MANAGEMENT CONSULTANCY AT TESLA

Running head: MANAGEMENT CONSULTANCY AT TESLA
MANAGEMENT CONSULTANCY AT TESLA
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Executive summary
The purpose of the study is to observe the current financial position of Tesla and give proper
strategy based on the analysis. SWOT analysis is used to understand strengths, weaknesses,
opportunities and threats of the organization. It can be perceived that Tesla was going
through production and demand issue and leadership, logistic and profitability was present in
the previous years. In addition, it can be observed that developing countries are investing in
green zone. Tesla should reduce the price of its products by proper market research. With the
help of governmental regulations, Tesla can improve its production of automotive products.
Tesla should focus more on battery technology and less on electric cars by proper research
and development. Expansion strategies should be used to improve operational efficiency of
Tesla.

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Table of Contents
TESLA INC...............................................................................................................................3
Resources...............................................................................................................................3
Business model.......................................................................................................................3
Core competencies.................................................................................................................4
Mission and vision.................................................................................................................5
Organisational culture............................................................................................................5
Problems at Tesla.......................................................................................................................5
Production and demand balance.............................................................................................5
Competition............................................................................................................................6
Profitability issue...................................................................................................................7
Logistic issues........................................................................................................................7
Leadership issues.......................................................................................................................8
Factors affecting business growth..............................................................................................8
Supporting and blocking forces.............................................................................................8
Analytical model......................................................................................................................12
SWOT Analysis-..................................................................................................................12
Recommendation of strategy....................................................................................................14
Conclusion................................................................................................................................16
References................................................................................................................................17

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TESLA INC
Founded in 2003 by two engineer Martin Eberhard and Marc Tarpening and funded
by Elon Mask, Tesla is an American electric vehicle manufacturing company, which focuses
on building electric vehicles along with battery energy storage and other solar products. Tesla
owns several manufacturing plants in California, New York and China. The headquarter of
Tesla is situated at Palo Alto, CA Tesla designs, manufactures, designs and sells high
performance passenger electric vehicles to the market (Hettich and Müller-Stewens 2017).
Tesla serves their customers worldwide through the outlets. Tesla operates through two
different segments, the automotive segments and energy generation and storage. The
automotive segments develops and manufactures cars wherein the energy generation and
storage segment is focused on the design, manufacture and sale of stationary energy storage
and solar energy products (Voigt, Buliga, and Michl 2017). The energy storage products can
be used in residency, commercial sectors and utility sites. The market capacity of tesla is
worth over 78.8 billion dollars. Tesla’s market is huge and it is leading electric car
manufacturer in the world. Tesla reached $100 billion market capitalisation in 2020, which is
three times than its competitor, Ford.
Resources
As per recent report, Elon mask said that Tesla builds electric cars therefore the need
huge amount of lithium ion cells to power these cars. To secure the resources, Tesla is
building several factories in association with Panasonic to meet their need of lithium ion cells
(Chen and Perez 2018).
Business model
Tesla is an independent car manufacturer and it adhere business to business model
where it encourages partnership with other companies and also business to consumer model
by offering luxury, family and market vehicles to the industry (Wieland, Hartmann, and

MANAGEMENT CONSULTANCY AT TESLA4
Vargo 2017). Tesla try to serve their customers with best quality electric cars. Tesla have
cars for all price range. Tesla inc is vertically integrated therefore it runs and operates several
manufacturing plants where the cars are manufactured some factories to produce battery
packs and stationary storage system. These products are sold through online and physical
stores. Tesla provides advanced features to the electric cars and also provides solar energy
system for residential and commercial purpose (Bruijl 2017).
Fig 1: Direct Distribution Model
Core competencies
Being a large electronic car manufacturer, it is natural to have competitors in the
global market. Tesla is no exception to this. Tesla has many competitors in the market, as
they become the most successful company over the years (Thomas and Maine 2019). Tesla
primarily competed with General Motors, Toyota, BMW-I series, Mercedes and Ford.
Despite Tesla had losses during 2011 to 2018, they successfully gained the market share of
the company eventually.

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Mission and vision
The mission and vision of tesla is to accelerate the world’s transition from
hydrocarbon economy towards the solar energy economy. The primary objective of Tesla is
to provide electric vehicle that will have zero emission electricity, outperforming gasoline-
powered cars in driving experience and efficiency. Tesla is producing more energy efficient
and affordable vehicles to the global market so that general peoples can afford these cars.
Tesla is focusing to server their customers with best technology and innovative vehicles
(Sharma 2016).
Organisational culture
Tesla always motivates its employees to develop profitable solutions for the
organisation. The culture creates human competence necessary for innovate products in the
global market. Tesla has innovative problem-solving organisational culture, which involves
employee workability to create opportunities for the organisation and innovate new product,
which keep them ahead in the market than their competitors (Rimmer 2018). Tesla always
encourages ideas and solutions from their employees in developing advanced electric
vehicles. Tesla unifies its employees into a team that works for the improvement of the
business. Tesla empowers its employees to search for ideal solutions that will make the
business stand firmly in the global market.
Problems at Tesla
Despite of the successful market capitalization, Tesla has several problems, which are
affecting its market and revenue. Tesla is facing challenges in the market, which is a concern
for the CEO of the company. The problems are identified and noted below.