Impact of Trade War on Tesla: Organizational Change and Strategies

Running head: ECONOMICS
Economics
Name of the student
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ECONOMICS2
Table of Contents
Introduction................................................................................................................................3
Products......................................................................................................................................4
Current status of Tesla...............................................................................................................5
Trade war between the United states of America and China.....................................................5
Tesla affected due to trade war..................................................................................................7
Organizational change in Tesla..................................................................................................7
Steps followed by Tesla............................................................................................................8
Conclusion................................................................................................................................10
Reference list............................................................................................................................11

ECONOMICS3
Managerial economics
Introduction
Tesla is also known to sell the Model S, Model X and Model 3 vehicles. Tesla was
formed in the year 2003 under the name Tesla motors. Tesla was ranked as one of the world’s
bestselling passenger car manufacturer in the year 2018. Tesla also aims for changing the
automotive industry by creation of many innovative pieces that is known to fit together which
is called the complex coordination. The production strategy of Tesla comprises of high
degree of vertical integration that includes component production and property charging
infrastructure. Tesla is also known to operate a large number of factories for capturing
economies of scale. The technology strategy of Tesla is known to focus on pure electric
propulsion technology (Berthou et al., 2018). One of the main mission of Tesla is to
accelerate the transition of world to the sustainable energy. This particular company is known
to sell high performance electric vehicles as well as electric powertrain components.
Tesla Gigafactory 3 is a factory of Tesla which is based in shanghai. After the US
China trade war have taken place. Tesla have known to sign an agreement with the
authorities of China in July, 2018 for building a factory in Shanghai, China. This is also the
first Gigafactory build by Tesla outside USA. There are other showrooms of Tesla in
Australia as well as in Middle East. Along with the corporate headquarters which is present in
the US, the company also operates in showrooms and galleries around the world. It have
showrooms in Canada, Europe, Asia, and Australia and in the Middle East. There are various
factors which leads to organization change of a company which are the political forces,
economic forces, technological forces and competitive pressures (Dal Porto, 2018). Tesla,
Inc. is known as the famous American automotive company which is based in California. As
a vertically integrated manufacturer, Tesla deals in the production of batteries electric motors,
sensors and artificial intelligence.

ECONOMICS4
Products
Tesla is a vertically integrated manufacturer, it comprises of multiple technology
domains that consist of batteries, sensors, electric motors and artificial intelligence. Tesla is
known to offer three models of cars which are the Model S, Model 3 and Model X. Tesla
Roadster had been the first vehicle of the firm.
Model S
The deliveries of Model S started to begin in 2012 which is an all electric liftback car
which have five doors. In the year 2013, the Model S also became the first electric car to top
the monthly new car sales ranking of any country (Chaziza, 2019). The United States is the
leading market of the Tesla Model S. This particular model was also the top selling plug in
electric car in 2015. The Model S is known to exist in various versions which is known to
differ in the energy capacity, power as well as equipment.
Model X
The Tesla Model X is known to be a mid size crossover SUV which has lightweight
aluminum body. The deliveries of Model X started in the year 2015. The vehicle is unique in
the concept that it consist of gull wing doors instead of the traditional doors used in the
automobiles.
Model 3
The Tesla Model 3 is known as the luxury all electric four door sedan which is
manufactured and sold by Tesla Inc. which was produced in July 2017. The Model 3
standard Range versions delivers an EPA rated all electric range of 220 miles and the Long
Range version delivers 325 miles. Tesla also stated that Model 3 carries full self driving
hardware to be optimally enabled at a future date.