This is largely due to the significant investments it has made in research and development for the transformative technology in its cars. It is also the result of the rapid expansion the company has experienced in just a handful of years. The cutting-edge auto maker posted revenues of just over $200 million in 2011, while reporting sales of over $4 billion last year. Tesla is also investing heavily for the construction of its Gigafactory in Nevada, which has already begun producing battery packs and will likely manufacture lithium cell batteries by year’s end. Because of these large cash outlays, Tesla has reported negative free cash flows and earnings for nearly every year since its IPO.
Can tesla rapidly develop in Chinese market? Zhizhen Wang No.800, Dongchuan RD, F1103006, Shanghai Jiao Tong University Professor William May 29, 2015 Abstract Tesla Motors, Inc. is an American automotive and energy Storage Company that designs, manufactures, and sells electric cars, electric vehicle powertrain components and battery products. Tesla Motors is a public company that trades on the NASDAQ stock exchange under the symbol TSLA. In the first quarter of 2013, Tesla posted profits for the first time in its history. Can tesla rapidly develop in Chinese market?
If GEM’s customers articulate the same statements as they have mentioned above for Tesla’s customers, it would be as “Help me to get a vehicle which would be more comfortable and safe than a golf cart and more maneuverable, cost-efficient and sustainable than a van or truck”. Within the theory of jobs to be done, there is a pyramid which has four categories : 1. Job to be done: Articulating the job to be done 2. Experiences: Defining the experiences that the customer needs to have to nail the job perfectly 3. Integration: Determining how to integrate the organization to deliver the job to be done 4.
This uncertainty will lead to consumers spending decrease, reduce investor confidence enter to the market and so on. Although Tesla posted profits for the first time since the first quarter of 2013, it remains to face the challenges of finance in the future. Such as raising cash to fund construction of battery factory to scale up the company’s network of charging stations and the movement of Tesla’s stock price. As a leader in emerging technology industry, high expense of its operation, marketing, research and development occupy 40% of the total revenue. Tesla uses the online sales model coupled with company-owned stores to sell its cars that is the big challenge of capital for a company in setting up its own distribution
Tesla Motors, Inc. addresses stakeholders’ interests through a company social responsibility strategy that focuses on property and environmental friendliness of automotive products. Such company responsibility efforts profit stakeholders, whereas additionally boosting the company’s corporate and whole image. Investing in socially accountable stocks could be a fashionable strategy these days that aims to search out firms with a balance between solid money returns and social smart. Tesla Motors fits this description, it's laborious to beat Tesla once it involves investment in socially accountable firms. The California-based automotive company manufactures and sells nearly zero-emissions cars, that cause less hurt to the surroundings than gas-powered vehicles, thereby creating it a "socially responsible" company.
Transportation: Since Tesla produces and assembles the automobiles in one giant factory located in Fremont, California , thus the transportation budget is set really high. On land, Tesla uses mainly large trailer trucks and railways to transport its vehicles in and around United states to transports its vehicles, whereas using ships to transport its vehicles to its showrooms spread across four continents Transportation costs are huge in the organization's business and in this manner, the market cost of fuel assumes a noteworthy part because of its unpredictable nature. This changes in cost are by and large managed the way toward supporting which allow them at locking fuel costs Pricing Tesla has this unique system of ordering wherein they have eliminated the need for dealerships and maintaining an inventory , as the cars a made to order via website and shipped to the nearest showroom of the
4.Describe the major trends and forces that are changing the automobile marketing landscape and how Tesla is taking advantage and/or trendsetting in the automobile industry. Safety Becomes More Important: Safety plays a major role in the automobile industry with vehicle manufacturers constantly making improvements to avoid and lessen damage from collision. Automobile industry is also trying to improve braking systems, stability and lighting. They are also concentrating on environmental safety. Tesla is manufacturing environmental friendly car also takes care of safety by using air bags, antilock brakes, and seat belt pretensions.
3. THE NEED OF INNOVATIONS IN TRANSPORTATION. Before analyzing what Tesla Motors Inc. can bring to the world we need to answer the question “Is it a real need for the electric vehicles and innovations in the automotive industry?” There are some arguments for: Air Pollution. According to The Organization for Economic Co-operation and Development (OECD) report, the air pollution is a big issue especially for urban cities. It directly affects people health and a quality of people’s lives.
These batteries afford Tesla Model S achieve the volume of energy reserve for more than 480km. Despite the fact that Tesla Motors manufactures and sells its own electric cars, it acts as simple equipment manufacturer by the production of electric powertrain components, which other companies can buy and trade with their own brand names. For motivating the growth, Tesla Motors worked out three main strategic partnership types: • Equipment manufacturer partnership with other car makers • Supplier partnership • R&D partnership. To cover the growth task Tesla Motors used the external collaboration for enhancing the Tesla innovation and set up partnerships with many firms. The members of its supplier union were Lotus Cars and Panasonic.
Financial Analysis The current financial situation of Tesla Motors is sketchy. Its capital related quality comes solely from its stock offerings. As of December 31, 2014, the number of ordinary stock of 123,090,990, which was quite remarkable, has brought about paid in capital of $1,806,617 for the organization. In June of 2014, the organization issued an open offering of 3.7 million shares of stock at $92.00 per offer, and around the same time the organization had a private situation of 595,272 shares at $92.20 per offer, there were 3.8 million shares activity, and 516,743 shares issued to employee stock purchase arrangement. The organization as of now does not have any outstanding preferred stock.