Tesla is facing a critical situation as it reported a large loss in the first quarter of 2019 due to challenges delivering its mass-market Model 3. Production problems were overcome but delivering cars to customers and booking sales has proven difficult. Additionally, the federal tax credit was diminished and vehicle demand slowed. Elon Musk stated Tesla is undertaking unprecedented challenges in developing affordable electric vehicles at scale, requiring massive investments, and should not be compared to conventional auto manufacturers. Musk also said Tesla may enter the Indian market in 2020.

1. Critical Situation in an Organization &
Managerial Solution
Register No: RA1952001020107
Subject: Managerial Skills
Course: MBA
Section: B PresentedBy
R .S. Siva Sankari

2. TESLA MOTORS
1
• Founded in July 1
2003 by
engineers in
Silicon Valley
• Electric car with
instant torque,
incredible power,
and zero emissions
• Accelerate the
world’s transition to
sustainable
transport

3. CORPORATE STRUCTURE
Elon Musk
CEO,ProductArchitect & Board of Director
Shareholders
Board of Directors
President& Board of Director
(NewPosition– Managerial Leader)
D.Ahuja
CFO (Retiring)
J.Vijayan
CIO
JB.Straubel
CTO
D. O’Connell
VPBusinessDevelopment
P.Carlsson
VPSupply Chain
COO
(New Position)
3
2

4. 1888 2003 2008 2010 2012
GROWTH OF TESLA
Nikola Tesla
patents
powertrain
designbuilt
aroundAC
induction motor
TeslaMotors
incorporated
TeslaRoadster
launchedwith
0-60 mph
acceleration in
3.7 secondsand
245 milesper
charge on a
lithium-ion
battery
IPOraisedUS
$226M
(NASDAQ:TSLA)
at $17/share
and closed at
$23.89
(+40.5%)
The world’s first
premium electric
sedanis launched
– Model S
3

5. 2013 2014
GROWTH OF TESLA
Model Snamed
Motor Trend’s
Car of theYear
and achieved 5-
star rating from
theU.S.National
Highway Traffic
Safety
Administration
CEOElonMusk
unveilstwo dual
motor all-wheel
drive
configurations of
Model Sthat
further improve
thevehicle’s
handling and
performance
Announcementof
Battery Swap
Pilot Program
Nevada selected
assitefor
Panasonicand
Tesla’snew
battery
Gigafactory
Teslasharessome
of itspatents to
promote open
source
development of
electric cars
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6. GROWTH OF TESLA
2015
Teslaprepares to
launchitsnew
crossover vehicle
– Model X
Tesla Launched
theFastestofall
electric vehicle
– Model 3
2018
6

7. SITUATION ANALYSIS
$29Bill
from
$15Bill
BOTTOM LINE
60%
in
Model 3
SALES
$251
NASDAQ:
TSLA
SHARE PRICE TODAY
100+
New Service
Locations
in EU
EXPANSION
7
7

8. THIRD QUARTER 2019
97,000
Units
delivered
101,160
Units
produced
VEHICLES
8
8

9. Crisis
9
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Tesla reported a massive loss in the first quarter of 2019 as it struggled to deliver its mass-
market Model 3 and faced challenges including a diminished federal tax credit and slowing
demand for its vehicles.
The $702 million loss was higher than analysts forecast for the company, slightly less than
the figure reported in the same quarter one year ago and a stark departure from two straight
quarters of profits. Its $3.7 billion in automotive revenue was $1 billion more than the year-
ago figure, on the heels of the release of Tesla’s Model 3, but down 41 percent from what
Tesla reported in the fourth quarter. Overall revenue, which includes energy products, was
$4.5 billion.
For the first couple of years after Tesla began making its Model 3, the car that is supposed to
bring electric vehicles to the masses, it faced production problems that hampered its ability
to make enough cars. Now that Tesla seems to have overcome that, it is facing more
difficulties delivering cars to customers, and therefore, being able to book a sale.

10. • Tesla is doing something that no one has done before. Even the major automobile companies with decades
of experience have not profitably produced a high performance, long range, mass market electric car the
likes of the Model 3.
• Tesla’s doing so has required the development of high volume battery manufacturing, technically advanced
automotive system architectures, extensive vertical integration, and sophisticated automation technology.
• Tesla didn’t have the luxury of time to do any of this either. Huge capital investments were required to build
the Fremont production facilities, the Giga Factory, and the Supercharger network, all of which are essential
to create a practical, environmentally friendly alternative to fossil fuel cars.
• Comparing the challenges that Tesla has undertaken against conventional auto manufacturing processes is
misguided.
• Tesla has created a new standard of performance that every other auto manufacturer will now be compared
to.
Solution
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11. TESLA IN INDIA.?
Elon Musk has put a timeline for the electric car to enter the country.
In a recent interaction with the students from IIT Madras, the Tesla CEO
said the car may run on the bumpy Indian roads in 2020.
The Avishkar Hyperloop team from IIT Madras participated in the finals of
"SpaceX Hyperloop Pod Competition 2019", a global competition
organized by the American aerospace manufacturer and space
transportation company, on July 21.
The team asked Musk when he is planning to bring his company Tesla to
India. "To which, Musk said it is probably going to happen in a year's
time,"
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12. THANK YOU
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