Innovation, Change, and Leadership in Tesla Inc.

Leading innovation
and change

Table of Contents
INTRODUCTION.................................................................................................................................3
Introduction to the business...................................................................................................................3
Innovation.............................................................................................................................................5
Change...................................................................................................................................................7
Leadership.............................................................................................................................................9
CONCLUSION...................................................................................................................................10
Recommendations...............................................................................................................................11
REFERENCES....................................................................................................................................12

INTRODUCTION
Innovation is stronger, quicker, or less expensive than your competitiveness. This leads to
continuous changes which can contribute to the development of an innovative concept that
shifts laws (Beard and Burger, 2017). Innovation means developing and implementing
concepts that change the manner in which things are performed or accomplished. New goods
or services, new or better business practises, improvements in the direction the products are
sold, or the implementation of new technologies can lead to innovation. In order to survive an
organisation must always innovate. Changes in a company contribute to several beneficial
things that stay important in the industry sector so this maintain a competitive advantage.
Change promotes creativity, developing talents, developing employees and improving
employment opportunities and moral standards for employees. Tesla is considered in this
report. It is founded by Elon Musk and is founded in year 2003 and the headquarters of this
organisation is in Palo Alto, California, United States. This report covers SWOT analysis,
PEST analysis, and innovation along with models, change management and the use model of
change, leadership and styles in context to selected organisation.
Introduction to the business
Tesla, Inc. is an American company headquartered in Palo Alto (California) for electric
vehicles and renewable power. Tesla offerings currently involve power vehicles, household
storage battery, solar power and renewable wall panels and associated goods & services.
With a share of the market of 16% of the adaptor market and 23% of revenue for the battery
powered segment. In 2020, Tesla is listed as the greatest autonomous passenger vehicle
connector and recharger producer in the world. They built various models such as Model X,
Model S, Model Y and Model 3 which have different features, design, battery power and
style as well as many more. The different types of model help them to attract customers
towards their brand in order to build brand image and reputation which help them to
maximize performance and productivity (Behnam and Cagliano, 2019).
The sales of Tesla's electric vehicles rose in the first three months of the year, announcing a
record quarterly profit. The inquiry is one out of two decades into Tesla's car accidents. The
largest portion of Tesla's operating expenses in most quarters is selling, general,

administrative or SGA expenses, representing over 2/3 of the overall operating expenses.
R&D and research expenditure ranks 2nd and accounts for about 1/3 of net running costs.
SWOT analysis
A strategy is to evaluate the company four aspects. A SWOT analysis will aid them in
identifying areas that work good in your market. These fields are the key performance drivers
and their strategic advantages for the market. SWOT analysis of Tesla Inc. is mentioned
below:
Strength
 Tesla Inc. has luxury vehicle market
as they innovate their products in
order to meet the needs and demand
of customers.
 They have large market share from
their competitors.
 Selected organisation has strong sales
in the market in order to attract
investors to invest (Bratton, 2020).
Weakness
 The batteries of the electric vehicles
in Tesla come from one source as
they have hurdle of the limited
supply.
 As they are biggest innovators but
they have no proper customer service.
 Tesla provides luxury cars which is
the drawback as the average
customers cannot buy the products.
Opportunities
 Selected organisation target large
amount of customers in all over the
country which leads to increase
profitability.
 They can maximize their sales and
revenue by reaching average people
and manufacture as per their price
range.
Threat
 The main challenge is their
competitors.
 When there is an unfavourable
regulation then it impacts their
business.
PEST analysis: A study by PESTLE is also required to find a wide range of facts. It allows a
company to identify external factors which might affect organisational decision-making. By
considering such external variables, the opportunity is maximised and risks to the enterprise