Tesla Motors: Accelerating the World's Transition to Sustainable Energy

Tesla Motors was founded in 2003 with the aim of developing electric cars that did not use fuels. The company has over the years tried to increase the production of electric cars by increasing factory capacity and sharing technology with other car manufactures. Tesla's vision is to create the most compelling car company of the 21st century by driving the world's transition to electric vehicles. The mission statement is to accelerate the world's transition to sustainable energy. Tesla faces challenges such as competition from other car manufacturers and difficulty in manufacturing sustainable vehicles for the mass market. The stakeholder group includes employees, suppliers, lenders, and customers.

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Executive summary
Tesla Motors was founded in the year 2003 by the Silicon Valley engineers. Tesla was formed
with the aim of developing electric cars that did not use fuels. The company was able to launch
the first model in the year 2008. The model was called Tesla Roadster and had no equal due to
the use of sustainable energy. Tesla roadster had incredible power and no emissions thus unlike
the fuel powered vehicles. The company has over the years tried to increase the production of
electric cars by increasing factory capacity and sharing technology with other car manufactures.
The company intends to radically transform the motor industry from fuel reliance on electricity.
Tesla’s vision is to create the most compelling car company of the 21st century by driving the
world’s transition to electric vehicles. The vision means that the company focusses on moving
away from the use of fuels such as petrol, gas, and diesel to fuel vehicles. The Tesla car models
will use renewable energy to prevent harmful emissions to the air. On the other hand, the
company intends to help other car manufacturing companies to move towards the development
of electric vehicles. Tesla intends to assist the companies with the expertise and resources that
will aid a smooth transition from fuel to electric vehicles.
The mission statement is to accelerate the world’s transition to sustainable energy. The statement
means that the company intends to exploit the market opportunities for renewable energy.
Therefore, Tesla will accelerate the fast movement to sustainable energy by providing the
necessary resources.
Tesla Company has recently developed the first vehicle using sustainable energy. The vehicle
has a higher performance and efficiency, unlike the fuel powered vehicles. Additionally, the
company has come up with ways of ensuring that other vehicle manufacturers adopt sustainable
energy technology.

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However, the company faces various challenges such as competition from other car
manufacturers who do not believe in the possibility of using electricity to power vehicles. The
other companies pose difficulty to Tesla’s move to ensure that vehicles use sustainable energy.
Additionally, Tesla faces difficulty in manufacturing sustainable vehicles for the mass market.
Currently, Tesla has only produced in low volumes and at high prices, which hurts the
transformation since the mass market requires cheap vehicles.
Tesla Company has a stakeholder group made up of employees, suppliers, lender, and customers.
The employees provide the expertise to develop the vehicles. The suppliers deliver the necessary
raw materials to develop the vehicles while the customers buy the end product. Finally, the
lenders provide financing for the company in terms of shares and loans. The various shareholders
have different characteristics that Tesla considers during the interactions.

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Table of Contents
Executive summary.....................................................................................................................................1
Introduction to Tesla motors........................................................................................................................4
Tesla motors............................................................................................................................................5
Vision..................................................................................................................................................5
Mission................................................................................................................................................5
Recent developments...........................................................................................................................5
Challenges...........................................................................................................................................6
Industry trends.........................................................................................................................................7
Autonomous vehicles..........................................................................................................................7
3D printing of vehicles........................................................................................................................7
Sustainable vehicles.............................................................................................................................7
Stakeholder view model..............................................................................................................................8
Stakeholder description...........................................................................................................................8
Customers............................................................................................................................................9
Lenders and investors..........................................................................................................................9
Employees...........................................................................................................................................9
Stakeholder analysis..................................................................................................................................10
Silicon Valley engineers........................................................................................................................10
Shareholders..........................................................................................................................................10
The high class market group..................................................................................................................10
Panasonic...............................................................................................................................................10
The generic strategic program for the stakeholders...................................................................................11
Silicon Valley engineers....................................................................................................................11
Panasonic suppliers............................................................................................................................11
The rich car buyers............................................................................................................................11
The shareholders................................................................................................................................12
Recommendations for specific management programs..............................................................................12
Bibliography..............................................................................................................................................13

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Introduction to Tesla motors
Tesla Company deals with the production of sustainable vehicles with the aim of accelerating the
shift to using electric vehicles. Tesla’s Company CEO Elon Musk emphasizes the need to move
towards sustainable energy due to the environmental benefits of reduced harmful emissions
(Anon, 2018). Tesla was formed in Silicon Valley to explore the ability to use electric vehicles.
The company has employed vast expertise and resources to come up with a powerful electric car
thus proving the possibility of shifting from the use of vehicles. The other car manufacturers had
doubted the possibility of the shift but with Tesla developing the first electric car, more
companies now consider developing the vehicles (Collard-Wexler, 2015).
Tesla Company currently targets a small market made up of the rich since the vehicles sell at a
high cost (Randewich, 2018). However, the company associates the high cost to the increased
cost of production incurred to develop one unit. Therefore, the company can only target the few
rich customers who can afford to pay the price. However, the company has employed experts to
come up with simpler technology to manufacture the vehicles in masses and at low costs. The
success of the mass production technology will enable the company to sell the products to the
low earning customers who form the largest percentage of the market share (Aravind, 2015).
The CEO Elon Musk states that the company intends to enable other car manufacturing
companies to move towards developing electric cars. Therefore, the company will share
resources and expertise with the other industry players. The company aims at ensuring that the
world shifts to electric cars within the next ten years (Govil, 2013).

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Tesla Motors
Vision
Tesla’s vision is to create the most compelling car company of the 21st century by driving the
world’s transition to electric vehicles (Anon, 2018). The vision shows Tesla’s intention to move
towards sustainable energy and assist other companies to do the same. Tesla wishes to share the
technology with other car manufacturing companies to ensure that the world moves towards the
use of sustainable energy.
Mission
Tesla’s mission is to accelerate the world’s transition to sustainable energy (Anon, 2018). The
acceleration happens by manufacturing electric cars for the mass markets. The company wishes
that all the car users and manufacturers shift towards electric cars to reduce the environmental
pollution caused by fuel emissions. The company intends to share the technology with other
companies to eliminate the reluctance posed by manufacturers who believe that electric cars will
not succeed.
Recent developments
Tesla Company has recently developed the most compelling electric car (Hope, 2015). The
electric model has a high horsepower and competes with the likes of BMW, Mercedes, and Audi.
Tesla developed models S and X that targeted the luxury market. However, the company has
come up with model 3, which costs less compared to the previous models. Tesla seeks to achieve
zero emissions in the future of motor vehicles.
Additionally, Tesla has succeeded at acting as the catalyst for the shift towards sustainable
energy (Johnson, 2014). The company has installed advanced machinery and technology to
enable the successful development of electric cars. Furthermore, Tesla has motivated other

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companies to adopt sustainable technology with new that Apple Company also intends to
produce electric vehicles. The ability to motivate other companies to shift towards the
development of electric cars marks an important milestone in the achievement of Tesla
objectives (Juhari, 2018).
On the other hand, Tesla has currently employed experts to check the possibility of developing
an autonomous car. The autonomous car will not require a driver to move from one place to
another. The company has developed functioning prototypes that prove the possibility of
developing autonomous vehicles. The CEO Elon Musk reports that the autonomous vehicles
could hit the market soon after the finalization of a few details that will ensure that the vehicles
do not pose a risk by following the will of a few people (Lambert, 2018).
Challenges
Tesla Company faces various challenges in the market including resistance by other car
manufacturers to adopt the electric vehicles (Marr, 2018). Most of the big car manufacturers such
as BMW does not believe in the feasibility of the electric car. The reluctant companies argue that
electric cars will require high production and maintenance costs. Therefore, Tesla faces a
difficulty in initiating a mass movement towards sustainable energy.
On the other hand, Tesla faces the challenge of inadequate resources to engage in mass
production and sell cheaply (Infoentrepreneurs.org, 2018). The currently available technology
only allows Tesla to produce few units at very high costs of production. Therefore, Tesla only
satisfies the few rich people in the market since the mass low-income earners cannot afford the
vehicles. The high cost of the products scares away potential customers thus posing a challenge
to the objective of shifting towards sustainable energy.

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Furthermore, Tesla faces the challenge of few charging zones for the vehicles. The vehicles will
require charging after covering the limited miles, which takes longer compared to fueling.
Therefore, the people using the vehicles could end up spending more time on the road. The
company has not come up with a quick way of charging the vehicles, which has resulted in the
customers preferring the fuel powered vehicles. Additionally, only a few charging stations exists
meaning that the electric car owners could face problems when the car depletes charge in zones
without the charging spots.
Industry trends
Autonomous vehicles
The motor vehicle industry intends to move towards autonomous vehicles with successful
prototypes already developed (Technavio, 2018). The prototypes will undergo various tests to
establish safety and durability after which mass production will begin. The autonomous vehicles
will provide additional comfort to the passengers, reduce car accidents and manage traffic better.
The researchers believe that autonomous vehicles will provide an exciting experience to the
users.
3D printing of vehicles
Various car manufacturers have developed prototypes of 3D printed cars and could hit the
market sooner than expected (Technavio, 2018). The 3D printing of the vehicles has benefits
such as low cost of production and reduced manufacturing time. The 3D printing has
experienced more investors over time meaning that the project could face success within a short
time.

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Sustainable vehicles
The sustainable vehicles will use clean energy such as biogas and solar energy to power the
engines (Technavio, 2018). The vehicles will not result in harmful emissions to the atmosphere
like the fuel powered engines. The car manufacturing companies have joined the move to
sustainable cars. Therefore, the cars could hit the market very soon due to the dedication and
investments put into the clean energy venture
Stakeholder view model
Stakeholder description
Tesla suppliers provide various resources that enable the development of the vehicles (Talley,
2016). The major supplier of batteries for the automotive includes Panasonic. Tesla has chosen
Panasonic due to the ability to supply high-quality products. Panasonic has signed a long-term
TESLA
MOTORS
Employees
Suppliers
Lenders
and
investors
Customers

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contract with Tesla with the promise of supplying high-quality products at affordable prices.
Other suppliers include AGC automotive who supply windshields while fisher dynamics supply
powers seats (Maverick, 2018).
Customers
Tesla has identified the customers as the tech-savvy business executives and entrepreneurs who
live in the city (Park, 2014). The customers have a passion for new technology and love green
energy. Additionally, most of the customers have much wealth and tend to adopt new
technology early. The customers mostly belong to the upper-class group of the market. The
largest percentage of the customers comprises of the males with females taking up a smaller
percentage (Zucchi, 2018).
Lenders and investors
Tesla relies on borrowings and the sale of shares through the securities exchange (Juhari, 2018).
Tesla allows the public to subscribe to the shares at the market price. The ability of Tesla to
generate profits over the years has attracted many shareholders from the public. However, the
CEO Elon Musk continues to hold the largest percentage of the company share. The borrowings
come from the banks such as Goldman Sachs, Morgan Stanley, Morgan Chase and Bank of
Montreal (Juhari, 2018).
Employees
Tesla employees include a mixture of car industry specialists and Silicon Valley engineers who
come up with innovative ideas (Sharkey, 2014). Additionally, the employees include learners
from other car manufacturers who want to get further insight into the Tesla technology. The
employees ensure that the company stays ahead of the competition with new inventions that
change the operations in the car manufacturing industry.

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Stakeholder analysis
Silicon Valley engineers
The Silicon Valley engineers belong to the employee category due to the provision of human
resource necessary for running the company (Lambert, 2018). The Silicon Valley engineers
portray the behavior of hard work with reports that some of the persons sleep at work for few
hours before resuming to work. The engineers work 24/7 with few breaks in between the duties.
Additionally, the engineers come up with solutions to problems and superior ideas compared to
the other employees. The ideas have put Tesla above the other companies in the industry. The
engineers work with the motive of ensuring that Tesla stays ahead of the competition with
revolutionary discoveries.
Shareholders
The shareholders belong to the lenders and investors category. The main shareholder includes
Elon Musk the CEO of the company (Anon, 2018). Elon Musk provides leadership and sets an
environment of hard work in the company. Elon Musk aims at ensuring that the company
continues to generate profits, which increase the share earnings (Hope, 2015).
The high class market group
The high-class includes the rich people looking for luxurious cars that stand out in the market
(Zucchi, 2018). The high-class group tends to adopt new technology early and pay high prices
for the cars. The group’s motivation includes the need to maintain a high standard in the society.
Panasonic
Panasonic belongs to the supplier category. The company delivers the batteries that make the
automotive (Maverick, 2018). Panasonic delivers high-quality products at affordable prices as

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agreed with Tesla in the supply contract. The motive for supplying high-quality at low prices
includes the need to maintain long-term relations with Tesla.
The generic strategic program for the stakeholders
Silicon Valley engineers
The Silicon Valley engineers fall under the employee category of stakeholders (Sikavica, 2018).
The engineers require management through the swing program due to the level of importance
and risk posed by the group. The engineers play an important role in ensuring that the company
stays ahead of the competition with new revolutionary ideas. However, the group could pose
challenges in the case of sabotage or moving to other competing organization. Therefore, Tesla
should collaborate with the group to ensure that only positive results arise from the relationship.
Panasonic suppliers
Panasonic suppliers belong to the supplier group of stakeholders (Sikavica, 2018). The group
requires management through the hold strategy, which requires monitoring the changes in
behavior and position. The hold strategy will enable Tesla to identify whether Panasonic still
upholds the quality standards stated in the contract.
The rich car buyers
The group belongs to the customer class of stakeholders who buy the vehicles produced by the
company (Shaftoe, 2018). The group requires Tesla to apply the defensive strategy, which means
fending off competition from taking away the market share. The successful implementation of
the strategy requires Tesla to maintain the production of high-quality and sustainable cars.
The shareholders
The shareholders belong to the lenders and investors group. Tesla should manage the
shareholders using the hold strategy. The hold strategy requires Tesla to monitor the

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shareholder’s behavior and change of attitudes towards financially supporting the company
projects (Kennon, 2018).
Recommendations for specific management programs
The best generic program for the customers includes the defensive strategy (Talley, 2016). The
strategy requires Tesla to fend off the competition targeting the market share. The customers
play an important role in the successful running of the company, which calls for protection from
competitors. Tesla can protect the customers by employing aggressive marketing strategies and
producing high technology products.
The employees require the swing strategy to allow a relationship based on mutual respect
(Talley, 2016). The swing strategy calls for collaboration with the employees to ensure
prolonged relations. The collaboration includes providing the required machinery and finances to
smoothen the operations. The swing strategy plays an important role in maintaining a group of
engineers who come up with revolutionary ideas in the car manufacturing industry.
The lenders and investors require the hold program to ensure that Tesla understands the behavior
of financers (Sharkey, 2014). The hold strategy calls for monitoring the lenders’ behavior and
developing the best terms that align with the demands. The reason for applying the hold strategy
includes the need to maintain the investors happy and satisfied with the benefits earned from
financing the company projects.
The suppliers require the hold strategy that calls for behavior and attitude monitoring to ensure
mutual understanding. The hold strategy will require Tesla to respect the terms set out in the
contract such as timely payments and early communication of the changes in battery
requirements. The reason for applying the hold strategy includes ensuring that the relationship
continues for the long-term. The suppliers play an important role in availing the resources at

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high-quality and affordable prices. Therefore, the group requires monitoring to ensure mutual
respect in the relations (Juhari, 2018).
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