TESLA MOTORS Expansion in the Netherlands
Added on 2020-09-17
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Table of ContentsINTRODUCTION...........................................................................................................................1Background information on Tesla Motors: ................................................................................1Background of Netherlands.........................................................................................................2ANALYTICAL APPROACHES................................................................................................5DATA/DIAGRAMS/REPORTS.................................................................................................8CONCLUSION..............................................................................................................................11.......................................................................................................................................................11REFERENCES..............................................................................................................................12
INTRODUCTIONIn this report, the country chosen for expansion is NETHERLAND and the organisationis TESLA MOTORS. Netherland is also known as Holland. The reason behind choosing thisparticular country is, its climate which is best suitable to Tesla Motors. Climate of Netherlandcan be described as marine and temperate which means generally its temperature is lyingbetween -10 C to 220 C which is suitable for companies manufacturing operations. Also Hollandis consider as a best trading nation (Chang, 2016). The purpose of this report is to present a planfor expansion of Tesla Motors in Netherland. Background information on Tesla Motors: Tesla Motors or Tesla Inc. is an American auto-maker, energy storage and solar panelmanufacturer company which is based in Palo Alto, California (Brito, 2011). It was founded in2003, it is popular for its special electric cars, lithium-ion battery energy storage and residentialphotovoltaic panels. It is subsidiary company of Solar City. Some of the additional products soldby Tesla are Tesla Power wall and Power-pack batteries, solar panels and solar roof tiles. The CEO of Tesla Motors is Elon Musk, he visualize Tesla as a technology company andindependent auto-maker. He targets average consumers as his aim is to offer electric cars atconvenient prices to customers. Tesla Motor's co-founders are Martin Eberhard and MarcTarpenning. Tesla Motor's Model S was the world's best-selling electric car which provides plug-in facilities in 2015-16. These models sales reached 150,000 units in November 2016. Tesla operates multiple production and assembly plants at Reno, Nevada with the nameof Gigafactory 1. In 2017, Consumer reports ranked at number one position in American carbrand and 8th among global car-makers. The founders of Tesla were influenced to start thiscompany to defeat General Motors in 2003. Size of Tesla Motors: Tesla Motors is a big company which is having 33,000 employeeswho works for this company to make Electric Vehicles of Tesla Energy. Companies Total assetsare $22.66 Billion and its total equity is $4.75 billion. It's gross profit reached to $1.59 billion tillnow. But still company face operating loss of $667 million due to high selling general andadministrative expenses which is $1.43 billion.Financial performance of Tesla Motors: Companies annual growth rate and real revenuegrowth has been recorded 78% in 2009. In 2012, company has shown sustainable growth in1
revenue's due to strong slowdown in sales. Tesla Motor's mark-up index of its gross profit hasdropped by 27%, which impacts gross profit by reducing it from 87% to 81%. Hence, in 2012,company gave offer to a customers, to purchase Tesla car at cost of production (Brady, 2017).Since 2009, companies cost of goods is going upward with decreasing in net operating income.Company has faced losses for 5 years. Ownership structure of Tesla Motors: This report will show how much shares of TeslaMotors is hold by other institutes or shareholders. Institutional holding is reported as 57.51%which is breakdown as; total number of holders 797, total number of shares hold by these holders96,652,512 and total value of holdings $29.62 billion. Top 5 holders of Institutional holdings are:1.FMR LLC - $19.5 million2.BAILLIE GIFFORD & CO – $13.09 million3.VANGUARD GROUP Inc. – $6.78 million 4.BLACKROCK Inc. – $5.41 million 5.PRICE T ROWE ASSOCIATES Inc. – $5.07 millionCurrent International Operations of Tesla Motors: Tesla is investing in expanding itsEuropean operations. It is planning to launch new Gigafactory as a plant for producing batteries.Gigafactory is an automated manufacturing research centre. This expansion includes acquiringGerman firm which is Grohmann Engineering. Tesla Motors has its showrooms across the world.It's European headquarters in Amsterdam and distributors are in Tilburg, Netherlands. Background of NetherlandsThe Netherlands is also known by the name Holland, its on the coast of North Sea whichis twice of New Jersey. This country has maximum dimensions of 360 by 257 km and itsgeographical area is low and flat except Limburg which is located at south-east. Half the area ofNetherland is below sea level. All drainage of Netherland is dumped into North Sea and its mainrivers are Rhine, Maas and Schelde which has their sources outside the country. In this country,manpower and horsepower were used for agriculture but now they are replaced with windmillslike mill network at Kinderdijk-Elshout. Netherland in one of the world's most densely populatedcountry. Here, most people are over the age of 65 years. Also prostitution, soft-drugs likemarijuana and hashish are legal, also there's no restrictions on use of euthanasia. Below are thediscussion of economical, cultural, political, legal and financial environment of Netherlands:2
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