Elon Musk Case Analysis

720 Words3 Pages
Elon Musk is not only CEO of Tesla but he also CEO of Solarcity, and SpaceX which will divide his time and energy to make Tesla grow faster. Elon concentration on the environmental and society over the profitability will harmer Tesla survive if other competitors build the same performance EVs and sell with cheaper price. Elon policy to open the patents for everyone to use with will be a biggest threat to Tesla and her long term survive because the competitors can use the same technology to build and produce the EVs car without spend money on R&D. Elon reputation as a very hard working person and try to push his people to be the same passion of work as him with can lead to a lot of change over. For the generation millennium, they are value…show more content…
Increase productivities and revenues - The major constraint with Tesla is supply car to the customer at the timely manner. Elon Musk said “we really are production constrain, not demand constraint” (2012). Because Tesla business modern to target the rich and affluent people with willing to pay more for electric car compare to other cars in the early year of development, so they will not have issues to pay the money if the cars are available. At the end of 2013, the customer have to put down payment of $5000 and have to wait for average 6 months to 1 year to get the vehicle deliver which is too slow. The waiting time cost Tesla revenue, which can used to make more cars or invest in R&D to make the battery cheaper, and more efficient. Since Tesla start build car in 2003, it does not have infrastructure to max produce cars like other car companies, Tesla must try to expanse infrastructure and short manufacturing time so more cars can be produce to provide to the market. It is very hard for young company to ramp up production and maintain high product quality and keep improve and develop product at the same time. At the end of 2013, Tesla only have only one manufactory in USA to build EVs so it not very efficient to supply the globe demand. Tesla need to find way to build more production plants in Europe and Asia fast so it can supply the local demand. Tesla continues to improve the manufactory process to reduce the hours required to build car by 40% in year 2013 (model S) in increase until production by 80% in Q1 2013 (Rothaermel 2013). The percent reduction can be decrease to 80% or 100% next few years if the improvement continues. The main factor to keep Tesla from increase EVs production is lithium-ion battery production. There are only few manufactories in the world make the lithium ion battery in the world (2013) and most of them locate in Asia so Tesla need to partner with them to product more lithium-ion battery. In 2013, Tesla sold over

More about Elon Musk Case Analysis

Open Document