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In: Economics

Write the following information about Automative industry Tesla: History of the Organization/Company. Organizational Philosophy Describes of...

Write the following information about Automative industry Tesla:

  • History of the Organization/Company.
  • Organizational Philosophy
  • Describes of facilities, programs, products and services available
  • Overall strategic objectives/goals of the business

Solutions

Expert Solution

History of the organization/company

  • Founded in 2003 by Elon Musk, Martin Eberhard, and Marc Tarpenning
  • March 2008- Tesla begins production of Roadster. Eventually sells 2,150 of Roadsters.
  • June 2008- Announce Model S
  • Jan 2010- Tesla registers for an IPO
  • May 2010 - Tesla buys former GM factory in Fremont, CA and Toyota signs deal to cooperate in EV development

Organizational Philosophy

  1. Tesla must address its production capacity and corporate leadership issues.
  2. Strategic recommendations include a new JV and revised coporate structure
  3. Ultimately lead to improvements in Tesla's performance and strategic direction

Describes of facilities, programs, products and services available

Facilities and programs

  • Talented designers
  • Unlike combustible engines,electric engines have less moving parts and are much cleaner to work with.
  • Large production capacity, only 20% of Tesla motors factory is used to produce Model S
  • Leverage Boeing's suppliers, distribution network, production facilities and TQM systems
  • Maintain centralization in California, but can move production to other areas of the country
  • Can use Boeing's large capital structure to purchase a production facility and the necessary equipment to start producing vehicles outside of California.
  • Tesla start is an intensive training program designed to provide students across North America with the skills necessary for a successful carrer with Tesla at the forefront of the electric vechicle revolution.

Products and services

Tesla motor manufactures and sells not only electric cars but also electric vehicle powertrain components, such as Lithium-ion battery packs. The Tesla Roadster is the first highway- capable and all-electric sports vehicle produced by Tesla in 2008. "This high performance BEV, with a range of up to 250 miles, uses a proprietary lithium - ion polymer battery pack that stores as much as twice the energy" ( Mangram, 2012). Furthermore, it is " capable of acceleration from zero to 60 mph in less than four seconds,with a self limited top spped of 125mph" ( mangram 2012). Tesla's model S sedan targets mid level customers, with a lower price around $57,000 compared to the Roadster. " Tesla's longer term product objectives include the development of a $30,000 sedan by 2015 ( codename 'Blue star", as well as a crossover/SUV -type vehicle (code name'model X'." Tesla is expected to deliver Model X by the end of 2014.

Strategic objectives/goals

Develop a high end, high performance sports car to prove that electric vehicles are both stylish and efficient. Use the sports car to develop core intellectual property and patents

Introduce a premium sedan that competes with brands like BMW, mercedes and Audi

produce hundreds of thousands of low cost premium electric vehicles for mass adoption


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