Tesla Motor - Research Paper Example

Tesla Motors Tesla Motors is an American public company trading on the NASDAQ stock exchange that design, manufacturers and deals in electric cars and electric vehicle powertrain although it first gained widespread attention widespread attention by producing the Tesla Roadster. The company also markets electric powertrain components and considers it an independent automaker where they plan to offer electric cars at a cheaper price to the average consumers. Tesla’s designs and ideas have hugely changed the world because of the introduction of electric cars and advancement in technological advancements when most cars use gasoline. Tesla Motors has hugely invested in promoting its products through media such as wired magazine. Tesla is greatly committed in informing the public about its new revolutionary products. Tesla Motors focusses on their core competencies as well as vehicle engineering including its design studio and the development of Model S. I. Pros and Cons 1. Environmental Friendly Rise of global warming has been curbed by the introduction of electric cars by Tesla Motors. Because of the higher demand of environmental friendly products, Tesla has embarked on manufacturing environmentally friendly electric cars. Behrmann explains that the company has ensured that the rate of pollution is reduced to a smaller amount (Web). Electric cars have risen significantly because most people become aware of the need to conserve environment. Most people have turned to eco-friendly cars that act as a substitute to current fuel cars. Globally, 2. Government Support According to Harkinson, Tesla Motors has greatly benefited from the government granted privilege that has hugely resulted from political favoritism (Web). The Company has benefited from a low interest loan from the government, which it has successfully used in improving its technology (Koopman Web). The loan has successfully seen the company succeeding in its electric cars program alongside a series of complex federal and state subsidies. Harkinson argues that Tesla uses the subsidies in their advertisements and promotions to imply that they offer down payment to their clients and even encourages other states that do not offer subsidies to their clients (Web). 3. No gas Fee Petroleum is a limited resource that has caused environmental disasters and demands a higher energy usage. Behrmann asserts that fuel hugely contributes to greenhouse gas emissions and therefore reducing the use oil for transportation can greatly minimize emission (Web). Tesla Motors focusses on creating a cleaner and more independent paradigm by reducing the transportation sector’s dependence on petroleum. There is need to increase efficient power plant and renewables to counter the higher number of environment polluters especially fossil fuel. 4. Unique Tesla Motors is leading in manufacturing electric car batteries as well as electric vehicle sports activities cars that can run on the highways and utilize battery of lithium-ion and the foremost electric car that may voyage more than 200 miles per charge (Howard Web). Americans who are environmental conscious buy many cars made by Tesla Motors. There are however various ways in which global warming may be minimized such as reducing amount of fuel burnt in the air by decreasing amount of car use and using energy efficient vehicles. Cons 1. Safety Problem Moreover, Tesla’s beautiful cars have faced concerns over potential fire risks. This makes customers question the company’s quality and safety especially in North America where many incidences of fire have been experienced. However, the company’s technological features have ensured that the people are warned before they are hurt by fire (Noland Web). 2. Battery life/ Price/ Limited production Despite the achievements that the company has gained from its technology, Tesla still makes losses and does not meet its sales target. Strong demand for Model S has never been recorded as expected and the production is not sufficient because of the supply constraint the company undergoes. Production of Model S is very high and the supply of battery sale faces some constraints. Ohnsman explains that battery supply issue has hugely affected the company negatively thus tarnishing the company that is always committed (Web). The price of the batteries is also too high and has a short life. Users may find themselves stack on the highways because of the low battery life. I. Response Tesla Motors is further intending to treat its employees by rewarding and empowering them to work smart towards the benefit of the company. Designers and other manufacturing engineers are been awarded bonuses for a uniquely designed car to encourage them to work even harder. Employee empowerment translates to better sales and high a quality customer care services. Tesla Motors is committed to streamlining its operations and reposition itself with its founding principles. The company strives to focus on its original competencies while continuously concentrating on the customer satisfaction. With the current economic recovery and increase in the global market, the company is expecting a rise in sales and a wider geographical coverage. A. Customer Social media and other conventional media advertising is used to reach the many people who have the notion that electric cars may make them stranded on the road. Tesla Motors focusses on building its custom IT solutions that is environment compliant to the company’s speed, agility, and e-commerce demand. The ERP that is developed by the highly qualified IT experts from the company, which is unique and cannot work for other car manufacturers (Rechtin Web). The company uses its e-commerce system to help people buy cars as seamlessly as possible to many customers’ online using processes and features unique to the company. Tesla Motors intends to scale up production of model S while maintaining its quality and sell it in new markets. The company understands the fact that an electric car is an object of desire, a modern appliance and a car that drives and sells differently thus making Tesla unique compared to the other carmakers (Rechtin Web). B. Technology Tesla is committed to creating an opportunity to disrupt a trillion dollar electric utility industry by being a leader in commercializing battery packs. According to Musk the company spends on a highly innovative battery research and production venture that sees a huge reduction in the cost of Tesla’s battery packs and speed the pace of battery innovation (Web). The company works hard on convincing its skeptical mainstream buyers that the electric-car technology ensures smooth and satisfactory journey that will not see them stranded on the road (Rechtin Web). C. Society Tesla Motors has done a lot to the society including the reduction of green gas production that contributes too global warming. It has also lowered the price of its cars to make the cars affordable to many people in the society. Tesla intends to increase sells by lowering Gen III cars prices to expand the potential buyer base without the need for installing a home charger that may be expensive (Rechtin Web). Installation price may be expensive for the targeted major metropolitan people living in condominiums or townhouses where the ability to install a charging port may be restricted. Tesla has created a great difference by creating superchargers stationed between cities and everywhere in the country. Amidst emergence of driverless cars, Tesla Motors is in the forefront of developing vehicle-level decision making and self-driving cars. This will see Tesla Motors competing with other companies such as Ford who have the capabilities of developing electric cars (Hirsch Web). Tesla has set pace in the industry and is committed to making its products even more superior in terms of quality and design while increasing production. Tesla further uses auto shows held during the winter to boost sales of the cars. There are also online and interactive social groups such as Facebook where the company encourages customers to post feedback and ask any question regarding the company and its products. This helps in improving customer care services and marketing the company (Rechtin Web). It is therefore important to note that Tesla’s customers are very lucky in having the opportunity to interact with the company’s staffs from the social media such as Facebook. The company has always received positive feedbacks except for a few challenges they have faced such as the battery life and the fire incidences (Lee Web). However, Tesla has successfully dealt with the challenges facing its new technology, societal perception, and their customers’ perception. Tesla’s is an important and one of the most creative companies in the auto industry. It is undeniable that the society has hugely embraced the uniqueness provided by the company. Works Cited Behrmann, Elisabeth. How Tesla Motors Inc’s electric car batteries are adding to China’s pollution woes. Financial Post, 14 Mar. 2014. Web. 22 Apr. 2014. . Harkinson, Josh. Taxpayer Subsidies Helped Tesla Motors, So Why Does Elon Musk Slam Them? Mother Jones, Sep/ Oct. 2013. Web. 22 Apr. 2014. . Hirsch, Jerry. Tesla Motors shares zoom to record high on favorable reports. Los Angeles Times 25 Feb. 2014. . Howard, Bill. Could a bricked Tesla battery cost you $40,000? Extreme Tech, 24 Feb. 2012. Web. 22 Apr. 2014. . Koopman, Christopher. Tesla Is No Success Story: Tesla is only profitable thanks to politics and tax subsidies. USNews 3 Jun. 2013. Web. 22 Apr. 2014. . Lee, Andrew. Fires, Problems Persist for Tesla. He Cornell Daily Sun, 26 Nov. 2013. Web. 22 Apr. 2014. . Musk, Elon. Tesla Adds Titanium Underbody Shield and Aluminum Deflector Plates to Model S. Tesla Motors, 28 Mar. 2014. Web. 22 Apr. 2014. . Noland, David. Life With Tesla Model S: Battery Safety Shield In Detail (Photos). Green Car Reports, 10 Apr. 2014. Web. 22 Apr. 2014. . Ohnsman, Alan. Tesla’s Musk Accelerating Vehicle Output Through 2014. Bloomberg, 21 Feb. 2014. Web. 22 Apr. 2014. . Rechtin, Mark. Audacious growth plans will stretch Tesla beyond its comfort zone. Automotive News 13 Jan. 2014. Web. 22 Apr. 2014. . The Financial Times Ltd. Tesla Motors Inc., 2014. Web. 22 Apr. 2014. . Read More