Impact of Investment Policies in UK Automotive Sector: A Study on Tesla

Topic- To investigate the
impact of investment policies of
the company within the
automotive sector in UK. A
study on Tesla

ABSTRACT
This dissertation is in respect to the topic “To investigate the impact of investment
policies of the company within the automotive sector in UK. A study on Tesla”. It incorporates a
research on the investment policies of Tesla Inc. which it makes use of in order to attain the
desired outcome. Secondary and qualitative research is being carried out using the thematic
analysis which helps in getting in-depth data pertaining to the topic. On the basis of the finding,
it can be concluded that Tesla has effective implemented its investment policies which has
helped it in attaining the higher market share along with good market positioning. It covered the
sources of funds used by the organization along with the steps it undertakes in order to plan,
formulate and implement the investment policies. In addition to this, certain recommendation is
being provided to the Tesla which will help it in effectively managing its investments.

TABLE OF CONTENTS
ABSTRACT....................................................................................................................................2
1.1 Background............................................................................................................................5
1.2 Aims and Objectives..............................................................................................................6
1.3 Research Questions................................................................................................................7
1.4 Rationale................................................................................................................................7
1.5 Significance...........................................................................................................................7
1.6 Dissertation Structure............................................................................................................8
CHAPTER-2 LITERATURE REVIEW........................................................................................10
2.1 Introduction..........................................................................................................................10
2.2 Relevance of investment theory and Keynesian Theory.....................................................10
2.3 Identification of the central issues pertaining to investment in the automobile sector in UK
...................................................................................................................................................13
2.4. Recognition of important concept pertaining to investment policy....................................15
2.5 Analysing the impact of investment policy within the automotive industry on the
employment...............................................................................................................................17
2.6 Literature gap.......................................................................................................................20
2.7 Conclusion...........................................................................................................................20
CHAPTER-3 RESEARCH METHODOLOGY............................................................................21
3.1 Introduction..........................................................................................................................21
3.2 Research type.......................................................................................................................21
3.3 Research Approach..............................................................................................................22
3.4 Research Philosophy............................................................................................................23
3.5 Data Collection....................................................................................................................24
3.6 Data analysis........................................................................................................................25
3.7 Ethical consideration...........................................................................................................25
3.8 Reliability and validity........................................................................................................26
3.9 Limitation............................................................................................................................27
3.10 Conclusion.........................................................................................................................28
CHAPTER-4 DATA ANALYSIS.................................................................................................29

CHAPTER-5 CONCLUSION AND RECOMMENDATION......................................................38
Conclusion.................................................................................................................................38
Recommendation.......................................................................................................................40
REFERENCES..............................................................................................................................42

CHAPTER-1 INTRODUCTION
1.1 Background
The automotive industry is considered to be a crucial part of the UK economic growth
and development which is over £78.9 bn in terms of turnover and which approximately
contributes to around £15.3 bn in value towards the UK economy. UK was once the largest
exporter of the cars globally and it still occupies the prestigious position in the world. It is
considered to be the world's single and biggest exporter of the goods and represents the 14% of
the total exports (Giampieri and et.al., 2019). The automobile industry is the most profitable
industry along with having vast opportunities for the growth and development which results into
making a huge contribution. The investment policy is basically the rules and guidelines which is
formed by the organization within which they are entitled to make an investment through the
way of following the procedures stated within it. In the fast-moving world, it becomes very
important to remain competitive and in order to so, it is crucial for the organization to make
relevant investment into the areas which are having greater potential for better return in the
future considering the long term.
Apart from the manufacturing there are other areas within the automobile industry which
should be taken accounted for in order to grab the opportunities available. The UK plays an
important role in the technological innovations within the industry like the autonomous driving,
or the data driven design along with making regular and continuous contribution or investment in
the research and development. Nearly 180000 people are being employed into the manufacturing
and the other around 864,000 are having excess to the wider automotive industry. It nearly
accounts for the thirteen percent of the entire UK export which is amount to £44 billion with an
annual investment of £3 billion within the automotive R&D. Pertaining to automotive market in
UK, there are over 30 manufacturers build models in excess of seventy in the UK which is also
supported by the 2500 component providers in addition to the contribution of the world's most
skilled engineers.
In the year 2019, more than 1.3 mn cars, 78270 commercial vehicles and nearly 2.5 mn
engines were built in United Kingdom. Currently, the global automotive industry is making a
huge shift pertaining to the way in which the vehicles are manufactured and powered. In order to
undertake the benefits attached to the available opportunities, it is essential for the UK
automobile industry to concentrate on the trade partnerships and the innovation.

The UK automotive market is gradually moving towards the direction of automotive
services and is making use of the service-oriented model with the players mainly focusing solely
on the customer experiences and the consumer data. This results in opening doors for ample
opportunities for the companies to grab but it is in respect to some part. On the other hand, there
are certain components which will face stiff decline in respect to the forecasts made. This makes
it essential for the companies across the value chain in adapting the market changes with the core
objective of sustaining the revenue and profits. Thus, it becomes important to make sure that the
new vehicles are aligned with the changing market trends and the current state of technology.
In order to do this rightly, it is important to understand that the properly identification of
the investment options is a must and in addition to this, analysing and determining the
investment plan which will help in effectively meeting up with the business goals and objectives.
Thus, the investment policy of the company is having a significant impact over its business
functioning and decision-making process (Bailey and De Propris, 2017). Even after investing
into the right plan it is not enough. As in addition to this, the organization is needed to work on
its strategies which will help in drawing the attention of the customers towards the new and
innovative products of the company. As merely, bringing change is not sufficient is it does not
meet with customers preferences and expectations. Therefore, all these factors results into
making the automotive industry very important for UK pertaining to its economic growth and
development. Thus, analysing the way in which the investment related policies and procedures
being set by the organization in order to survive and remain competitive.
In this research study, Tesla is taken as an organization which is the American based
electric vehicle company. Its current product involves the electric vehicles, solar panels and roof
tiles, battery storage from home to grid scale and the other similar products. Apart from it
headquarter the organization operates in in US, Europe and China having a large factory and the
company operates its showrooms and galleries across the world. In 2020, it had a production
output of 509,737 with a revenue of $31.536 billion. This study will focus on analysing the
impact of investment policy of Tesla and how it is managing its investment in order to make it
advantageous. The impact of the investment policy over the functioning and the financial
position of it.
1.2 Aims and Objectives
Aim

The aim of the study is to analyse the impact of investment policy of Tesla within the UK
automotive sector.
Objectives
 To understand the significance of the investment in respect to Tesla in the automobile
industry.
 To assess the impact of the investment decisions on the financial position of Tesla
company.
 To understand the investment policy of Tesla.
 To analyse the investment policy of Tesla in different sections.
 To access the different source of funds used by Tesla for investment.
1.3 Research Questions
1. What is the significance of investment of Tesla within automobile industry?
2. What will be the impact of investment on the financial health of Tesla?
3. How Tesla has formulated and implemented its investment policy?
4. What are the various sources used by Tesla in meeting with the investment needs?
1.4 Rationale
The reason behind the selection of this topic is that there is lot of opportunities available
in the automotive industry which is untapped. These opportunities can be taken to the advantage
through the way of implementing the effective investment related policies. This research will put
some light on the various aspects pertaining to the investment policy in respect to Tesla. In
addition to this, it helps in determining the significant difference between the investment policy
of Tesla with the other companies within the industry. This research study will assist in gaining
knowledge and understanding about the role of investment policy of the companies within the
automobile industry.
1.5 Significance
This study will be of great importance to the companies within the automobile sector in
UK as it helps in generating understanding and perspective in regard to the relevance of
investment policy over the financial functioning and performance of the company. This study is
significant in determining the efficiency and effectiveness of the company in respect to its
investment decisions and its impact over the reputation and financial of the organization.

1.6 Dissertation Structure
Chapter-1 Introduction
The first chapter is the introduction which states about the topic of the dissertation along
with its aims, objectives, research question which will be addressed in the research study. The
purpose of this chapter to provide reader with the glimpse about what the dissertation is all
about. Thus resulting into gaining an interest within the topic.
Chapter-2 Literature review
The second chapter is the literature review, which provides a critical assessment of the
literature pertaining to the themes created surrounding the subject area. In simple terms, it
provides an overall theoretical understanding about the research topic which is a small discussion
about the research which is already been done. This results gaining a meaningful idea about the
topic and the key aspects are required to be analysed in order to conduct the research in better
and effective along with meeting with the expected outcomes.
Chapter-3 Research methodology
This is the third chapter of the dissertation which states about the research methods and
approaches which are being used been used in order to carry out the research effectively. In
addition to this, it states about the ways through which the data will be gathered and the mode of
analysis of the data.
Chapter-4 Data analysis
Under this chapter, the complete analysis of the data collected is carried out. It involves
determining or identifying the common patterns and trends as per the responses or data collected.
It involves tabular or graphical representation of the data gathered in a simplified way which
makes it easy for the researcher and user of the research report in understanding it easily. After
this, critically analysis of the outcome of the data collected is carried out in order to determine
the research outcome and ensuring that it achieves the stated research aims and objectives.
Chapter-5 Conclusion and recommendation
This is the last chapter which provides the end conclusion based upon the complete
analysis of the research topic. It provides an overall insight into key aspects which were covered
in the research and how the research has effectively meet with the set research aim, objectives
and research questions. In addition to this, based upon the conclusion, recommendation is made