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Tesla (electrocar) - Essay Example

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Tesla (Eectrocar) Name of the of the University Date Part 1: Industry Profile Industry Data Tesla Motors Products. Tesla Motors Inc. is a popular automobile company that is based on California. The company primarily engages in producing, designing and manufacturing electric cars…
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Tesla (electrocar)

Download file to see previous pages... The use of electric cars is increasing in all economies in the current epoch. A battery stored electrical energy or electric motor helps to run the contemporary electric cars manufactured by Tesla Motors. The modern electric cars produced by Tesla comprises of efficient electric motors that facilitates in generating torque. Torque helps to generate smooth and strong acceleration to such cars. The Tesla electric cars are considered to be the safest cars in the automobile market. There are many car models of Tesla:- Model S: a 7 seating electric car generating no emissions. 265MI EPA range of certification. 4.2 sec, 0-60 (acceleration). Model X: comprising of a dual motor, one of the motors is well equipped to work well in all road and climatic conditions, generating a torque of 50%. 5 sec, 0-60 (acceleration). It has a 60 or 85 kWh powered battery. The model uses does not uses any gasoline. The firm has planned for its new designed electric car, Model X Design Prototype, the car would be launched for sale from 2014 and its price would be that of Model S. All the products of Tesla are eco friendly and unique in style (Teslamotors, 2013). Other Large Competitors. Vehicule Electriques Pininfarina Bollore, BYD Auto, Nissan and Renault are four giant automobile companies that have launched excellent models of electric cars. Such cars symbolize class, status and environmental consciousness of the users. SIC Codes. The Standard Industrial Classification Code (SIC) of the automobile industry in United State is 37111. Trade Magazines and Labor Unions. The automobile firms like Tesla require large number of laborers for its manufacturing, operational, marketing and retail outlets. Several trade magazines have talked about the good virtues of the automobile industry facilitating high employment generation. However, it should also be considered that when the number of employees in an industry is high, the bargaining power of the workers rises. Labor union leaders ensure interests of the employers in the workplaces. It has been empirically observed that the strong labor unions of the automobile market in U.S. have compromised the competitive powers of the companies in the global market. In the last thirty years it has been found that the labor union leaders have forced American firms to increase the level of trade barriers. Labor unions have made U.S. automobile companies lose their market shares to the foreign rivals. The labor unions demand for high wages from the companies. Delphi pays $76/hr to its workers. It is estimated that in every car sales of a company in U.S., the labor union achieves a benefit of $2000. Sometimes the big automobile companies like Ford have ceased some of its operating plants for pricy labor costs (Teslamotors, 2013). Figure 1: U.S. Auto Labor Markets (Source: Author’s Creation) The above graph shows the U.S. auto market, high intervened wages rates set by the labor unions reduce the quantity of car produces and increases the cost prices. It generates a deadweight loss into the industry. Imports and Exports. Despite of the disturbances of labor unions, U.S. auto industry enumerated a surplus trade balance from 2010 to 2011. The aggregate imports and exports of cars across the world on average in U.S. have increased. The percentage change in imports is 12.4% and percentage change in exports is 17.9%. On total, aggregate sales have increased and have changed by 7%. However, when regional disparities are ...Download file to see next pagesRead More
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