Because of these large cash outlays, Tesla has reported negative free cash flows and earnings for nearly every year since its IPO. As a result, Tesla has been forced to raise more debt and sell more shares. High Debt Load: The company has a relatively high debt load. As of March 31, 2016, Tesla had nearly $2.5 billion of long-term debt and capital leases on its balance sheet, or roughly 72% of total capital. This compares to only $1.4 billion of cash on hand.
Tesla is a company that has turned into the main edge organization due its advancement thoughts and great leadership administration in auto manufacturing production. Tesla has understood the significance of renewable vitality and ecological assurance, as well as how they can tackle these issues with quickly improvement of high advancements (Eberhard, & Tarpenning, 2006). In this way, Tesla has transformed the car business and gave the commendable distinct option for gas vehicles. Tesla Motors have more assortment and in addition inconceivable changes of autos and they are fuel effective with high performance and naturally cordial (Hoya, & Guha, 2009). Discussion Tesla is situated in a sub-business sector fragment that needs impressive contenders
Company background Tesla Motors Company was established by Martin Eberhard and Marc Tarpenning in California 's Silicon Valley area in 2003. It is a company specialize in automotive and energy Storage technology that involves designs, manufactures, and sells luxury electric cars, electric vehicle powertrain components and battery products. The company believes that electric cars could be better than gasoline-powered cars and it will be the future trend of car market. Tesla committed to developing diversity model to suit different type of user requirement and each new generation of the car would be increasingly affordable.
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.
The vision of Tesla is ‘to create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles’. Based on the mission and vision, the company’s strategy was determined. Tesla’s strategy is to enter at the high end of the market, where customers are prepared to pay a premium, and then drive down market as fast as possible to higher unit volume and lower prices with each successive model. (Musk,
 Competitor Analysis Tesla Motor is simply the leader in the product range of Electric Vehicle. It has placed itself in the market after a thorough working over the technology. Now after getting established in market it has created following barriers for its competitors. a) A technology for good quality of Lithium ion Cell batteries at
These barriers are divided into internal and external factors. These barriers can affect Tesla marketing planning. Internal Factor 1. Behavioral Barriers The behavioral characteristics of the workforce can greatly influence the marketing plan. If Tesla goes into other countries ' markets, its marketing team may be conservative.
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. Tesla's chief Elon Musk, started the energy unit maker with one goal in mind to assist finish the world's dependence on oil. Moreover, Musk says the "overarching purpose" of Tesla Motors is "to facilitate expedite the move from a mine-and-burn organic compound economy toward a star electrical economy, that he feel to be the first, however not exclusive. That's beyond any doubt a noble and socially
(panmore.com, Tesla Motors, Inc. PESTEL/PESTLE Analysis & Recommendations) Electric vehicles face two main technological challenges, high costs and suboptimal batteries, this is where Tesla has taken the lead on its competitors, their batteries are cheaper, charge faster and have a better range than those of the competition (200+ miles, up to a maximum of 300 miles), the infrastructure for charging these vehicles is also rapidly developing. (technologyreview.com, How Tesla Is Driving Electric Car Innovation) The major innovation that is coming is fully autonomous vehicles, Tesla, Inc. has stated that all their vehicles are fully equipped with the software required and that total autonomy will start to
In recent years, the automotive industry has seen a dichotomy of innovations – particularly in relation to electric vehicles. For example, Tesla and GEM have each introduced new and distinct electric vehicles aimed at different “jobs to be done.” Tesla Motors (“Tesla”) is an American electric-automobile manufacturer. It was founded in 2003 by American entrepreneurs Martin Eberhard and Marc Tarpenning and was named after Serbian American inventor Nikola Tesla. Tesla was formed to develop an electric sports car. Funding for the company was obtained from a variety of sources, most notably PayPal co-founder Elon Musk, who contributed more than $30 million to the new venture and served as chairman of the company, beginning in 2004.