Tesla Motor (Future Perspective) Report

Tariq Mehmood SID56908 CID104082
PAF Karachi Institute of Economics and Technology
Faculty:
Sir TahseenIqbal
Members:
Tariq Mehmood56908
Class Project
SP 20
May 5
2020
Tesla Motor
Organizational
Development

Contents
1. How was Tesla started
2. Mission Statement
3. Vision Statement
4. Tesla's strategy
5. Tesla made a profit
6. Tesla's weaknesses
7. Tesla strength
8. Future of Tesla Motors
9. Tesla, Inc.’s Mission Statement & Vision Statement (An Analysis)
10. Future Vision of Tesla Motors
Future perspective towards growth of cars
1. The Tesla Semi, Roadster, and Model Y All In 2020
2. Over A Million Robotaxis on the Roads
3. Feature Complete” Self-Driving Software In Every Tesla
4. A Network Of Underground Roads To Avoid
5. The Hyperloop
6. Building “Future Vehicles” At Gigafactory 4 In Berlin
7. Elon Teasing “Advanced Manufacturing Technology
Tesla is about to reveal how badly corona virus hit its profit plans
1. Tesla furloughs staff and slashes salaries as Covid-19 pandemic worsens
Competitive Profile Matrix (CPM)
These are globally issue but our prime focus us how they are growing what are the step
they followed
1. According To Our OD Course Content “Tesla Company” Focus On
2. OD Objectives
3. Organization Development characteristics
4. Where Will Tesla Be in 5 Years
5. Future of Tesla motor
6. Stock of Tesla motor
7. Tesla after 10 Year
8. Tesla Made Profit Yet
9. Conclusion

How was Tesla Started?
Founded as Tesla Motors, Tesla Inc. was incorporated in July 2003 by Martin Eberhard and
Marc Tarpenning who financed the company until the Series A round of funding. The founders
were influenced to start the company after GM recalled all its EV1 electric cars in 2003 and then
destroyed them
Mission Statement
Tesla’s mission statement was “to accelerate the world’s transition to sustainable transport”
Vision Statement
Tesla’s Vision statement “to create the most compelling car company of the 21st century by
driving the world’s transition to electric vehicles”
Tesla's strategy
Musk asserted that "The strategy of Tesla 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, 2006).
Tesla made a profit
Tesla still didn't turn an annual profit — in fact; it lost $862 million in 2019. But that was better
than the $1 billion loss the company posted in 2018. ... Tesla CEO Elon Musk even said in late
2018 that his company was single-digit weeks away from death at one point.
Tesla's weaknesses
Despite its strong brand as a manufacturer of electric vehicles, Tesla, Inc.'s performance and
potential future growth suffer from the following major weaknesses: Limited market presence.
Limited supply chain. High prices
Tesla strength
When medical professionals refer to magnetic resonance (MR) scanners, they sometimes say the
scanner is a 1.5T or 3.0T scanner. This is because scanners are frequently identified by their
magnetic field strength. ... One tesla is equal to 10,000 gauss
Future of Tesla Motors
Musk predicted earlier this year that Tesla would have 1 million robotaxis on the road in 2020,
though technology experts have cast doubt on that claim. Tesla said it is still on track to produce
360,000 to 400,000 vehicles this year, which would require more than doubling its output from
the first half

Tesla, Inc.’s Mission Statement & Vision Statement (An Analysis)
Tesla, Inc.’s (formerly Tesla Motors, Inc.) mission and vision statements reflect the nature of its
prominent all-electric automobile manufacturing and related businesses. Established in 2003, the
company became profitable in 2013. Continued growth shows that the market is responding to
the organization’s automotive and energy storage products. This condition highlights the
appropriateness of the company’s mission statement. In essence, the corporate mission statement
guides Tesla’s strategic decisions, such as in what the company needs to do in order to achieve
business effectiveness. On the other hand, the corresponding corporate vision statement shapes
Tesla’s direction of organizational growth. For example, the company aims for leadership as a
multinational automotive business that focuses on electric vehicles. With a strong brand image
and increasing popularity, the company is positioned to succeed in the global electric automobile
market. Satisfaction of the corporate mission along with the corporate vision serves as an
indicator of Tesla’s operational effectiveness and business development.
Tesla, Inc. follows its corporate vision and mission statements to focus its business on electric
automobiles and related products, such as solar panels and rechargeable batteries for cars and
other applications. However, recent changes in the market and the business have prompted the
company to revise its corporate mission statement while keeping the same corporate vision
statement for the meantime. Current strategies and management initiatives reflect these changes.
For example, Tesla’s marketing mix (4Ps) emphasizes the target role of the company as a major
player in the renewable energy storage market.
Future Vision of Tesla Motors
China
It’s hard to overstate the importance of China to Tesla’s future. The country is the world’s largest
auto market today, and it’s becoming apparent that it will eventually be the center of the world’s
auto industry. According to the production director at China's Gigafactory, Tesla
is already locally producing more than 1,000 cars each week. Tesla is moving full speed ahead
here, and leapfrogging the struggling global brands - the company also just scored $1.4 billion in
new financing from Chinese banks. Not the least among Tesla’s accomplishments was the feat of
building its Chinese Gigafactory in only 10 months. Jim Cramer, the loud and lively Tesla
skeptic turned true believer, called it “astounding,” pointing out that Intel, which has “long been

considered the gold standard when it came to Greenfield factory build-outs,” has never managed
to get a factory up and running in less than 18 months.
Giga factory 4
Next up is Gig factory 4 in Berlin, which is expected to have an initial capacity of 250,000
vehicles per year. After China, Europe is destined to be the world’s second-largest market for
EVs, and Tesla is ahead of the game in this region, too. The next step is to link the two markets,
via the Central Asian nation of Kazakhstan.
Tesla Semi
The Tesla Semi is to begin limited production in 2020. Things will probably start slowly in this
department, but once a few Semis have logged substantial mileage in real-world fleets, growth
should be steady, and the long-term potential is gargantuan. Unlike passenger car buyers,
commercial fleet operators don’t buy on emotion - they look at dollars and cents, and once
they’re convinced of the fuel and maintenance saving of electric trucks, diesel will be on death
row. There are well over two million tractor-trailer trucks in the US alone, and so far, Tesla is the
only company that’s demonstrated a production-ready electric semi.
Tesla Roadster
Tesla's new Roadster will never sell in the volume that’s expected for the Semi, but that’s alright
- it will be a high-margin vehicle that should add a respectable sum to the company's bottom line.
Equipped with the new 3-motor Plaid power train, which is also being developed for Models S
and X, it should defend the company’s position as the maker of the quickest cars on the planet
against an emerging array of challengers from Porsche and others.
Battery Progress
Tesla has scheduled a Battery & Power train Investor Day in 2020, and some suspect that this
will be the occasion for a momentous announcement. Elon Musk has hinted that there are a
couple of new tech-related goodies in the pipeline, and some Tesla-watchers believe, based on
the prices announced for the Cyber truck and Model Y, that Tesla could be sitting on
a substantial battery advance. Tesla’s vehicles already have enough range (and way more than

enough performance) to satisfy most buyers, so any increase in battery capacity could translate to
lower prices - and many more potential sales.
Tesla 'services'
Beginning in 2020, Tesla could develop several potentially enormous new sources of revenue.
Tesla’s recent announcement that it would start charging ten bucks a month for Premium
Connectivity may be just the first item on a menu of paid services (Tesla Insurance, Tesla
breakfast cereal…).
Kevin Rooke, writing in The Spring, believes that Tesla could leverage its ecosystem of services
to generate significant revenue, and draws some interesting parallels between Tesla and Apple,
which generates a third of its gross profit from ancillary services. Tesla is also rolling out
optional upgrades such as the Acceleration Boost for Model 3, which shaves up to half a second
off 0-60 time (a must-have item!) and starts at $2,000. Remember, this is a software upgrade, so
Tesla’s marginal cost is near zero. The market for emissions credits is poised for huge growth in
Europe. (Legacy automakers who fail to sell enough of their own EVs to satisfy EU regulations
can opt to make cash payments to Tesla instead.) Tesla is expected to collect a cool $2 billion
from Fiat Chrysler alone.
And more...
Is there more in the cards for 2020? Absolutely. We haven’t even mentioned Tesla Energy,
which is all the rage Down Under, the Solar Roof, which finally seems to be almost ready for
prime time, the headline-grabbing Cyber truck, or Model Y, which Elon has said may be the
company’s best-selling vehicle yet. Happy New Year indeed

Future perspective towards growth of Cars
There are huge no of list for their future visionary growth of company some are listed
below
1 The Tesla Semi, Roadster, And Model Y All In 2020
Not only is Tesla planning to ramp up production to 500,000 cars in 2020, but the company is
planning to do it by releasing three extreme models back-to-back-to-back. First will probably be
the Model Y crossover, announced in March 2019 six years after its name was trademarked.
Then the Tesla Semi, which will be capable of hauling 80,000 pounds, and then the Roadster
2020, a $200,000 supercar with 10 rocket thrusters, worthy of a 1.9-second 0-60 mph time
(fastest in the world), and 250 mph top speed
2 Over A Million Robotaxis On The Roads

According to Elon Musk, even though there are less than a million Teslas currently on the road,
he would like to have over a million “robotaxis” on the roads by the end of the year. He has a
broad vision for the company’s autonomous ride-share network, and Tesla owners will be able to
equip their vehicles with ride-sharing apps, provided by Tesla, and the company will take a 25-
30% revenue from each ride.
3 Feature Complete” Self-Driving Software In Every Tesla
Musk has talked about his Tesla Network and the ambition to allow owners to place their
vehicles as ride-hailing apps since 2016. Right now, the remaining step is the software. Musk
says the software will be “feature complete” and at a reliable level to where no-one will need to
pay attention to the road sometime in the middle of 2020. “Next year for sure, we’ll have over a
million robotaxis on the road,” he said at the company’s 2020 Autonomy Day.

4 A Network Of Underground Roads To Avoid
One of the most farfetched and ambitious ideas Elon Musk has is to build a massive network of
underground roads, in order to avoid traffic above-ground. His company Boring is already
excavating and digging the first tunnel, from Los Angeles International Airport to Culver City,
Santa Monica, Westwood, and Sherman Oaks. He wants tunnels to cover the greater Los
Angeles area, then the UK.
5 The Hyperloop
Virgin Group founder Richard Branson is already an investor and board member in what Elon
Musk has called the “Hyper loop.” Musk and a team of engineers have designed the Hyper loop
as a high-speed transportation system where capsules travel at supersonic air bursts in reduced-
pressure tubes. The system is to make travel faster and cheaper between cities. Musk speculates a
Hyper loop between LA and San Francisco, and it would cost $6 billion to build.

6 Building “Future Vehicles” At Gigafactory 4 In Berlin
A few days ago, word came out that Tesla plans to build “future vehicles” at its Gigafactory 4
plant stationed in Berlin, Germany. The project is on a 300-hectare plot of land, and the Model Y
will be the first car built there, as well as powertrains and batteries. Though it won’t be
operational or built until 2021, Gigafactory 4 already has its own Twitter page.
7 Elon Teasing “Advanced Manufacturing Technology
Another ominous but non-specific plan of Tesla’s, according to Elon Musk, is to build cars using
“advanced manufacturing technology.” We don’t know what that might entail, other than
changing the way that cars are built on conveyor belts and such. He teased the unannounced idea

during the Model Y unveiling, and again at the start of 2020 at the “Made-In-China” Model 3
delivery event.
Tesla is about to reveal how badly corona virus hit its profit plans
New York (CNN Business)
This was supposed to be the year that profit became the norm at Tesla. Then came the corona
virus crisis.
Tesla recorded its first annual profit in 2019, when results were adjusted to exclude special
items. It said that it expected to be profitable going forward.
The corona virus shifted those plans. The company was soon dealing with a temporary shutdown
of its new factory in Shanghai because of the outbreak of the virus in China. And by March it
was forced to temporarily shut its plant in Fremont, California, which supplies US and European
buyers.
Still, Tesla managed to build more than 100,000 cars in the quarter, although it delivered only
88,400 of them, a drop of 21% from the number of completed sales in the fourth quarter.
This is a key time for Tesla. It just started production of its lower-cost SUV, the Model Y, that it
expects could soon be its bestselling and most profitable vehicle.
But automakers around the world are having an exceedingly difficult time. Besides having
to suspend production at their factories around the world, many auto showrooms are shut
because of governmental stay-at-home orders. And with millions of people losing their jobs and
millions more working from home, demand for new cars has been significantly reduced.
Another issue for Tesla could be the sharp drop in gasoline and oil prices, which reduces the
economic incentive to switch from traditional to electric cars. But most Tesla purchases are not
just being made based only on gas pump savings.
Investors will be looking for guidance from Tesla about what's ahead in this new reality that has
changed so much since early January.
Analysts are now forecasting that Tesla will report a narrow loss in the first quarter, and a larger
loss in the current second quarter, before returning to profitability in the second half of the year.

Tesla furloughs staff and slashes salaries as Covid-19 pandemic worsens
Still, Tesla shares are holding their own, despite the sharp change in the industry's economics. Its
shares are down about 16% since its record high of $917 on February 19. Even with that decline,
the stock has nearly doubled in value so far this year.
That stock price surge could result in a $700 million payday for CEO Elon Musk sometime later
this quarter.
Musk does not receive a cash salary but takes options and equity awards instead. And he receives
the options only if the company hits a variety of operational goals and stock valuations.
The package he was granted in early 2018 has yet to pay him any options, even as the company
has hit its first sets of operational targets. But he's due to receive 1.7 million options once the
company has an average market value of $100 billion over the course of six months. It's close to
achieving that goal.
Based on Monday's closing price, those options are worth $1.3 billion -- a profit of $750 million
to Musk after he pays the $350.02 a share exercise price.
CPM is showing that Tesla motor rating is high 3.03 then other companies it means Tesla motor
have potential to run business in this competitive environment to take above average return
Kia Motors The Volkswagen Tesla Motor
Critical Success
Factor Weight Score
Weighted
Score Score
Weighted
Score Score
Weighted
Score
Technology 0.20 2 0.32 3 0.48 4 0.64
Price 0.24 4 0.88 2 0.44 3 0.66
Product Range 0.20 3 0.6 1 0.2 4 0.8
Geographical Reach 0.07 1 0.07 4 0.28 2 0.14
Product Quality 0.21 4 0.84 3 0.63 3 0.63
Innovation 0.08 1 0.08 4 0.32 2 0.16
TOTAL SCORE 1 2.79 2.35 3.03

THESE ARE GLOBALLY ISSUE BUT OUR PRIME FOCUS
US HOW THEY ARE GROWING WHAT ARE THE STEP
THEY FOLLOWED
According To Our OD Course Content “Tesla Company” Focus On
To deal with the challenges of the environment and stay responsive, businesses are changing
their processes, systems, and structures. They are doing so by downsizing, reengineering,
evolving better structures, innovating, and embracing sophisticated technologies.
OD Objectives
1. To improve the functioning of individuals, teams and the total organization, and the total
organization
2. To teach organizations members how to continuously improve their own functioning.
Organization development characteristics
 Organizational development brings about organizational change in a planned manner.
 It takes a collaborative approach to problem-solving by involving all stakeholders
affected by the changes to increase their participation
 It increases the effectiveness of organizations by appealing to the humanistic values
within the people who make up the organization
 It considers the organization as an open system that is in constant interaction with its
environment, with interdependencies and interrelationships between the various
organizational elements
 Organizational development generates data using primary and secondary research
techniques. This data then provide the basis for the planning of further action to be taken
in the interest of the organization
 It develops programs that emphasize on improvements in organizational efficiency
Where Will Tesla Be in 5 Years
Predicting the future for any company is never an exact science, but when it comes
to Tesla (NASDAQ:TSLA) it's almost an exercise in futility. After all, the carmaker is known for

overpromising and underperforming. It's also operating in a market that's seeing increased
competition, threatening its leadership position.
Nonetheless, Tesla could remain the leader in what may be a bigger market in five years, granted
it's able to execute. In order to do that, it needs robust demand, international expansion, and
diversification into other markets. It also needs CEO Elon Musk to perform. A tall order, but one
that, judging from its recent moves, is possible.
Future of Tesla motor
Musk predicted earlier this year that Tesla would have 1 million robotaxis on the road in 2020,
though technology experts have cast doubt on that claim. Tesla said it is still on track to produce
360,000 to 400,000 vehicles this year, which would require more than doubling its output from
the first half
Stock of Tesla motor
Tesla's stock “popped” today. The price per share went up 9.7% to close at $524.86. That's quite
a leap from a low of $178.97 on June 3, 2019, but Elon Musk's electric-car company has been
rallying steadily since then
Tesla after 10 Year
Tesla investor Ron Baron sees $1 trillion in revenue in 10 years — and that won't be the
end. Tesla shares closed up nearly 20% on Monday at a record high $780.00 a share. The
company's market cap is now more than $140 billion, nearly triple that of General Motors
Tesla Made Profit Yet
Tesla still didn't turn an annual profit — in fact, it lost $862 million in 2019. But that was better
than the $1 billion loss the company posted in 2018. ... Tesla CEO Elon Musk even said in late
2018 that his company was single-digit weeks away from death at one point
Conclusion
If we go through our class discussion this company is growing and achieving their objective and
vision in situation of COVID-19 just because they are following OD practice if OD practice
followed by any organization the productivity will automatic increase and organization will grow
up.
Thank you 

Tesla Motor (Future Perspective) Report

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Tesla Motor (Future Perspective) Report