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Analysis On Tesla Motors

4973 words - 20 pages

Tesla Motors, Inc.
8 Step Case Analysis Method

Khushboo E Jahan
Marissa Shotwell-Tabke
Guojun Zhang

GBA 517
Dr. Kevin Moncrief
Fall 2015

Table of Contents
Introduction pg. 1
Company Background pg. 1
Products pg. 2
Business Mission pg. 3
Marketing Objectives pg. 4
Strategic Issues pg. 5
Promotion pg. 5
Pricing pg. 6
External Environment pg. 6
Distribution pg. 10
Constraints pg. 12
Firm Specific pg. 12
Limited Product List pg. 12
Limited Manufacturing capacity pg. 13
Distribution & Service Network pg. 13
Limited Exposure in Foreign Market pg. ...view middle of the document...

24
Table – Fiat Chrysler Group’s Advertising Expenditure pg. 24

Introduction
Company Background
Tesla Motors was incorporated in July 2003 by Martin Eberhard and Marc Tarpenning. Both men played active roles in the company’s early development. With Series A round of investment in February 2004, Elon Musk joined the company as Chairman and CEO. Tesla Motors set out fulfill three goals at its founding: Develop a high- performance sports car that dazzled the imagination and prove that electric vehicles were at least as viable and whole lot better than hybrids that were already being produced by other companies, roll out a luxury sedan that could compete on an equal footing with such well known brands as Mercedes and BMW, and produce hundreds of thousands of electric vehicles at a price-point that would encourage the embrace of the masses. In order to accomplish their goals, Tesla started production with a premium sports car aimed at early adopters and has since been moving as rapidly as possible into more mainstream vehicles, including sedans and affordable compacts. Tesla produced its first car, the Roadster from 2008 to 2012. It has produced its second car, the Model S since 2012. Tesla is planning to release their third model, the Model X crossover in the second half of 2015.
Tesla has quickly expanded into a global company, with bases in California, the United Kingdom, the Netherlands, and China.

In 2014, Tesla Motor’s revenue and income figures were as follows:
Annual Revenue (2014): $3.198B
Annual Operating Income (2014): $186.7M
Annual Net Income (2014): $294M
As of June 2015, Tesla motors had about 12,000 employees worldwide. Their company tagline is: Burn rubber, not gasoline.

Products
Tesla launched their first car, the Tesla Roadster, in 2008. The Roadster was the first production automobile to use lithium-ion battery cells, and the first production electric vehicle with a range greater than 200 miles per charge.
In 2012, Tesla launched their second electric vehicle, the Model S. The Model S is a four door, five adult, passenger luxury sedan. The base price of the Model S ranges from $62,400 to $72,000 dependent on battery pack options. Sales of the Model S currently make up the majority of Tesla’s vehicle sales.
Tesla is continuing to develop two new models, the Model X, a crossover vehicle at a base price of $80,000, and the Model 3, a lower priced Sedan intended for the mass market. The Model X will be available to consumers in late 2015, and the Model 3 will become available in 2017.
Tesla has also developed stationary energy storage products for use in homes, commercial sites and utilities. These energy storage products use the energy management technologies and processes that were originally developed for their vehicle powertrain systems. The applications for battery systems include backup power, peak demand reduction, demand response and wholesale electric market services.
Tesla also develops,...

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