Tesla Inc. Company Overview
Tesla, Inc. is an American electronic and clean energy company car based in California. The company produces electronic products such as electric cars, solar panels, battery energy storage and other green energy related products. Tesla as founded on 2003 by a group of engineers who wanted to prove that that electronic cars are better, quicker and faster to drive than gasoline ones. Today, Tesla builds full electric cars. In 2008, Tesla launched its first electronic powered power-train. From there, Tesla designed the world’s first all-electric Suden from scratch- the Model-S.
Model-S has gained a substantial market share for its performance, efficiency and safety. The car acts as the world’s icon for the car of 21st century with the longest range of electronic range of electric cars. Over time, Model-S from Tesla has been improved in terms of software and architecture update to an acceleration speed of 0-60 mph with 2.8 seconds. From 2015, the company has extended its product line with Model X, Model 3, Tesla Semi, Model Y and Cybertruck (Roberson, 2021; Tesla.com, 2018). As of March, 2020, Tesla made sales of $26 billion, the company is valued at $773 billion.
Introduction to Tesla Case Study
Tesla, Inc., formally known as Tesla Motors, Inc. has become a world leading company in innovative and innovative and energy solutions. The company has been a good opportunity to learn for students in the university. Tesla Inc. cases study provides students with real life skills in opportunity analysis. Apart from the business perspective in Tesla case study, the company provides insightful information about the future of cars and environment.
According to Karamitsios (2013), the transport sector is the leading contributor of green house gases in the world. Automotive companies relies heavily on fossil fuel technology. Due to the environmental exposure caused by emission of CO2 from cars, car manufacturers are required to implement environmentally friendly technologies in their products. Electronic vehicles has been described as the most appropriate solution to the problem. Tesla Inc. is one of the companies that have prioritized use of electronic cars as main source of energy. The company has gained interests in many scholars due to its use of latest technology such as AI.
Lessons from Tesla Approach to Innovation
In a review conducted by Furr & Dyer (2020), few companies have managed to adopt new technology and innovation as Tesla. Based on the case study of Tesla, it is evident the Elon Musk is a master in building and using innovation capital to gain support. Elon Musk has not only showed success in his PayPal and Space X projects, but also showing success in the future projects. One thing about Musk is that he makes sure that he materializes his ideas by putting the ideas into physical form.
Tesla makes unique not finished product but in the architecture used to produce the electronic vehicles. Tesla has more software than the average vehicle , and which is integrated around a single central software architecture. Despite that most gas-powered cars include software component, Tesla cars has more complex architecture making it hard for them to imitate Tesla’s ability to optimize vehicle performance and update software.
Tesla uses a simple architecture of a flat pack of batteries at the base, two electronic engines for front and rear and no transmission. Tesla car gives an advantage over traditional electronic car by having greater battery management efficiency, lower center of gravity and greater energy density. This means that Tesla is likely to beat out competitors trying to leverage parts of the old internal combustion architecture.
Tesla Eco-system Strategy- Tesla Case Study
Tesla ecosystem strategy considers individual components in production. Tesla’s strategy of the system level accounts for the entire system components needed for a consumer to use its product. This is the reason why Tesla has built a charging network to cater for cars across the country. Tesla plans to install more charging stations fast to enable users to drive for longer distances. In future, car makers will be forced to create inter-operability network to cover the existing need.
Tesla’s plan continues to be a multi-probed strategy for the the fast changing industry. The main strategy has a unique element at each level of the ecosystem. For instance, Tesla has overturned the main product architecture. Tesla products have been highly inspired by the love for having an echo-friendly driving.
Furr, N., & Dyer, J. (2020, February 12). Lessons from Tesla’s Approach to Innovation. Retrieved from Havard Business Review: https://hbr.org/2020/02/lessons-from-teslas-approach-to-innovation
Karamitsios, A. (2013). Open Innovation in EVs: A Case Study of Tesla Motors. Environmental Studies Journals, 4.
Roberson, B. (2021, March 23). Tesla (TSLA). Retrieved from Forbes: https://www.forbes.com/companies/tesla/?sh=4c92450148d4
Tesla.com. (2018, December 01). Tesla’s mission is to accelerate the world’s transition to sustainable energy. Retrieved from Tesla: https://www.tesla.com/en_GB/about