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Tesla Motors Unit




Whatis Tesla Motors in the business to do?

Teslais a unique auto-manufacturing company based in Palo Alto, Californiathat produces electric cars and their components. The firm wasestablished in by its co-founders Martin Eberhard and Marc Tarpenningbefore Elon Musk joined the company as one of the major investors.The company gained prominence in 2008 after the production of theRoadster sports car model. Despite the car`s popularity, it sold only2450 units in over 30 countries. The cars are prohibitively priced,which affects sales and profitability as it recorded a net loss of$283 million in the first quarter of 2015.1

Similarlosses have been reported in the last several years. As of 2015, thefirm delivered to full capacity of 50,000 units from its former NUMMIplant in Fremont, California. It plans on increasing this number to500,000 units annually by 2018.2Given the investment attention the firm is attracting and the settingup of new facilities, it can reach this capacity. Again, verticalintegration that targets firms in the industry will boost thecompany`s corporate strategy. In fact, there are promises of solarpowered vehicles whose batteries are chargeable when driving andparked.

Describethe features of a Tesla?

Comparedto other Tesla cars, model 3 is relatively affordable costing about$35,000 with a range of at least 215 miles. The car is spaciousenough to seat adults comfortably. It also has enhanced safetyfeatures, the best in the category. The car also has incredibleacceleration moving from zero to 60 mph in six seconds.3It also has a supercharging technology that allows fast charging.Apart from more advanced cars, the firm is keen to develop heavierelectric vehicles. It is also working on self-driving cars. Thesecars would reduce traffic accidents drastically. If about 90% of carsin America were self-driving, vehicular accidents would fall from 6million a year to 1.3 million,increase fuel efficiency and even enhance human productivity.4Again, these cars will mark a huge shift in our modern lives wherepeople drive for leisure, as jobs, and even as sports. Thesociocultural and economic shift is comparable to the invention ofthe first car by Henry Ford.

Whois Elon Musk?

ElonMusk is the current CEO of Tesla Motors. He also has various businessinterests in SpaceX and other firms. He was born on June 28, 1971, inPretoria, South Africa to a Canadian woman and a south-African bornAmerican.5He seems to have incredible business and leadership skills based onhis successes in entrepreneurship.6He is described as a ruthless businessman. He is also innovativegiven his firms` products. As a visionary, he has great plans for hiscompany and the world. He plans to fight climate change and make massspace travel a reality. As for Tesla, he envisions eliminating fossilfuels and incorporating solar technology in electric and self-drivingcars.7Musk is also involved in SpaceX, a firm that designs, manufactures,and launches advanced rockets and spacecraft. Musk has successfullyemployed innovation to develop unique products in the market and beatthe competition.8

Whatpromotional mix would you recommend to Musk

Thegreatest challenge for Tesla relates to the issue of price. There isa need to link the environmental benefits of driving electric cars tomonetary value in terms saved fuel costs and emissions. My approachwould be to develop a formula that calculates the dollar value ofemissions and use that figure for marketing. I would also modify theproduct to incorporate biofuels into some models. This will offer themarket the needed variety. As for personal selling, the firm shouldtarget families and portray how reduced emissions in cars reducerespiratory diseases.

Wouldyou buy a Tesla?

Ihave driven a Tesla car during a motor show. The car is impressive,but I do not think it is worth the cost. The notion of sports carswith such a small range is not fair. I would consider buying a Teslacar if they could increase the range and lower the price. However, Ishare their vision of saving the planet. Therefore, I would work forthe firm just to be part of the team saving the world and alsobenefit from their innovative approach to business.


Garner,Dwight, ‘Elon Musk,’ a Biography by Ashlee Vance, Paints a DrivenPortrait. NewYork

Times.Lastmodified 2015/05/20.http://www.nytimes.com/2015/05/13/books/elon-musk-a-biography-by-ashlee-vance-paints-a-driven-portrait.html

Lynch,Michael, “Elon Musk May Be Applying The Wrong Lessons To Tesla,”Forbes.Last


Oremus,Will, Why Elon Musk Keeps Promising the Impossible. Slate,Last modified 2016.


TeslaMotors.Last modified 2016/11/10. https://www.tesla.com/videos

Thomson,Cadie, “The 3 Biggest Ways Self-Driving Cars Will Improve ourLives.” Business


TresifTeam. Here`s How Tesla Plans To Meet Its Model 3 Production Demand.Forbes.Last


Vlasc,Bill, “Tesla Will Make Its Cars Fully Self-Driving, but Not Turnthe System on Yet” New

YorkTimes,Last modified 2016/10/20.http://www.nytimes.com/2016/10/20/business/tesla-autonomous-autopilot-vehicles.html?_r=0

1 Will Oremus. Why Elon Musk Keeps Promising the Impossible. http://www.slate.com/articles/technology/technology/2016/05/tesla_s_elon_musk_keeps_promising_the_impossible_i_think_i_know_why.html

2 ibid

3 Tesla Motors. Last modified 2016/11/10. https://www.tesla.com/videos

4 Cadie Thomson. “The 3 Biggest Ways Self-Driving Cars Will Improve our Lives.” Business Insider. 2016, http://www.businessinsider.com/advantages-of-driverless-cars-2016-6/#roads-will-be-safer-1-1

5 Dwight Garner, ‘Elon Musk,’ a Biography by Ashlee Vance, Paints a Driven Portrait. New York Times. Last modified 2015/05/20. http://www.nytimes.com/2015/05/13/books/elon-musk-a-biography-by-ashlee-vance-paints-a-driven-portrait.html

6 Tesla Motors.

7 Tesla Motors.

8 Dwight Garner,