Innovation Audit: Tesla's History, Capabilities, and Future

This report provides an in-depth analysis of Tesla's innovation history, existing capabilities, and future products. It covers the impact of external factors on the company's innovation performance and its strategies for growth. The report also discusses the upcoming products of Tesla, including the Roadster 2020 and Model Y.

Innovation Audit

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................1
INTRODUCTION ..........................................................................................................................1
OVERVIEW OF ORGANISATION ..............................................................................................1
Innovation History of Tesla........................................................................................................1
Existing capabilities and innovation performance .....................................................................2
Industry in upcoming time..........................................................................................................3
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................6

EXECUTIVE SUMMARY
Innovation is determined as generation of creative ideas and thoughts which will help the
business in developing new products and services. This report is based upon an auto mobile
organisation named Tesla, that is specialised in manufacturing of electric cars. This organisation
is popular in producing innovative products and is recognised as one of the top fast growing
technical industry. This report co0vers the innovative history of this company and the current
capabilities of this company. It also covers the future upcoming products of this organisation
which are Roadster 2020 and Model Y and the impact of external factors upon this.
INTRODUCTION
Innovation is defined as creative thoughts, new ideas, new imaginations in context of
method or a device. It is often viewed as an application of providing appropriate solutions which
helps in meeting new needs, present need of market and unarticulated needs. This report is based
upon American based auto mobile industry, named Tesla which deals with innovative electric car
at multinational level. This organisation is known for its innovative products which helped this
industry to achieve success (Bason, 2018). This report revolves around the innovation and
technology used by this enterprise to achieve overall business growth and development. It covers
the innovation history of this organisation and its existing level of innovation and capabilities. At
the end of the report, an innovation audit for Tesla is prepared which determines its future
capabilities.
OVERVIEW OF ORGANISATION
Tesla is an US based multinational business industry that deals with automotive and
energy organisation. This enterprise is specialised in manufacturing of electric cars and solar
panel and solar city subsidiary. It also operates various assembly plants and multiple production
like Gigafactory. This enterprise was founded in the year 2003 by engineers named Marc
Tarpenning and Martin Eberhead under Tesla motors name. This company name is a tribute for
engineer named Nikola Tesla.
Innovation History of Tesla
Tesla was founded in the year 2003 by American entrepreneurs Marc Tarpenning and
Martin Eberhard (Bei, 2019). This enterprise was developed with an aim to develop electric
sports car by using innovative ideas and resources. In 2008, this enterprise has luanched its first
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ever car which is a complete Roadster electric car. In tests by company, this car has attained 245
miles in a solo charge, which ranges unprecedented for production of electric car. In additional
tests, it is shown that the performance of this car can be compared to gasoline powered sports
car. The lightweight body of a car was made out of carbon fibre (Tesla, Inc, 2019). This car
produced no emissions of taiplale and it do not use any internal engine of combustion. It was
founded by Tesla motors that it has attained the efficiency that was equal to 135 ,million per
gallon.
In the year 2012, Tesla stopped the production of Roadster which concentrates upon its
new Model named S sedan and was acclaimed by certain critics of automotive industry for its
design and performance (Chen, Wang and Huang, 2019). In the starting of 2012, stations was
built by Tesla which were called Supercharges in Europe and United States. This was designed
to charge batteries quickly and at no extra charges by Tesla owners. In the year 2015, this
automotive industry has released the Model X, which was a crossover vehicle, that is, a vehicle
that has feature of sport utility but built upon car chassis.
This organisation also branched itself with solar energy products and Tesla bought the
company of Solar panel in the year 2016. In the year 2017, this company changed its name to
Tesla, Inc., for reflecting that it do not sold only cars any longer.
Due to increase in innovation and technology, Tesla has to make certain changes in its
strategies. Recently, this organisation has changed its sales strategy by closing down its lay-offs
and started online sales only. Tesla is restricted to open stores in various states because of some
dealership laws. In some of the states, they call of the galleries of their stores in which orders are
not taken and the workers are unable to discuss the prices with the customer, instead they ask
them to have a look on online for such orders. It also seems to standardised all across the country
rather than just pushing cars. Despite the dealership laws lacking, this strategy is likely to get
affected worldwide sales also.
Existing capabilities and innovation performance
Tesla is one of the innovative organisation which is specialised in developing electrical
cars which is of high quality. It is said that this organisation has certain elements which helps it
in becoming the top most innovator in the history of automotive industry. This industry
understand the value preposition of early adopters of EV and acts in accordance. Out of the car
makers, this organisation stands out to understand that EV's are one of he sustaining innovation .
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On one hand, all the other EV makers tout upon gas savings and benefits of environment, Tesla
aims at positioning its vehicles as a high aspirational performance cars which just happened to be
electric cars.
Around some years, this business entity can manufacture half of lithium batteries of the
world. Thus, over the time, this business can be positioned to become most advance battery
maker in the world (Cohen and Rozario, 2019). Through establishing as an aspirational brand,
this organisation can positioned towards intel of batteries and do not just make advance batteries
but this is capable to form a brand premium for the batteries that includes components like
computer chips and commodification. This organisation is currently trying to develop innovative
pedigreed by using artificial intelligence. This is utilised as a primary tool for manufacturing
vehicles. The strategy of Tesla with artificial intelligence had seemed to long term play and in
the past years, it has largely spend its gathering data from training and its neural networks.
At present, Tesla's strategy is to innovate its products by designing and developing
innovative processes and vehicles (Currie, 2018). In addition to this, Tesla uses innovation and
its processes through establishment of collaboration of R&D with some of the major companies.
This way, it helps in managing future development of its innovative techniques. This enterprise
has shown a high level of information technology innovation into certain aspects of EV
businesses. It has helped Tesla to develop even more as spin of IT but an player of auto mobile.
Therefore, Tesla's story is recognised as one of the singular bold innovative vision and it is based
upon thinking out of the box for ensuring that it stay itself in lap which is ahead of competition.
The current strategy that is adopted by Tesla is market penetration which helps in
enhancing the growth of a business by enhancing its sales revenue in the existing markets. For
instance, its aggressive marketing, this organisation has goal for rolling out and selling more
electric cars in U.S. This organisation is becoming innovative day by day by producing electric
vehicles which are highly desirable. The electrical car produces by this organisation can go faster
and also safer than internal combustion vehicles. It has been pointed out that astonishing fact that
this organisation reeled around 400000 reservation for its latest Model 3 and there are around
$16 billion vehicles which are sold. Moreover, its innovative technique has helped Tesla to be
number one out of the top innovative car manufacturers in Forbes Mots Innovative Companies
list in 2015. This determines that the main catalyst behind transformation of auto industry from
ICE vehicles to the electrical vehicles.
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Industry in upcoming time
This enterprise keeps on innovating new products in market to stay competitive in market
and face the competition. Tesla has announced in 2017 that it will develop a new product named
Roadster which will be innovative and has advanced features. In upcoming time, this
organisation is coming up with Tesla Roadster 2020 which will be the first follow up towards the
debut electric car of this company. This upcoming super car will have the ability to go from 0 to
60 miles, as per hour (Tesla's Future Products: A Look At 3 Vehicles The Electric Car Company
Plans To Release, 2019). As per its name, this car will release in next year and it will cost around
$200,000.
Another product which is going to introduce by this company is Tesla semi trucks that
will have the capacity to travel around 640 kilometres on charge of 30 minute. This truck will
have the capacity to go from 0 to 60 MPH in just 20 seconds and will haul 80000 pounds. It is
expected that it will cost $180,000. Another new innovative product which is about to develop
by this company is Model Y that was announced in March, 2019. This will be a compact SUV
with having seven seats around and has the capacity to travel 300 miles on full charge.
Although, this organisation has successful innovative ideas and innovation which helps it to
grow and develop in market. There are certain external factors which can affect this company
and its new innovative products. These factors are political, economical, social and technological
which are elaborated as follows-
Political Factors: The major market's political stability has the capability to make macro
and remote environment of Tesla which is favourable to generic competitive strategy of Tesla
and it certain growth strategies, which is market penetration. In this analysation, this factor is
considered as an opportunity for upcoming products of Tesla as it will become easy for this
company to introduce its product in target market (Heinelt, 2019).
Economical Factors : This factor has also favourably affected the overall functioning of
Tesla as it is benefited from the low cost of battery. For instance, this factor helps in translating
the affordability if electric auto mobile products of this company. This helps to create an
opportunity for the new products of Tesla. Also, as this enterprise helps in improving the
renewable energy solution that has become popular.
Social Factors: This external factor acts as an opportunity for new products for Tesla
such as due to low carbon based lifestyles of people and their increased preference for the
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renewable energy has created growth opportunities for its new products. Moreover, this company
has an opportunity to boost up its financial performance which is based upon increased wealth
distribution in the developing markets. This has increased the potential buyers population of this
company's compared to expensive cars. In this, Tesla can introduce these products at
international level.
Technological Factors: Due to innovative technologies and environment, Tesla has an
opportunity to increase the technology and innovation of its products. Moreover, the increased
automation of business has become a trend which helps in creating opportunity for its new
products like Roadster 2020 and Model Y. Also, the developed popularity of online mobile
system has prompt the entity to increase such system in auto mobiles. This factor will be helpful
for this organisation to increase its sales and profitability with the help of innovative techniques
and features (Kafetzopoulos and Skalkos, 2019).
CONCLUSION
From the above report, it has been concluded that innovation is important component of
an organisation which helps it to develop products that helps in meeting customer's expectations
and demands. In this report, it has been concluded that innovation history of an organisation
helps in understanding the mistakes so that it can rectify in upcoming times. Moreover, an
enterprise has to keep updating its innovative techniques and solutions which will help it to
achieve success and development of its overall functions. It is significant for an enterprise to
prepare itself for future so that it can develop new products and services by using latest
techniques. The organisation can also consider macro environmental factors that can affect its
business while developing new product such as technological, social, political and economical.
Tesla has changed its marketing as well innovative strategies in times which helps this
organisation to become one of the top most innovative companies of the world.
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REFERENCES
Books and Journals
Bason, C., 2018. Leading public sector innovation: Co-creating for a better society. Policy
Press.
Bei, L. I., 2019. Discussion on Information Audit in the Era of Big Data. DEStech Transactions
on Economics, Business and Management, (icaem).
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Chen, Q., Wang, C. H. and Huang, S. Z., 2019. Effects of organizational innovation and
technological innovation capabilities on firm performance: evidence from firms in
China’s Pearl River Delta. Asia Pacific Business Review, pp.1-25.
Cohen, M. and Rozario, A., 2019. Exploring the Use of Robotic Process Automation (RPA) in
Substantive Audit Procedures. The CPA Journal, 89(7), pp.49-53.
Currie, S. ed., 2018. Drawing, 1400-1600: Invention and Innovation: Invention and Innovation.
Routledge.
Heinelt, H., 2019. Sustainability, innovation and participatory governance: a cross-national
study of the EU eco-management and audit scheme. Routledge.
Kafetzopoulos, D. and Skalkos, D., 2019. An audit of innovation drivers: some empirical
findings in Greek agri-food firms. European Journal of Innovation Management. 22(2).
pp.361-382.
Kang, Y. J. and Piercey, M. D., 2019. PRACTITIONER SUMMARY Would an Audit Judgment
Rule Improve Audit Committee Oversight and Audit Quality?. Current Issues in
Auditing.
Mukherjee, V. K., 2019. The Changes of Audit Fees by Management Risk in
firm. INTERNATIONAL JOURNAL OF MANAGEMENT, AND SOCIAL SCIENCES
REVIEW (IJMSSR). 1(3). pp.https-int.
Psomas, E., Kafetzopoulos, D. and Gotzamani, K., 2018. Determinants of company innovation
and market performance. The TQM Journal. 30(1). pp.54-73.
Online
Tesla, Inc. 2019. [Online]. Available Through: <https://www.britannica.com/topic/Tesla-
Motors>.
Tesla's Future Products: A Look At 3 Vehicles The Electric Car Company Plans To Release.
2019. [Online]. Available Through: <https://www.ibtimes.com/teslas-future-
products-look-3-vehicles-electric-car-company-plans-release-2817400>.
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