Determining the Financial Issues Affecting the Tesla Company - Case Study Example

The paper "Determining the Financial Issues Affecting the Tesla Company" is an inspiring example of a case study on finance and accounting. The motor vehicle industry remains one of the highly competitive industries in the world. Most of the players in this industry are faced with challenges such as innovation and financial challenges. Tesla Company is one of the American-based automobile companies focusing on the manufacturing and sale of electric cars, solar panels, and energy saver batteries. This study focused on determining the financial issues affecting the company in regards to its operations, financial position, and its prospects in the market. It analyzed various issues, statements, and financial activities of the company in view of the market trends.

Overview of the company

Tesla Inc, which was formerly referred to as Tesla Motors, is a leading automobile manufacturer in Palo Alto, California. The company deals also in energy storage as well as the production of solar panels. Tesla Inc came into operations in the year 2003 being a brainchild of Martin Eberhard and Marc Tarpenning. The major productions happening in the company is the manufacture of electric cars which are completely new and unique in the motor vehicle industry. Besides, the company produces lithium-ion batteries and solar panels. There are two common models associated with Tesla Company, and they include the Model S sedan and the Model X sports utility vehicle (SUV). The S model was brought into the market in the year 2012 while the X model hit the market in 2015and has since become prominent and competitive even in the sporting industry. Currently, the company services American, European, and the Adianm markets with high-end products that seem to be highly competitive (Tesla 2013).

Tesla Inc is known for its direct selling strategies which have seen the company explores new markets and delivers the items required on their own procedures. Besides, the company enjoys the existence of a service network that already exists in the motor vehicle industry. These networks have had positive impacts on the distributing patterns of the company and have further accelerated the processes of service deliveries in the market.