Tesla's Financial Management Issues: A Problem Solving and Decision Making Approach

Problem Solving and Decision-
Making
Based on Tesla Inc.

Introduction
In this assessment, Tesla Inc. is chosen and Tesla has been facing the issue of
financial management.
Elon Musk, the co-founder of Tesla is considered responsible for the financial crunch
of the organisation.
The purpose of the presentation is to highlight the Tesla's management issues which
have led towards a financial crisis of the organisation.
A secondary research is carried out in order to analyse Tesla's management problem
and alternative ways to find the success for Tesla are provided.

Brief Overview of Tesla
Tesla Inc. was founded in the year 2003 and it is an
American Multinational organisation based in California.
Tesla Inc. is known for manufacturing electric vehicles,
solar panel and a lithium-ion battery.
The CEO of the organisation is Elon Musk and Tesla Inc. is
famous for offering electric cars at an affordable price.
Production output of Tesla Inc. is 101,312 till the year 2017
and revenue of the organisation touched US$11.75 billion.
Tesla Inc. has been enjoying various types of State subsidy
and this organisation is named after the electrical engineer
Nikola Tesla.
The mission statement of Tesla Inc. is to accelerate the
world's transition into the sustainable energy.

Identifying management problem
Tesla Inc. continues to burn through cash at the staggering rate and Tesla Inc. may run out of cash
before ending of the year 2018. Elon Musk published the balance sheet of the organisation's
financial performance and it clearly showed an ugly reality glamorous image of the organisation.
Bloomberg's report stated that Tesla is burning through $6,500 in a minute and Bloomberg's report
also stated that Tesla has not made the profit since the year 2010.
Tesla failed to meet the production target of mass-market Model 3 sedan.
1. Tesla involved in the assisted-driving feature and one of the employees died for that.
Musk entered into the public dispute because of the federal safety issue.
2. Tesla’s flying-stock has been dropped almost 27% and this 15 years old company may
lead to the bankruptcy.
3. Free cash-flow of the organisation is negative for the six consecutive quarters.
4. Tesla started its journey with only 899 employees and today it had more than 40,000
employees.