Strategic Management Strategies at Tesla Inc.

Running head: TESLA INC.
Tesla Inc.
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Executive Summary:
This report analyses the strategic management strategies that are in place at Tesla Inc.
The first part of the report is giving an overview of the company and the growth that it has
experienced since its inception, and the growth in awareness and popularity of their products.
Then the company’s mission and vision statement are analysed to show how they are lining
these statements with their organizational structure and procedures. The sections after the
introduction focus on the different stakeholder groups of the Tesla and how they are being
treated by the company. Finally, the last section is an attempt at making recommendations for
company in order to better their outlook in the future.

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Table of Contents
1. Introduction to Tesla Motors:.............................................................................................3
1.1. Tesla’s Mission and Vision Statement:.......................................................................4
2. Tesla Stakeholder View of the Organization:.....................................................................5
3. Analysis of Stakeholders:...................................................................................................5
4. Stakeholder Category Identification:..................................................................................7
5. Recommendation:.............................................................................................................10
References:...............................................................................................................................13

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1. Introduction to Tesla Motors:
Tesla Inc., which was formerly Tesla Motors, is an America-based electric automobile
manufacturer (Chen and Perez 2018). The company was found in 1993 by a pair of American
entrepreneurs called Martin Eberhard and Marc Tarpenning. The name is inspired by the
Serbian-American engineer, inventor and a futurist Nikola Tesla. The company was formed
with the goal to develop and eventually manufacture electrically operated sports cars.
Funding for the company came from various sources and most significant of which came
from Elon Musk - $30 million for the new venture (Tesla 2019). He was then appointed as
the chairman of the company in the beginning of 2004. Martin Eberhard resigned as the CEO
and president of technology in 2007, he then joined the advisory board of the company. In
2008, however, news had spread that Eberhard had left the company but was still a major
shareholder of the company. It was then that Elon Musk took over the empty position as CEO
of Tesla Inc.
Tesla released their first car in the year 2008 which was the completely electric car called
the Roadster. Before being released for the public, the company had tested the car and it
proved to be able to run at a stretch of 245 miles (394 km) in just one charge. This range was
unprecedented in all the existing electric cars in the market, giving Tesla Inc. the edge over
everyone in the market competition (Tesla 2019). Tesla stopped the production of the
Roadster and Elon Musk had started working on the Model X which was meant to be a
“crossover” vehicle that successfully encompasses the qualities of a sports car while being
built on a car chassis. A unique feature of these cars are the usage of gull-wing doors instead
of the traditional doors, giving it an edge of being a luxury car. Tesla had already anticipated
the excitement for their cars and that is why they started taking reservations for the purchase
of this car without announcing the prices.