on oil largely imported from foreign nations and exposed consumers to volatile fuel prices. In addition, we believe the legacy investments made by incumbent automobile manufacturers in manufacturing and technology related to the internal combustion engine have to date inhibited rapid innovation in alternative fuel powertrain technologies. We believe these challenges offer a historic opportunity for companies with innovative electric powertrain technologies and that are unencumbered with legacy investments in the internal combustion engine...

Words: 710 - Pages: 3

Premium Essay

Tesla

...cool for the Tesla, but Tesla faces the biggest problem for this future technology. Supercharger location is the primary issue. Where geographically not all locations will be provided with a backup. There are 85 stations in the North America; it has complete West to East Coast coverage. There also have 14 stations in Europe. These statics make consume to consider that is it worth to buy a luxury electrical vehicle? In order to improve their marketing, tesla has a plan to build more superchargers in the Unite State. By the end of the 2015, they estimate and will build over 200 stations throughout the United States. Meanwhile, they also will expand their Europe market, and China market. On the other hand, they have battery swap service in their superchargers, Model S is designed to allow a fast battery swap, exchanging your battery for a fully charged battery in less than half the time it takes to refill a gas tank. But for this service has one problem is consume want fast or free. I think tesla management depart should find better way to instead of swap charge fee. http://www.teslamotors.com/supercharger Issue 3 Law of the Tesla for the franchised dealerships Tesla Motors faces sales and distributive problems in states due to laws that ban manufacturers from selling vehicles directly to consumers, and this results in hindrance of marketing strategies. “Tesla Motors prides itself on promoting a disruptive technology -- electric cars -- but it was Tesla itself that was...

Words: 538 - Pages: 3

Premium Essay

Tesla Company

...Tesla Company Marketing Program Group: Name: Institutional Affiliation: Table of Content Contents EXECUTIVE SUMMARY 2 TESLA COMPANY OVERVIEW 3 TESLA COMPANY STRATEGIC FOCUS AND PLAN 11 SITUATIONAL ANALYSIS OF TESLA COMPANY 12 SWOT Analysis Of Tesla Company (Strengths, Weaknesses, Opportunites and Threats) 12 TESLA COMPANY MARKETING PLAN 21 FINANCIAL ANALYSIS OF TESLA COMPANY 22 TESLA FIRM FINANCIAL PROJECTIONS AND FIVE FORCES ANALYSIS 24 PRODUCT 30 PRICING STRATEGIES AND APPROCAHES 30 PROMOTION STRATEGIES 31 PLACE AND DISTRIBUTION STRATEGIES 33 ORGANIZATION 34 IMPLEMENATION PLAN 34 EVALUATION 36 RECOMMENDATIONS AND CONCLUSION 37 APPENDIX 44 Tesla Company Marketing Program EXECUTIVE SUMMARY This paper will mainly focus on the analysis and investigation of Tesla’s firm overall marketing strategy and program. According to a number of research based studies and reports, it is clear and evident that Tesla Motors firm is an American company that mainly designs, manufactures, and sells electric cars and electric vehicle powertrain components in various regions globally. Tesla Motors is a public company that trades on the NASDAQ stock exchange under the symbol TSLA. Furthermore, Tesla’s stock has risen substantially in recent times according to a number of research based studies and reports. It is clear and evident that in 2014 TSLA stock climbed to about seventy percent. Tesla Motors, Inc. was founded in Silicon Valley, California...

Words: 12497 - Pages: 50

Premium Essay

Tesla Motors

...St. John’s University Graduate Student Managed Investment Fund Presents: Tesla Motors, Inc.: TSLA Analysts: Rutvig Bhatt (rutvig@gmail.com) Yanchen Liu (yanchen.liu12@stjohns.edu) Gaoting Liu (liugaoting@gmail.com) Kevin Shanker (kevin.shanker05@stjohns.edu) Share Data: Fundamentals: Price 5/7/14: $201.35 GAAP EPS (FY Dec’13): -0.62 Market Cap: $24.80B E[EPS2015]: 1.83 52 Week Range: $63.69 – $265.00 Beta: 1.10 1 Contents 1. Executive Summary……………………………………………………3 2. Company Overview……………………………………………………3 3. Industry Analysis………………………………………………………8 3.1 Industry Overview…………………………………………………9 3.2 Analysis of Competitive Forces – Porter’s 5 Forces………………9 4. Fundamental Analysis………………………………………………..11 5. EPS Forecast………………………………………………………….24 6. Relative Valuation Model…………………………………………….29 7. Absolute Valuation…………………………………………………...32 8. Risk Factors…………………………………………………………..35 9. Conclusion and Recommendation……………………………………38 Reference………………………………………………………………..39 2 1. Executive Summary BUY recommendation based on our relative valuation model, EPS forecast, and absolute valuation model (for 7% or higher constant growth rate) : The average price estimate is $294.98,compared to the current stock price of $189 as of 5/13/14 . It shows that Tesla is undervalued. According to our result of absolute valuation model, Tesla can be priced between $92.88 and $304.87, depending upon the constant growth rate of free cash flows after...

Words: 9501 - Pages: 39

Premium Essay

Report on Tesla Motors

...Investment Highlights GreenTech: Tesla Motors Poster Child for Green Mobility NeXt Up! www.nextupresearch.com With over 1063 Roadsters sold, Tesla, in our view, is the first to achieve commercial scale in sale of high performance electric cars. Our model assumes only sales of 4200 Model S (to be launched in 2012) cars even in 2015, which could prove conservative given Tesla‟s expectations for 20k cars a year. We note that Tesla has booked over 2200 orders for Model S. We expect the NUMMI plant (with a theoretical capacity of 400k cars) in Fremont to give the company ability to expand production at low capital cost. We expect Daimler and Toyota to provide for high recurring revenues in terms of powertrain sales. Unlike many of its competitors, Tesla has developed its own battery pack. We note that battery packs account for 30 – 40% of a car‟s cost, offering Tesla significant advantages as it scales. The company should be able to offer multiple models (such as SUV, minivans, sedans) based off the same platform without having to make significant R&D investment. June 29, 2010 Our valuation of $1.74 - $1.88B reflects stronger OEM sales offset by weaker Roadster revenues. Our revised per share price of $17.01 to $18.37 reflects the recent 3 to 1 reverse stock split and additional shares from the public offering. We note that the IPO (on 6/29/10) is priced at $17 per share. Investment Concerns The cost of ownership for Tesla Roadster is significantly higher than for...

Words: 13496 - Pages: 54

Premium Essay

Team Paper

...who their main competitors were, they replied our current competitors for Faraday include Tesla and Apple, even though Apple doesn’t have a car. Faraday Future’s (FF) vision is focused on the equal importance between automotive and technology. The company wants to build a brand that will change the world by making intelligent vehicles. This will certainly be a challenge for Faraday’s design team who claim to have a pioneer spirit and don’t need a safety net. The designer’s enthusiasm reflects the company’s vision in technology and design which could make a difference in the way cars are made in the future. New technology in vehicles could actually improve safety and reduce auto-related fatalities. Faraday is ready for the challenge and making a difference. Tesla Tesla Motors was founded in 2003 by a group of engineers in Silicon Valley who wanted to prove that electric cars could be better than gasoline-powered cars. With instant torque, incredible power, and zero emissions, Tesla’s product would be cars without compromise. Each new generation would be increasingly affordable, helping the company work towards its mission: to accelerate the world’s transition to sustainable transportation. Tesla’s engineers first designed a powertrain for a sports car built around an AC induction motor, patented in 1888 by Nikola Tesla, the inventor who inspired the company’s name. The resulting Tesla Roadster was...

Words: 3331 - Pages: 14

Premium Essay

Swot Analysis Of Tesla Motors

...TESLA MOTORS’ DISRUPTIVE INNOVATION Ushnik Dasgupta New York University Global Innovation April 26, 2016 ABSTRACT Tesla Motor’s journey since its foundation in 2003 to being ranked third among the most innovative companies in the world in 2015 according to Fortune (Murray, 2015) and the third most innovative company in the automotive sector in 2016 according to Fast Company (The Most Innovative Companies of 2016: Top Companies by Sector, 2016), demonstrates their ability and determination to upset the status quo and eagerness to disrupt the automotive market by trying to change the global preference towards greener electric vehicles. However, is Tesla’s approach towards this niche market by manufacturing models...

Words: 1961 - Pages: 8

Premium Essay

Student

...Daniel Ammar Ziv Livne Guillaume Lesouhaitier Date: 11 December 2013 Group Assignment December 2013 High-Technology Acquisitions DAIMLER | TESLA MOTORS -i- Contents Page 1 2 3 4 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 5 5.1 5.2 6 6.1 6.2 6.3 7 8 8.1 8.2 INTRODUCTION ............................................................................................................. 1 ACQUIRER OVERVIEW | DAIMLER ............................................................................. 1 TARGET OVERVIEW | TESLA MOTORS ..................................................................... 3 STRATEGIC APPROACH AND SYNERGIES EVALUATION ...................................... 5 THE ELECTRIC VEHICLE MARKET ................................................................................... 5 DAIMLER'S MOTIVATION TO ENTER THE MARKET............................................................. 6 DAIMLER'S MOTIVATION TO ACQUIRE TESLA ................................................................... 6 DAIMLER ADVANTAGE TO ACQUIRE TESLA OVER COMPETITORS ........................................ 7 MOVE FROM PARTNERSHIP WITH TESLA TO ACQUISITION ................................................ 7 TESLA'S MOTIVATION .................................................................................................... 8 DAIMLER AND TESLA SYNC ............................................................................................ 9 TECHNOLOGY STRATEGY MATRIX ............................

Words: 5999 - Pages: 24