Archive | February 2014

Much Ado About Tesla

tesla

Tesla Motors has become the most unique major United States auto manufacturing company, and the first to go public since Ford in 1956. Tesla strictly sells zero emission vehicles with the high performance quality of German brands, better safety ratings than Volvo, and contain the newest technologies on the market. These superior qualities and innovative strengths, coupled with the leadership of CEO Elon Musk, drive Tesla’s success in the market.

The company’s mission is to accelerate the advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible. As a young company with very high start-ups costs, Tesla has surpassed expectations to become self-sufficient and is not requiring government funds to function as they get closer to becoming profitable. Tesla is very close to holding a competitive advantage in auto sales and currently possesses strong distinctive competencies. The vehicles are highly desired for their high quality and performance capabilities, are distinctive because of technological resources, and are defendable because of proprietary technologies and brand reputation.

Despite their strengths, Tesla does possess certain weaknesses and threats that has hindered overall performance. Difficulties meeting demand have occurred because of limited production and manufacturing capabilities, and consequently economies of scale are not fully realizable. In addition, building and operating Tesla retail stores has been a financial burden. External threats from competitors are increasing as the demand for electric vehicles grows. The green energy trend has gained momentum over the past few years. While opportunities for future growth exist in untapped foreign markets, Tesla needs to prioritize growth in U.S. markets until domestic demand is met. Tesla’s goal to secure stable production Goals to secure highly stable production in addition to launching a new vehicle model by 2015 will improve Tesla’s deliverability while strengthening their differentiation strategy.

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