...STRATEGY / SECTION: D300 Tesla Motors Inc. Case Synopsis Date: March 17, 2014 [Edited] Yafeng(Elsie) Liu Yingying Kang Hao Wu Chan Chen Edith Hon Firm history Background Tesla Motors, Inc. is an American company that was founded in 2003 by a group of brilliant and innovative Silicon Valley engineers. These engineers proved that electric vehicles could be awesome substitute of the gasoline powered cars. Tesla not only designs, produces and markets electric cars, but it also provides advance electric vehicle powertrain components to other automakers including Daimler and Toyota. (Tesla Motors) Tesla headquarters is located in Palo Alto, California, and it has wholly-owned subsidiaries in North America, Europe and Asia. At present, Tesla has more than 2000 employees. It has 31 stores and service locations spread worldwide, and more stores are expected to be opened in the future. In 2012, Tesla opened its first store in Toronto as the first step to enter the Canadian market (Tesla Motors). Tesla aims to offer high-performance and electrically powered vehicle at a price affordable to the average consumer. In 2008, Tesla first gained widespread attention by producing the Tesla Roadster, a solely electric operated sports car. Tesla then expanded its technological advantage to the luxury sedan market. Model S, a zero emission and sustainable luxury sedan, was then introduced as their second vehicle to the electric vehicle in 2012. The third model named Tesla model X is scheduled...
Words: 3201 - Pages: 13
...Environmental and Consumer Influences of Tesla Motors Model S Consumer behavior is “the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society” (Schiffman, Kanuk, & Wisenblit, 2010). An important part of growing up is when you reach the age that you can drive an automobile. You dream of the type of car you want, before you even reach the age that you can get your Driver’s License. This is because it psychologically defines who you are and projects to others your social status. As we continue through our cycle of life we adapt to our surroundings and make different choices of vehicles because we have evolved as a consumer. In most cases no matter what our culture, subculture, and values are; the global economic situation and technological advancements of the global tribe lead our decision making process. It will not be of importance what your level of achievement and success is or the degree of education you have obtained. The automobile that you choose will define many aspects of what your perceived social factors are today. The Tesla Model S is a vehicle unlike all others and has its own unique customer base. Motives, Perception, Attitudes, and Personality The Model S Tesla Motors experience starts well before you get into the car. Nothing has been so anticipated since the iPhone ® or iPad...
Words: 1631 - Pages: 7
...gasoline only vehicles that will help decrease the environmental footprint of Lotus Rental Cars. Cost of Vehicles The current vehicle, the 2014 Lotus Evora S, is the primary vehicle in Lotus Rental Car fleet. The Lotus Evora S has a base price of $69,965 to $81,465 (Hearst Communications, Inc., 2015). The cost of the Lotus depends on what options and features are added to or come with the vehicle. The two new alternative fuel vehicles to be added to the fleet, the 2014 Cadillac ELR and the 2014 Tesla Roadster Model S, cost around the same as the Lotus Evora S. The General Motors (2015) website shows that the Cadillac ELR has a base price of $75,995 to $82,135. The price of the vehicle changes depending on what size engine, options, and features are put into the vehicle. The Tesla Motors (2015) website has the Tesla Roadster Model S priced from $71,070 to $105,670. This price range also depends on the features that are installed on the car. Both the Cadillac ELR and the Tesla Roadster Model S have comparable prices, engine sizes, options, and features...
Words: 1845 - Pages: 8
...FRANK T. ROTHAERMEL DAVID R. KING Tesla Motors, Inc. January 1, 2015. Elon Musk, chief executive officer (CEO) of Tesla is taking it easy on this New Year’s Day. While having his coffee, he scrolls through some recent issues of The Wall Street Journal on his iPad. A headline from one current story jumps out at him, “Gasoline prices have declined for 88 consecutive days, the longest streak of falling prices on record.”1 The slide in gas prices, which began in September 2014, also happened to coincide with the slide in Tesla Motors (TSLA) stock. With increasing oil, and therefore gas, prices, people had an incentive for purchasing electric cars. Now with gas prices drop- ping, the incentive to buy would start to become less of one, and the demand for the product would probably drop. This was one of the challenges facing Musk on this New Year’s Day. In addition to hav- ing to contend with lower selling costs due to rising production, Tesla was also confronting increasing competition and economic headwinds that were likely going to lower the demand for electric cars. Musk is a serial entrepreneur longing to leave a legacy, and he believes that Tesla just might be the company that will help him leave his mark. He has a large profile already and has been described as “Henry Ford and Robert Oppenheimer in one person,” as well as “Tony Stark, the eccentric inventor better known as Iron Man.”2, 3 (In fact, Musk made a cameo appearance in Iron Man 2.) But, with sev- eral pressing...
Words: 10974 - Pages: 44
...Tesla: Supercharging the Future by Akash G. Nandi An honors thesis submitted in partial fulfillment of the requirements for the degree of Bachelor of Science Undergraduate College Leonard N. Stern School of Business New York University May 2013 Professor Marti G. Subrahmanyam Faculty Adviser Professor Joseph Foudy Thesis Adviser 1 I. Introduction...................................................................................................................Page 4 A. The Inefficiency of Cars Today B. Thesis Objective C. Thesis II. Research and Resources...............................................................................................Page 7 A. Research Framework B. Research Perspectives C. Resources and Data III. Tesla in Context.............................................................................................................Page 9 A. The Global Auto Industry B. Tesla: The Innovative Disrupter C. Sparking the Electric Revolution IV. The Man Behind the Machine...................................................................................Page 12 A. Elon Musk B. Entrepreneur from the Start C. Space X V. Tesla Motors Overview...............................................................................................Page 15 A. Company Offerings B. Phase I. Roadster C. Phase II. Models S and X 2 D. Phase III. Project BlueStar VI. How It Works: The Model S......................................................................................Page...
Words: 12024 - Pages: 49
...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
...Telsa Motors trying to enter the Chinese market Organizational behavior is centered on how people act or behave in an organization. An organization is simply a group of 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...
Words: 3588 - Pages: 15
...For the exclusive use of T. Song, 2015. 9-714-413 REV: JANUARY 24, 2014 ERIC VAN DEN STEEN Tesla Motors “Tesla is in California, so it is not April Fool’s yet!” tweeted Elon Musk, CEO of Tesla Motors, around 10 PM PT on March 31, 2013. “First profitable Q for Tesla thanks to awesome customers & hard work by a super dedicated team”1 he had tweeted a few minutes earlier. And indeed, on May 8, Tesla announced a net income of more than $10mln on $560 mln in sales.2 Tesla had outsold both Nissan and GM in electric cars in the U.S.3 Its Model S had sold more than the BMW 7 and Audi A8 combined.4 Tesla raised its Model S sales target for its first full year from 20,000 to 21,000 cars.5 Over the next three months, its stock price almost tripled.6 In its 10 years since founding, Tesla had launched both a high-end limited edition “Tesla Roadster” and its “Model S” production car, and was now taking reservations on its upcoming “Model X” electric crossover SUV. Despite a public controversy about its range, the Model S had received the coveted Car of the Year award and earned the highest rating that Consumer Reports ever gave to a car, an astonishing feat for a company that was only at its second car. While some of its most visible EV competitors went bankrupt or halted production,7 Tesla became profitable. Elon Musk wanted Tesla to be a mass manufacturer of electric cars.8 Becoming profitable meant that that goal was within reach. Or was it not? The Car Business ...
Words: 11859 - Pages: 48
...may be subject to copyright under the Act. Any further reproduction or communication of this material by you may be the subject of copyright protection under the Act. Do not remove this notice. For more information please contact copyright@cqu.edu.au CASE 6 Tesla Motors and the U.S. Auto Industry (Case B) Michael Janovec Georgia Institute ofTechnology Frank T. Rothaermel Georgia Institute ofTechnology LON MUSK, CEO of Tesla Motors, sped past the security guard in his brand new Tesla Roadster without waving . Despite his reputation as a brash leader, Mr. Musk normally took the time t0 exchange pleasam tries in the morning . Today, however, Mr. Musk's mind was traveling a mile a minute. The company had just filed its first annual 10-K with the U.S. Securities and Exchange Commission (SEC), and Musk had an important meeting with Tesla's board of directors at the end of the week to discuss the company's future. As Mr. Musk walked into his office, a photo caught his eye. It was a picture of him ringing the opening bell at the NASDAQ on June 29, 2010, the day that Tesla went public. As he looked at the picture, he thought about how that day had changed his life and the life of his fledgling company. Tesla had gained a much-needed capital injection, but along with the financial boost also came increased scrutiny from the board of directors. Now instead of answering only to himself, Musk faced questions from the board about how he planned to reverse a troubling...
Words: 3458 - Pages: 14
...1. History of Tesla Motors Global warming is the issue of universe but let’s keep it limited with our planet EARTH, to save earth from global warming Tesla motors took great step ahead to control pollution on EARTH by discovering electric car with high cost saving cars, soon they will be launch electric motorcycles. Tesla motors are baby of great person ELON MUSK and his team, who is founder of PAYPAL, SPACEX and now TESLA MOTORS. His visionary thinking to save planet by pollutions, creating spacecraft which is reusable gave him big success in markets of world. Company’s main strategy is to provide high cost affordable electric cars, which will help us to save earth from pollution. (Executives. (2012, June 26). Executive Bios. Retrieved March 31, 2014) Tesla Motors, Inc. is an American company that designs, manufactures and sells electric cars and electric vehicle power train components (EVs).Tesla Motors is public company that trades on the NASDAQ stock exchange under the symbol TSLA. In the first quarter of 2013, Tesla posted profits for the first time in its ten year history.Tesla Motors first gained widespread attention by producing the Tesla Roadster, the first fully electric sports car. The company's second vehicle was the Model S, a fully electric luxury sedan.Tesla also markets electric power-train components, including lithium-ion battery packs, to automakers, including Daimler and Toyota.Tesla's CEO, Elon Musk, has said he envisions Tesla as an independent automaker...
Words: 1568 - Pages: 7
...Tesla Motors 3500 Deer Creek Palo Alto, CA 94304 650-681-5000 650-681-5101 I. I. Background and Introduction The focus of this analysis is on Tesla Motors and the electric vehicles they design, develop, and manufacture. Tesla Motors was incorporated in 2003 and using technology developed at the headquarters in California the company introduced the Tesla Roadster in 2008 (Tesla Motors, 2010b). On June 28, 2010 the company filed an initial public offering that was accepted by the SEC. They have also become business partners with Toyota Motor Corporation to develop an electronic version of the Toyota RAV4 to be sold in 2012 (Tesla Motors, 2010b). The importance of this analysis is two-fold. First, if a company can successfully develop a fully electric vehicle that is affordable and has mass market appeal it would mark a realistic solution to the diminishing worldwide oil supplies. Second, the technology that would be developed could be used as a springboard for the entire automotive industry. As with any business that is being hinged on new technology, there are significant risks and issues that could potentially be detrimental to the company. Being a new company, there is a very limited operating history for potential investors to go by (Tesla Motors, 2010b). Therefore, future earnings cannot be predicted based on past earnings. The company is losing money and in the SEC filing for the last quarter they state that they expect to keep losing money for...
Words: 15318 - Pages: 62
...8 Available online at www.sciencedirect.com ScienceDirect journal homepage: www.elsevier.com/locate/he Changing the fate of Fuel Cell Vehicles: Can lessons be learnt from Tesla Motors? Scott Hardman a,*, Eric Shiu b, Robert Steinberger-Wilckens a Centre for Hydrogen and Fuel Cell Research, School of Chemical Engineering, University of Birmingham, Birmingham, B15 2TT, UK b Birmingham Business School, University House, University of Birmingham, Birmingham, B15 2TT, UK a article info Article history: Received 15 September 2014 Received in revised form 24 November 2014 Accepted 29 November 2014 Available online 24 December 2014 Keywords: Fuel cell Market entry Tesla Electric vehicle marketing abstract Fuel Cell Vehicles (FCVs) are a disruptive innovation and are currently looking towards niche market entry. However, commercialisation has been unsuccessful thus far and there is a limited amount of literature that can guide their market entry. In this paper a historical case study is undertaken which looks at Tesla Motors high-end encroachment market entry strategy. FCVs have been compared to Tesla vehicles due to their similarities; both are disruptive innovations, both are high cost and both are zero emission vehicles. Therefore this paper looks at what can be learned form Tesla Motors successful market entry strategy and proposes a market entry strategy for FCVs. It was found that FCVs need to enact a paradigm shift from their current market entry strategy to one...
Words: 10965 - Pages: 44
...SECTION I: Introduction/Executive Summary Tesla Motors, Inc. is an American company that designs, manufactures and sells electric cars and electric vehicle powertrain components. Named after the scientist Nikola Tesla, Tesla Motors ($TSLA) was founded in 2003. Exactly who founded Tesla Motors can be discussed, but it was probably by a group of intrepid Silicon Valley engineers Martin Eberhard, Marc Tarpenning, and Ian Wright. Their goal was to build an electric vehicle with the same performance as a Porsche and more environmental friendly than a Toyota Prius. The problem was that the founders didn't have the money needed to realize their idea, so they contacted Elon Musk, who decided to invest in the company. Elon Musk had earlier founded the companies Zip2, PayPal, and SpaceX. The difference between Elon Musk and the founders was that Elon Musk wanted Tesla Motors to become an improved General Motors with several car models, while the original founders wanted to design only a sports car. Elon Musk became interested in electric cars because he is well aware of peak oil. The idea behind peak oil is that oil is a finite resource we will run out of. Elon Musk believes the production of oil will begin to decrease after year 2020. As the production of oil decreases, the price of oil will increase and more people will buy electric cars SECTION II: Current Situation Tesla Motors headquarters is in Palo Alto, California. Its goal is to speed up this transition from gasoline cars to...
Words: 8262 - Pages: 34
...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
...long time. This is the reason why every company spend legal amount of money in marketing their product so it can build relationship with customers which can stick to them for a long time. As far as my personal choice is concerned, I have many favorite brands for different requirements but for this paper I will chose my favorite brand which is Tesla Motors. Explain a minimum of three reasons why you are passionate about this brand Tesla Motors, Inc. is US based Company which designs, manufactures and sells electric cars and electric vehicles power-train components. Tesla, which was founded in 2003 by Martin Eberhard and Elon Musk, has pushed the envelope beyond what most automakers thought possible. The company's Silicon Valley-style "techpreneurship" enabled it to move faster, work more efficiently, and create ground breaking new ideas around sustainable mobility and automotive technology while proving that electric cars could be better than gasoline-powered cars. Tesla has had a competitive advantage over auto industry rivals in design innovation since day one. Located in arguably the center of the world for technological innovation, Tesla was able not only to construct its vision of mobility in Silicon Valley, but also recruit its employees from many of the leading technology companies to design and build the car there as well. According to Forbs magazine “The Model S was the first electric vehicle to ever receive Motortrend’s Car of the Year Award – one of the most coveted...
Words: 1175 - Pages: 5
