Running head: TESLA MOTORS 1 TESLA MOTORS 3 Tesla Motors 1. Current Situation Tesla Motors is a company that was founded in 2003 and is headquartered at Palo Alo in California. The company came up with an idea of creating an electric car with an attempt to outdo the performance of gasoline vehicles (Mangram, 2012). The owners of the company, Marc Tarpenning and Martin Eberhand, were inspired to come up with their company by a genius electric engineer, Nikola Tesla, came up with the current alternating current. Nicola Tesla also came up with a sports car that was run in an AC induction motor. Elon Musk, the major investor of Tesla Motors was a risk taker, interested in coming up with a vehicle that was a hundred percent electric, without having to compromise in any aspects of the car. The first electric sedan launched by Tesla Motors referred to as the Model S was released in 2012. This car attained a safety rating of 5-stars because it was the car of the year in 2013. In a bid to increase performance, Tesla released another version of Model S, which has a dual motor. Additionally, the company also released Model X, which has better aspects than the two versions of Model S. Over time, the company has expanded its operation, and currently manufactures the electric cars in California, and Fremont, with expansion efforts in Lathrop and California. As of the year 2016, the company has had a net revenue amounting $1,147,048. This amount was an increase in the company’s revenues from the previous year, which was at $939,880. The continuous increase in the company’s revenue has come about because of the reduction in costs by an average of $100,000. Tesla’s shares range at $220 per share, which is an increase from the previous levels whereby the shares had decreased to around $147. The improvement in the company’s revenue and shares is a result of the efforts in product development strategies. From the start of the company, the company has put over $900 million in the research and development activities aimed at improving the performance of its cars. Strategy The strategic alignment of Tesla Motors includes manufacturing a high-end vehicle, whose target consumers includes the wealthy individuals in the society. Moreover, the company has concentrated on providing its consumers with a highly priced vehicle, which has made it possible for the enlargement of its customer base. Due to this aspect, the company has managed to expand its operations, taking into consideration the development of a cheaper car that could be sold to the people of the lower social classes. The company is building a network of up to 120kw fast supercharger equipment. It can replenish 170 miles of range in the battery pack in 30 mins. 2. Challenges and Major Problems Tesla Motors has been faced by several issues over the years. One of the challenges that the company has experienced has been issues in the battery charging and pack fires. In 2013, three fire accidents were ...

1. Running head: TESLA MOTORS 1
TESLA MOTORS 3
Tesla Motors
1. Current Situation
Tesla Motors is a company that was founded in 2003 and is
headquartered at Palo Alo in California. The company came up
with an idea of creating an electric car with an attempt to outdo
the performance of gasoline vehicles (Mangram, 2012). The
owners of the company, Marc Tarpenning and Martin Eberhand,
were inspired to come up with their company by a genius
electric engineer, Nikola Tesla, came up with the current
alternating current. Nicola Tesla also came up with a sports car
that was run in an AC induction motor. Elon Musk, the major
investor of Tesla Motors was a risk taker, interested in coming
up with a vehicle that was a hundred percent electric, without
having to compromise in any aspects of the car.
The first electric sedan launched by Tesla Motors referred to as
the Model S was released in 2012. This car attained a safety
rating of 5-stars because it was the car of the year in 2013. In a
bid to increase performance, Tesla released another version of
Model S, which has a dual motor. Additionally, the company
also released Model X, which has better aspects than the two
versions of Model S. Over time, the company has expanded its
operation, and currently manufactures the electric cars in
California, and Fremont, with expansion efforts in Lathrop and
California.
As of the year 2016, the company has had a net revenue
amounting $1,147,048. This amount was an increase in the
company’s revenues from the previous year, which was at
$939,880. The continuous increase in the company’s revenue
has come about because of the reduction in costs by an average
of $100,000. Tesla’s shares range at $220 per share, which is

2. an increase from the previous levels whereby the shares had
decreased to around $147. The improvement in the company’s
revenue and shares is a result of the efforts in product
development strategies. From the start of the company, the
company has put over $900 million in the research and
development activities aimed at improving the performance of
its cars.
Strategy
The strategic alignment of Tesla Motors includes manufacturing
a high-end vehicle, whose target consumers includes the
wealthy individuals in the society. Moreover, the company has
concentrated on providing its consumers with a highly priced
vehicle, which has made it possible for the enlargement of its
customer base. Due to this aspect, the company has managed to
expand its operations, taking into consideration the
development of a cheaper car that could be sold to the people of
the lower social classes.
The company is building a network of up to 120kw fast
supercharger equipment. It can replenish 170 miles of range in
the battery pack in 30 mins.
2. Challenges and Major Problems
Tesla Motors has been faced by several issues over the years.
One of the challenges that the company has experienced has
been issues in the battery charging and pack fires. In 2013,
three fire accidents were reported in a span of five weeks.
Although these incidents were reported, the only good thing is
that no serious accidents or even deaths were reported.
The worst of these cases was the situation in which a fire
occurred in the residential garage of one of the customers of the
customers of the company. The customer had purchased the
Model S car and the fire happened in the process of charging
the battery. The cause of the fire was the faulty wall socket,
coupled up with charging cables that do not cut off electricity
once a problem is detected.
The major problem that arose from this situation was the
manner in which Tesla Motors handled the situation. Its CEO

3. Elon Musk made no efforts to apologize to the garage owner, as
well as the public for the fire incidents occurring from the
electric vehicles. Moreover, the company shifted the blame to
the media and claimed that it was tarnishing the company’s
name. This aspect led to the consumer’s lack of trust and
confidence in Tesla Motors and its electric cars. The people
believed that the company had no sympathy for the victims
since it did not accept responsibility for what had happened.
Another challenge faced was the concerns raised by the public
concerning the type of batteries that the company was using to
power its cars, as well as materials used in the manufacture of
these batteries. The situation was further made worse by the
media coverage of the fire incidents on the local and
international arena. This issue led to a drop in the company’s
stock prices to around 20% since the people were no longer
confident that Tesla’s vehicles were safe for them.
Tesla Motors also faced challenges in its application of
innovative technology. The company has in the past invested its
resources in the carrying out of research that was used to
develop the various models of electric cars. However, the
company failed to apply its research capabilities when
developing the Model S cars, and thus did not come up with
innovative batteries with no risk of fires. Tesla Motors did not
consider the fact that its innovative technology could be applied
to also make upgrades on its cables, thus ensuring that fires do
not emerge.
Another of the challenges was the range anxiety faced by the
drivers of the Tesla’s electric cars. The drivers are always
afraid that their vehicles will run out of charge before they
reach their destinations. Consumers are afraid of purchasing the
vehicles because the charging stations are far apart, making it
inconvenient.
3. Tesla’s Corporate Objectives and Mission
Mission Statement
Initially, the company’s mission statement was “to accelerate
the world’s transition to sustainable transport” (Mangram,

4. 2012). However, as of 2016, Tesla Motor’s mission statement
was changed and stated as “to accelerate the world’s transition
to sustainable energy” (Mangram, 2012). This mission statement
shows the shift of the company’s business strategies with an
aim of capitalizing on the existing market opportunities in the
renewable energy. Several features of this mission represent the
changes in the company. These features include:
· Sustainable energy
· Acceleration
· The transitioning of the world
Acceleration, in Tesla’s case refers to the efforts by the
company to push the automotive industry towards embracing the
use of renewable sources of energy to conserve the
environment. It also refers to the effort of increasing business
sustainability through the renewable sources of energy. The
transition of the world indicated in the mission statement refers
to the attempts of the company to ensure that the society
embraces the use of electric cars. It also represents a shift from
the use of petroleum-powered cars to those using electricity.
Lastly, the sustainable energy aspect of the mission puts into
consideration the business strategies used by Tesla Motors to
achieve the use of sustainable energy all over the world.
Corporate Objectives of Tesla Motors
Tesla Motors’ corporate objectives are based on its goals of
ensuring the Transition of the world to the use of the
sustainable sources of energy. Additionally, it is also focused
on ensuring that the revenues of the company are increased. For
this reason, its corporate goals are divided into three categories.
These categories include
· Primary objectives
· Secondary objectives
· Overarching objectives
1. The primary objectives of Tesla motors in include driving
the dales of its cars up through the generation of demand. It
also aims at increasing awareness concerning the Tesla brand,
and increasing its customer base, thus creating brand loyalty.

5. 2. The secondary objectives include ensuring that the market
share of the company continues to increase and to ensure that
the word understands its goals of sustainable energy.
3. Lastly, there are the overarching objectives, which including
empowering the society, inspiring others, and educating the
world on renewable energy.
4. Tesla’s Competitors
The electric vehicle segment of the automotive industry in the
international market has had several companies operating in it.
As of 2013, the production of passage cars amounted to around
65 million. Out of these vehicles, only 1% of these were electric
vehicles. These vehicles were manufactured by a number of
players in this industry alongside Tesla Motors. The other
companies manufacturing the plug-in electric vehicles are the
competitors of Tesla Motors. These companies include
· Chevrolet
· Nissan
· Toyota
· Ford
· Mitsubishi
· Honda
· Volkswagen
Among Tesla’s competitors. Toyota has been the most
competitive. As of 2013. Toyota Motor Corp was names as the
global leader in the manufacture and sale of the plug-in electric
cars, as well as the hybrids. By 2013, Toyota had manufacture 6
million units of the plugins (Mangram, 2012).
Another company that has proved to be too competitive is
Volkswagen. The company has been researching into the
manufacture of the electric cars while keeping its production
costs lows. In 2013, the company explained that it made efforts
to ensure that it became a market leader in the manufacture of
electric cars in the global market.

6. 5. Recommendation
Improving the Competitive Position
Advertising
Tesla motors should improve its competitive position by
increasing its advertisement all across the globe. One advantage
of advertising is that it increases the knowledge of people about
the company and the products offered thereby increasing the
reputation of the company. Increased advertising means
informing the people about the operations of the firm therefore
making the people interested in purchasing the vehicle.
Advertising is actually the primary tool that businesses use to
create and maintain a competitive position in the market. It is
by appealing to people to make purchases that a company get
more customers than the competitors and thus a competitive
position. Moreover, to remain relevant and always on the minds
of potential customers, the company needs to advertise its
products and services in the market.
Positioning
Positioning entails building the reputation of the firm
among the consumers to ensure that the products is perceived
positively among the people and that it can be easily
remembered by people. A better position in the market provides
a firm with a competitive position better than its competitors
since people will always think about the product of the firm in
preference to the competitors. In positioning the company
should conducts campaigns that involve competitions that will
lead to an individual winning a free or subsidized tesla car of a
given model. Such a competition may entail the customers
sending the tesla models they know of after which a draw for a
lucky winner will be conducted. The approach would place the
company at a better position in the market which will result to
increased competitive advantage for the firm.
The company should also sponsor some common events in
the society such as football, athletics, and other forms of sport
that are watched globally or in the specific target market.
Participating in such events will put the firm into the lime light

7. and attract a wider market which comes with a better
competitive position. The move will also endear the company to
the public and thus attract more customers improving the
Tesla’s competitive position.
Improving the Financial Condition
Tesla should consider issuing unsecured notes to the
renowned organization generate more funds for the firm. Al the
notes are risky, they would offer the firm more returns to help
in adding to its financial pool to use in developing the firm
further. The approach would mean more earning for the firm
which would be used to support the expansion of the firm.
Moreover, the firm should invest in advertising to raise the
revenues of the firm and thus add to the earning of the
company. In 2014, the revenues and earnings of the first quarter
declined from the previous quarter impacting negatively on its
financial condition. This should be changed to improve its
financial condition and performance.
References
Mangram, ME 2012, 'The globalization of Tesla Motors: a
strategic marketing plan analysis', Journal Of Strategic
Marketing, 20, 4, pp. 289-312
Running head: TESLA MOTORS 1
TESLA MOTORS 3
Tesla Motors
1. Current Situation
Tesla Motors is a company that was founded in 2003 and is
headquartered at Palo Alo in California. The company came up
with an idea of creating an electric car with an attempt to outdo
the performance of gasoline vehicles (Mangram, 2012). The
owners of the company, Marc Tarpenning and Martin Eberhand,
were inspired to come up with their company by a genius

8. electric engineer, Nikola Tesla, came up with the current
alternating current. Nicola Tesla also came up with a sports car
that was run in an AC induction motor. Elon Musk, the major
investor of Tesla Motors was a risk taker, interested in coming
up with a vehicle that was a hundred percent electric, without
having to compromise in any aspects of the car.
The first electric sedan launched by Tesla Motors referred to as
the Model S was released in 2012. This car attained a safety
rating of 5-stars because it was the car of the year in 2013. In a
bid to increase performance, Tesla released another version of
Model S, which has a dual motor. Additionally, the company
also released Model X, which has better aspects than the two
versions of Model S. Over time, the company has expanded its
operation, and currently manufactures the electric cars in
California, and Fremont, with expansion efforts in Lathrop and
California.
As of the year 2016, the company has had a net revenue
amounting $1,147,048. This amount was an increase in the
company’s revenues from the previous year, which was at
$939,880. The continuous increase in the company’s revenue
has come about because of the reduction in costs by an average
of $100,000. Tesla’s shares range at $220 per share, which is
an increase from the previous levels whereby the shares had
decreased to around $147. The improvement in the company’s
revenue and shares is a result of the efforts in product
development strategies. From the start of the company, the
company has put over $900 million in the research and
development activities aimed at improving the performance of
its cars.
Strategy
The strategic alignment of Tesla Motors includes manufacturing
a high-end vehicle, whose target consumers includes the
wealthy individuals in the society. Moreover, the company has
concentrated on providing its consumers with a highly priced
vehicle, which has made it possible for the enlargement of its
customer base. Due to this aspect, the company has managed to

9. expand its operations, taking into consideration the
development of a cheaper car that could be sold to the people of
the lower social classes.
The company is building a network of up to 120kw fast
supercharger equipment. It can replenish 170 miles of range in
the battery pack in 30 mins.
2. Challenges and Major Problems
Tesla Motors has been faced by several issues over the years.
One of the challenges that the company has experienced has
been issues in the battery charging and pack fires. In 2013,
three fire accidents were reported in a span of five weeks.
Although these incidents were reported, the only good thing is
that no serious accidents or even deaths were reported.
The worst of these cases was the situation in which a fire
occurred in the residential garage of one of the customers of the
customers of the company. The customer had purchased the
Model S car and the fire happened in the process of charging
the battery. The cause of the fire was the faulty wall socket,
coupled up with charging cables that do not cut off electricity
once a problem is detected.
The major problem that arose from this situation was the
manner in which Tesla Motors handled the situation. Its CEO
Elon Musk made no efforts to apologize to the garage owner, as
well as the public for the fire incidents occurring from the
electric vehicles. Moreover, the company shifted the blame to
the media and claimed that it was tarnishing the company’s
name. This aspect led to the consumer’s lack of trust and
confidence in Tesla Motors and its electric cars. The people
believed that the company had no sympathy for the victims
since it did not accept responsibility for what had happened.
Another challenge faced was the concerns raised by the public
concerning the type of batteries that the company was using to
power its cars, as well as materials used in the manufacture of
these batteries. The situation was further made worse by the
media coverage of the fire incidents on the local and
international arena. This issue led to a drop in the company’s

10. stock prices to around 20% since the people were no longer
confident that Tesla’s vehicles were safe for them.
Tesla Motors also faced challenges in its application of
innovative technology. The company has in the past invested its
resources in the carrying out of research that was used to
develop the various models of electric cars. However, the
company failed to apply its research capabilities when
developing the Model S cars, and thus did not come up with
innovative batteries with no risk of fires. Tesla Motors did not
consider the fact that its innovative technology could be applied
to also make upgrades on its cables, thus ensuring that fires do
not emerge.
Another of the challenges was the range anxiety faced by the
drivers of the Tesla’s electric cars. The drivers are always
afraid that their vehicles will run out of charge before they
reach their destinations. Consumers are afraid of purchasing the
vehicles because the charging stations are far apart, making it
inconvenient.
3. Tesla’s Corporate Objectives and Mission
Mission Statement
Initially, the company’s mission statement was “to accelerate
the world’s transition to sustainable transport” (Mangram,
2012). However, as of 2016, Tesla Motor’s mission statement
was changed and stated as “to accelerate the world’s transition
to sustainable energy” (Mangram, 2012). This mission statement
shows the shift of the company’s business strategies with an
aim of capitalizing on the existing market opportunities in the
renewable energy. Several features of this mission represent the
changes in the company. These features include:
· Sustainable energy
· Acceleration
· The transitioning of the world
Acceleration, in Tesla’s case refers to the efforts by the
company to push the automotive industry towards embracing the
use of renewable sources of energy to conserve the
environment. It also refers to the effort of increasing business

11. sustainability through the renewable sources of energy. The
transition of the world indicated in the mission statement refers
to the attempts of the company to ensure that the society
embraces the use of electric cars. It also represents a shift from
the use of petroleum-powered cars to those using electricity.
Lastly, the sustainable energy aspect of the mission puts into
consideration the business strategies used by Tesla Motors to
achieve the use of sustainable energy all over the world.
Corporate Objectives of Tesla Motors
Tesla Motors’ corporate objectives are based on its goals of
ensuring the Transition of the world to the use of the
sustainable sources of energy. Additionally, it is also focused
on ensuring that the revenues of the company are increased. For
this reason, its corporate goals are divided into three categories.
These categories include
· Primary objectives
· Secondary objectives
· Overarching objectives
1. The primary objectives of Tesla motors in include driving
the dales of its cars up through the generation of demand. It
also aims at increasing awareness concerning the Tesla brand,
and increasing its customer base, thus creating brand loyalty.
2. The secondary objectives include ensuring that the market
share of the company continues to increase and to ensure that
the word understands its goals of sustainable energy.
3. Lastly, there are the overarching objectives, which including
empowering the society, inspiring others, and educating the
world on renewable energy.
4. Tesla’s Competitors
The electric vehicle segment of the automotive industry in the
international market has had several companies operating in it.
As of 2013, the production of passage cars amounted to around
65 million. Out of these vehicles, only 1% of these were electric

12. vehicles. These vehicles were manufactured by a number of
players in this industry alongside Tesla Motors. The other
companies manufacturing the plug-in electric vehicles are the
competitors of Tesla Motors. These companies include
· Chevrolet
· Nissan
· Toyota
· Ford
· Mitsubishi
· Honda
· Volkswagen
Among Tesla’s competitors. Toyota has been the most
competitive. As of 2013. Toyota Motor Corp was names as the
global leader in the manufacture and sale of the plug-in electric
cars, as well as the hybrids. By 2013, Toyota had manufacture 6
million units of the plugins (Mangram, 2012).
Another company that has proved to be too competitive is
Volkswagen. The company has been researching into the
manufacture of the electric cars while keeping its production
costs lows. In 2013, the company explained that it made efforts
to ensure that it became a market leader in the manufacture of
electric cars in the global market.
5. Recommendation
Improving the Competitive Position
Advertising
Tesla motors should improve its competitive position by
increasing its advertisement all across the globe. One advantage
of advertising is that it increases the knowledge of people about
the company and the products offered thereby increasing the
reputation of the company. Increased advertising means
informing the people about the operations of the firm therefore
making the people interested in purchasing the vehicle.
Advertising is actually the primary tool that businesses use to
create and maintain a competitive position in the market. It is
by appealing to people to make purchases that a company get
more customers than the competitors and thus a competitive

13. position. Moreover, to remain relevant and always on the minds
of potential customers, the company needs to advertise its
products and services in the market.
Positioning
Positioning entails building the reputation of the firm
among the consumers to ensure that the products is perceived
positively among the people and that it can be easily
remembered by people. A better position in the market provides
a firm with a competitive position better than its competitors
since people will always think about the product of the firm in
preference to the competitors. In positioning the company
should conducts campaigns that involve competitions that will
lead to an individual winning a free or subsidized tesla car of a
given model. Such a competition may entail the customers
sending the tesla models they know of after which a draw for a
lucky winner will be conducted. The approach would place the
company at a better position in the market which will result to
increased competitive advantage for the firm.
The company should also sponsor some common events in
the society such as football, athletics, and other forms of sport
that are watched globally or in the specific target market.
Participating in such events will put the firm into the lime light
and attract a wider market which comes with a better
competitive position. The move will also endear the company to
the public and thus attract more customers improving the
Tesla’s competitive position.
Improving the Financial Condition
Tesla should consider issuing unsecured notes to the
renowned organization generate more funds for the firm. Al the
notes are risky, they would offer the firm more returns to help
in adding to its financial pool to use in developing the firm
further. The approach would mean more earning for the firm
which would be used to support the expansion of the firm.
Moreover, the firm should invest in advertising to raise the
revenues of the firm and thus add to the earning of the
company. In 2014, the revenues and earnings of the first quarter

14. declined from the previous quarter impacting negatively on its
financial condition. This should be changed to improve its
financial condition and performance.
References
Mangram, ME 2012, 'The globalization of Tesla Motors: a
strategic marketing plan analysis', Journal Of Strategic
Marketing, 20, 4, pp. 289-312