Impact of Automation on Employment
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This assignment delves into the multifaceted impact of automation on the labor market. It examines various sources, including research papers and news articles, to analyze how automation is affecting different industries and potentially displacing jobs. The analysis considers factors like technological advancements, productivity changes, and government policies. Additionally, the assignment explores potential solutions and strategies for mitigating the negative consequences of automation on employment.
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Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Description of company..............................................................................................................1
Literature Review........................................................................................................................2
Scenario development.................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Description of company..............................................................................................................1
Literature Review........................................................................................................................2
Scenario development.................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4
INTRODUCTION
Present study will be based on Tesla Motors which is a technology firm and working as
an independent auto maker. Current assignment will give description of the company, its
products and services. Furthermore, impact of technological advancement on unemployment rate
will be discussed in this study. Numerical data in this respect will be presented in this report.
MAIN BODY
Description of company
Tesla Motors was established in the year 2003 with the intention to prove that electric
vehicles can be better and quick as compare to gasoline cars. It is specialized in making electric
cars, energy storage (Jenn, Azevedo and Ferreira, 2013). In the year 2008 Tesla has launched its
first electric car Roadster. The main success of maker was that this electric car was able to run
245 miles on a single charge. Its performance was good as compare to gasoline cars. This
lightweight care body was manufactured by using carbon fibre. In manufacturing of this auto
mobile part engineers have not used internal combustion engine. Tesla has signed production
contract in the 2005 with Lotus. Tesla has delivered electric cars to consumers at affordable rates
(Johnston and Marshall, 2016).
In the year 2014 revenue generated by Tesla motors was US$3.198 billion. Operating
income of the company was 186.7 million, net income was 294.0. In the year 2014 its total assets
was 5.849 billion whereas total equity was 911.7 million. Currently company has employed
12000 employees. At the time of hiring of candidates it generally looks upon the candidates
those who have interest in electric vehicles and have necessary skills to work in auto mobile
company (Quatraro and Vivarelli, 2014).
Products, services and customers
Tesla Motors offers electric vehicles and Tesla energy vehicles. It offers sedans and sport
cars to consumers that want to drive safe and fast (Sovacool, Noel and Orsato, 2017). Cited firm
is producing Tesla Energy Products which is part of stationary energy storage products. It is
generally used in commercial vehicles. Cited firm applies model S in its car manufacturing
process (Brotchie and et.al, 2017). Due to implementation of this model it has received positive
reviews from consumers.
Tesla provides replacement services, repairing services to its consumers if any fault occur
in the car. It has many service centres in many locations those who provide three free services to
1
Present study will be based on Tesla Motors which is a technology firm and working as
an independent auto maker. Current assignment will give description of the company, its
products and services. Furthermore, impact of technological advancement on unemployment rate
will be discussed in this study. Numerical data in this respect will be presented in this report.
MAIN BODY
Description of company
Tesla Motors was established in the year 2003 with the intention to prove that electric
vehicles can be better and quick as compare to gasoline cars. It is specialized in making electric
cars, energy storage (Jenn, Azevedo and Ferreira, 2013). In the year 2008 Tesla has launched its
first electric car Roadster. The main success of maker was that this electric car was able to run
245 miles on a single charge. Its performance was good as compare to gasoline cars. This
lightweight care body was manufactured by using carbon fibre. In manufacturing of this auto
mobile part engineers have not used internal combustion engine. Tesla has signed production
contract in the 2005 with Lotus. Tesla has delivered electric cars to consumers at affordable rates
(Johnston and Marshall, 2016).
In the year 2014 revenue generated by Tesla motors was US$3.198 billion. Operating
income of the company was 186.7 million, net income was 294.0. In the year 2014 its total assets
was 5.849 billion whereas total equity was 911.7 million. Currently company has employed
12000 employees. At the time of hiring of candidates it generally looks upon the candidates
those who have interest in electric vehicles and have necessary skills to work in auto mobile
company (Quatraro and Vivarelli, 2014).
Products, services and customers
Tesla Motors offers electric vehicles and Tesla energy vehicles. It offers sedans and sport
cars to consumers that want to drive safe and fast (Sovacool, Noel and Orsato, 2017). Cited firm
is producing Tesla Energy Products which is part of stationary energy storage products. It is
generally used in commercial vehicles. Cited firm applies model S in its car manufacturing
process (Brotchie and et.al, 2017). Due to implementation of this model it has received positive
reviews from consumers.
Tesla provides replacement services, repairing services to its consumers if any fault occur
in the car. It has many service centres in many locations those who provide three free services to
1
its potential buyers (Schwab, 2017). Services of company include pay bill through online system,
customization of subscription, review subscription, get chance to win gift, get tailored services
and suport from customer service executive.
Its customers are youngsters and middle income class people those who are unable to buy
expensive cars of Toyota and other companies. Fuel is the major concern for these clients this,
company targets this customers so that they can travel in electric luxurious cars (Coppola and
Morisio, 2016).
Literature Review
As per the view of Carl Benedikt Frey† and Michael A. Osborne‡, (2013) increasing
technologies is declining manufacturing employment due to which current rate of employment
has been decreased to great extent. In many of the firm auto mobile companies are taking support
of high technologies due to which they do not require much staff. That is cost effective for the
firm but affect income sources of population to great extent. Brotchie and et.al, (2017) argued
that there has been structural shifting in the labour market because middle income labours have
been nor working as low income service occupation. It has been described that technological
innovation is increasing and development in sophisticated software is affecting labours market
negatively.
Johnston and Marshall, (2016) has pointed the thing that there are some works which are
manual and cognitive but still some works are in the organization for which company's are
required skilled employees because these task can not be completed by any machine. These are
such as driving, legal writing, medical diagnoses, selling etc. According to Carl Benedikt Frey†
and Michael A. Osborne‡, (2013) auto mobile industry has been grown well as compare to
previous year, there has been 6.8% growth in this industry. It is because of implementation of
advance technologies. Due to this, companies are terminating their staff so that they can reduce
cost and can apply these machines in the workplace (Carlson, 2013). This helps in increasing
production and supports in manufacturing a correct model or car which can not produce by
engineers because they may make mistakes.
According to Schwab, (2017) improvement of sensing technology has improved data
sourcing which has helped in rendering many tasks computable. It is facet that most of the auto
mobile firm fit these sensors in their auto mobile products in order to improve supply chain
management and identifying or measure moisture in this field. Jenn, Azevedo and Ferreira,
2
customization of subscription, review subscription, get chance to win gift, get tailored services
and suport from customer service executive.
Its customers are youngsters and middle income class people those who are unable to buy
expensive cars of Toyota and other companies. Fuel is the major concern for these clients this,
company targets this customers so that they can travel in electric luxurious cars (Coppola and
Morisio, 2016).
Literature Review
As per the view of Carl Benedikt Frey† and Michael A. Osborne‡, (2013) increasing
technologies is declining manufacturing employment due to which current rate of employment
has been decreased to great extent. In many of the firm auto mobile companies are taking support
of high technologies due to which they do not require much staff. That is cost effective for the
firm but affect income sources of population to great extent. Brotchie and et.al, (2017) argued
that there has been structural shifting in the labour market because middle income labours have
been nor working as low income service occupation. It has been described that technological
innovation is increasing and development in sophisticated software is affecting labours market
negatively.
Johnston and Marshall, (2016) has pointed the thing that there are some works which are
manual and cognitive but still some works are in the organization for which company's are
required skilled employees because these task can not be completed by any machine. These are
such as driving, legal writing, medical diagnoses, selling etc. According to Carl Benedikt Frey†
and Michael A. Osborne‡, (2013) auto mobile industry has been grown well as compare to
previous year, there has been 6.8% growth in this industry. It is because of implementation of
advance technologies. Due to this, companies are terminating their staff so that they can reduce
cost and can apply these machines in the workplace (Carlson, 2013). This helps in increasing
production and supports in manufacturing a correct model or car which can not produce by
engineers because they may make mistakes.
According to Schwab, (2017) improvement of sensing technology has improved data
sourcing which has helped in rendering many tasks computable. It is facet that most of the auto
mobile firm fit these sensors in their auto mobile products in order to improve supply chain
management and identifying or measure moisture in this field. Jenn, Azevedo and Ferreira,
2
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(2013) stated that many of the people those who are technically sound have got good
employment opportunities due to advancement in technologies in the manufacturing field. Now
employees are bale to perform their duties well and minimizing errors. As per the view of Carl
Benedikt Frey† and Michael A. Osborne‡, (2013) improve sensor technologies and use of robots
in the auto-mobile companies assist in producing high quality goods and increasing reliability
which can not be achieved by human labour.
As per the view of Brotchie and et.al, (2017) technological advancement is helpful in
decreasing cost of robotics. Statical figures show that prices of robot has been declined by 10%
annually which has helped the firms in improving their net profit. As condition of China shows
that employers are paying more attention on increasing incentivised for substitute robots (Reid,
Reid and Rich, 2017). Sales of robots by china has been grown by 50% in 2011 as compare to
previous years and its is expectation of forecaster that it will grow even more in coming future.
Coppola and Morisio, (2016) argued that as robots selling is increasing with the same speed
companies are terminating their employees those who are not able to handle technologies.
Robots are able to perform tasks of more than 10 persons in such condition they terminate their
existing non productive staff in order to cut cost and improve efficiency level of products and
services.
Scenario Development
In accordance with the findings made by Frey and Osborne’s they focused on examining
susceptible jobs are to computerisation. In this context, they started by estimating the
profitability of computerisation for 702 detailed occupations with the help of Gaussian process
classifier. Expected impact was identified of future computerisation on US labour market.
Analysis was made to determine the risk and relationship between occupation profitability. From
the findings, it was identified that about 47% of the job were at risk of US.
With the introduction of software, automation and robots it obvious to the people working in aut
omotive manufacturing that they can replace people in coming time. Many of the critics have clai
med that instead of creating more job opportunities it's destroying job at much faster rate which l
ead to stagnation of median income and growth of inequality in United State.
3
employment opportunities due to advancement in technologies in the manufacturing field. Now
employees are bale to perform their duties well and minimizing errors. As per the view of Carl
Benedikt Frey† and Michael A. Osborne‡, (2013) improve sensor technologies and use of robots
in the auto-mobile companies assist in producing high quality goods and increasing reliability
which can not be achieved by human labour.
As per the view of Brotchie and et.al, (2017) technological advancement is helpful in
decreasing cost of robotics. Statical figures show that prices of robot has been declined by 10%
annually which has helped the firms in improving their net profit. As condition of China shows
that employers are paying more attention on increasing incentivised for substitute robots (Reid,
Reid and Rich, 2017). Sales of robots by china has been grown by 50% in 2011 as compare to
previous years and its is expectation of forecaster that it will grow even more in coming future.
Coppola and Morisio, (2016) argued that as robots selling is increasing with the same speed
companies are terminating their employees those who are not able to handle technologies.
Robots are able to perform tasks of more than 10 persons in such condition they terminate their
existing non productive staff in order to cut cost and improve efficiency level of products and
services.
Scenario Development
In accordance with the findings made by Frey and Osborne’s they focused on examining
susceptible jobs are to computerisation. In this context, they started by estimating the
profitability of computerisation for 702 detailed occupations with the help of Gaussian process
classifier. Expected impact was identified of future computerisation on US labour market.
Analysis was made to determine the risk and relationship between occupation profitability. From
the findings, it was identified that about 47% of the job were at risk of US.
With the introduction of software, automation and robots it obvious to the people working in aut
omotive manufacturing that they can replace people in coming time. Many of the critics have clai
med that instead of creating more job opportunities it's destroying job at much faster rate which l
ead to stagnation of median income and growth of inequality in United State.
3
Illustration 1: Illustration 1: (Graph showing US productivity and employment ( Technology and
job. 2013.)
§
The chart above shows that US productivity and employment. The separate lines in graph represe
nt the productivity of nation along with the employment in US. After the world war II the two lin
es are moving closely to each other the increase in job is correspondence with the increase in pro
ductivity (Wang and Miao,
2015). It clear from above graph that business was generating more value from their workers. Th
e country as whole was becoming more reaches which also fuelled various economic activity that
created the job opportunity for people. By 2011 significant gap has been noticed between this tw
o that shows that their was the continuous growth of productivity but their was not much change
in the employment and in its enhancement. Many of the critics said that technology is the major r
eason behind the loss of employment in the States. This graph has shaken the view of many econ
omists who were asserting their faith in technology.
4
job. 2013.)
§
The chart above shows that US productivity and employment. The separate lines in graph represe
nt the productivity of nation along with the employment in US. After the world war II the two lin
es are moving closely to each other the increase in job is correspondence with the increase in pro
ductivity (Wang and Miao,
2015). It clear from above graph that business was generating more value from their workers. Th
e country as whole was becoming more reaches which also fuelled various economic activity that
created the job opportunity for people. By 2011 significant gap has been noticed between this tw
o that shows that their was the continuous growth of productivity but their was not much change
in the employment and in its enhancement. Many of the critics said that technology is the major r
eason behind the loss of employment in the States. This graph has shaken the view of many econ
omists who were asserting their faith in technology.
4
Technology in no doubt play important role in the development of nation and increasing i
ts productivity but no one can deny that it come with darker side that have impacted the growth o
f individual (Chen, Yang and Lee,
2013). In current time productivity of nation is breaking all the record and innovation in country
could not be much faster still there is falling in the median income and country have fewer job t
o offer their people.
Technology advancement is having adverse impact on the economy of firm and is elimin
ating many types of jobs in nation. The condition of people is worsening. The above chart shows
that median income of nation is continuously decreasing even if the domestic product of nation is
soaring (Cron, Baldauf and Grossenbacher,
2014). People are failing behind because technology is advancing at much faster rate.
5
Illustration 2: llustration 2: Comparision of US GDP percapita and houshold
income(Source: Technology and job. 2013.)
ts productivity but no one can deny that it come with darker side that have impacted the growth o
f individual (Chen, Yang and Lee,
2013). In current time productivity of nation is breaking all the record and innovation in country
could not be much faster still there is falling in the median income and country have fewer job t
o offer their people.
Technology advancement is having adverse impact on the economy of firm and is elimin
ating many types of jobs in nation. The condition of people is worsening. The above chart shows
that median income of nation is continuously decreasing even if the domestic product of nation is
soaring (Cron, Baldauf and Grossenbacher,
2014). People are failing behind because technology is advancing at much faster rate.
5
Illustration 2: llustration 2: Comparision of US GDP percapita and houshold
income(Source: Technology and job. 2013.)
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Illustration 3: Illustration 3: Statisitics of employed person in manufacturing in three
differenty countries. (Source: Technology and jobs 2013 )
Robot and advanced automation have been common in many types of manufactures country like
china and United state use these robots in their manufacturing work. The no. of people working i
n this manufacturing is decreasing at fast rate the below given is the grapgh that show the change
in manufacture in three leading countries.
Being a technological giant in auto mobile industry, Tesla motors work regularly to upgra
de its technical aspects in its auto mobiles (Balboni and Terho,
2016). Being on of the prior company to work upon electricity operated auto mobiles & engines,
the technical advancement in its motor technology has helped the company to improve its sales i
n the market in field of electric vehicles. The rise in the sales of company's most popular models,
model S & Model X are
Not much people agree that technology is only the reason behind this big difference but
many have accepted it to become one of the leading reason for the less employment in country
(Merk,2014). In order to overcome this situation country can invest mure in the training and educ
ation of worker. Business Corporate should also pay attention to this and should create better em
ployment opportunity for people.
6
differenty countries. (Source: Technology and jobs 2013 )
Robot and advanced automation have been common in many types of manufactures country like
china and United state use these robots in their manufacturing work. The no. of people working i
n this manufacturing is decreasing at fast rate the below given is the grapgh that show the change
in manufacture in three leading countries.
Being a technological giant in auto mobile industry, Tesla motors work regularly to upgra
de its technical aspects in its auto mobiles (Balboni and Terho,
2016). Being on of the prior company to work upon electricity operated auto mobiles & engines,
the technical advancement in its motor technology has helped the company to improve its sales i
n the market in field of electric vehicles. The rise in the sales of company's most popular models,
model S & Model X are
Not much people agree that technology is only the reason behind this big difference but
many have accepted it to become one of the leading reason for the less employment in country
(Merk,2014). In order to overcome this situation country can invest mure in the training and educ
ation of worker. Business Corporate should also pay attention to this and should create better em
ployment opportunity for people.
6
CONCLUSION
From the above discussion it can be concluded that technological advancement is good
for the growth of auto mobile manufacturing firms. It supports in increasing their quality of
products and can help in minimizing errors. But these technologies affect employment rates.
After implementation of these technologies's employer do not require much staff which increases
unemployment rates to great extent.
7
From the above discussion it can be concluded that technological advancement is good
for the growth of auto mobile manufacturing firms. It supports in increasing their quality of
products and can help in minimizing errors. But these technologies affect employment rates.
After implementation of these technologies's employer do not require much staff which increases
unemployment rates to great extent.
7
REFERENCES
Books and Journals
Brotchie, J. and et.al., 2017.The future of urban form: the impact of new technology. Routledge.
Coppola, R. and Morisio, M., 2016. Connected car: technologies, issues, future trends. ACM
Computing Surveys (CSUR). 49(3). pp.46.
Jenn, A., Azevedo, I. L. and Ferreira, P., 2013. The impact of federal incentives on the adoption
of hybrid electric vehicles in the United States. Energy Economics. 40. pp.936-942.
Johnston, M. W. and Marshall, G. W., 2016. Sales force management: Leadership, innovation,
technology. Routledge.
Sovacool, B. K., Noel, L. and Orsato, R. J., 2017. Stretching, embeddedness, and scripts in a
sociotechnical transition: explaining the failure of electric mobility at Better Place (2007–
2013). Technological Forecasting and Social Change, 123, pp.24-34.
Carlson, W. B., 2013. Tesla: Inventor of the electrical age. Princeton University Press.
Reid, D. A., Reid, D. A. and Rich, G. A., 2017. Examining the use of sales force management
practices. Journal of Business & Industrial Marketing, 32(7), pp.974-986.
Wang, G. and Miao, C. F., 2015. Effects of sales force market orientation on creativity,
innovation implementation, and sales performance. Journal of Business Research, 68(11),
pp.2374-2382.
Chen, C. W., Yang, H. C. and Lee, K. L., 2013. Retracted: The Relationship between Personality
Traits and Sales Force Automation Usage: A Review of Methodology. Human Factors and
Ergonomics in Manufacturing & Service Industries, 23(4), pp.294-305.
Balboni, B. and Terho, H., 2016. Outward-looking and future-oriented customer value potential
management: The sales force value appropriation role. Industrial Marketing
Management, 53, pp.181-193.
Merk, M., 2014. Luxury sales force management: strategies for winning over your brand
ambassadors. Springer.
8
Books and Journals
Brotchie, J. and et.al., 2017.The future of urban form: the impact of new technology. Routledge.
Coppola, R. and Morisio, M., 2016. Connected car: technologies, issues, future trends. ACM
Computing Surveys (CSUR). 49(3). pp.46.
Jenn, A., Azevedo, I. L. and Ferreira, P., 2013. The impact of federal incentives on the adoption
of hybrid electric vehicles in the United States. Energy Economics. 40. pp.936-942.
Johnston, M. W. and Marshall, G. W., 2016. Sales force management: Leadership, innovation,
technology. Routledge.
Sovacool, B. K., Noel, L. and Orsato, R. J., 2017. Stretching, embeddedness, and scripts in a
sociotechnical transition: explaining the failure of electric mobility at Better Place (2007–
2013). Technological Forecasting and Social Change, 123, pp.24-34.
Carlson, W. B., 2013. Tesla: Inventor of the electrical age. Princeton University Press.
Reid, D. A., Reid, D. A. and Rich, G. A., 2017. Examining the use of sales force management
practices. Journal of Business & Industrial Marketing, 32(7), pp.974-986.
Wang, G. and Miao, C. F., 2015. Effects of sales force market orientation on creativity,
innovation implementation, and sales performance. Journal of Business Research, 68(11),
pp.2374-2382.
Chen, C. W., Yang, H. C. and Lee, K. L., 2013. Retracted: The Relationship between Personality
Traits and Sales Force Automation Usage: A Review of Methodology. Human Factors and
Ergonomics in Manufacturing & Service Industries, 23(4), pp.294-305.
Balboni, B. and Terho, H., 2016. Outward-looking and future-oriented customer value potential
management: The sales force value appropriation role. Industrial Marketing
Management, 53, pp.181-193.
Merk, M., 2014. Luxury sales force management: strategies for winning over your brand
ambassadors. Springer.
8
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Cron, W. L., Baldauf, A. and Grossenbacher, S., 2014. The strategic role of the sales force:
perceptions of senior sales executives. Journal of the Academy of Marketing
Science, 42(5), pp.471-489.
Sovacool, Noel and Orsato, 2017Carlson, 2013Reid, Reid and Rich, 2017Wang and Miao,
2015Chen, Yang and Lee, 2013Balboni and Terho, 2016Merk, 2014Cron, Baldauf and
Grossenbacher, 2014
Quatraro, F. and Vivarelli, M., 2014. Drivers of entrepreneurship and post-entry performance of
newborn firms in developing countries. The World Bank Research Observer. 30(2).
pp.277-305.
Schwab, K., 2017. The fourth industrial revolution. Crown Business.
Online
Carl Benedikt Frey† and Michael A. Osborne‡, 2013. The future of employment: how
susceptible are jobs to computerisation?, 2013. [Online] Available through:
<https://www.oxfordmartin.ox.ac.uk/downloads/academic/The_Future_of_Employment.pd
f>.
David rotman Technology and jobs 2013 https://www.technologyreview.com/s/515926/how-
technology-is-destroying-jobs/
Musk: Tesla Motors, Inc. Stock Is Not for Shortsighted Investors. 2014. [Online] Available
through:< https://www.fool.com/investing/general/2014/06/10/musk-tesla-motors-inc-stock-is-
not-for-shortsighte.aspx>.
As Tesla's Revenues Accelerate, What Can Investors Expect Going Forward?. 2017. [Online]
Available through:<https://seekingalpha.com/article/4066401-teslas-revenues-accelerate-can-
investors-expect-going-forward>.
9
perceptions of senior sales executives. Journal of the Academy of Marketing
Science, 42(5), pp.471-489.
Sovacool, Noel and Orsato, 2017Carlson, 2013Reid, Reid and Rich, 2017Wang and Miao,
2015Chen, Yang and Lee, 2013Balboni and Terho, 2016Merk, 2014Cron, Baldauf and
Grossenbacher, 2014
Quatraro, F. and Vivarelli, M., 2014. Drivers of entrepreneurship and post-entry performance of
newborn firms in developing countries. The World Bank Research Observer. 30(2).
pp.277-305.
Schwab, K., 2017. The fourth industrial revolution. Crown Business.
Online
Carl Benedikt Frey† and Michael A. Osborne‡, 2013. The future of employment: how
susceptible are jobs to computerisation?, 2013. [Online] Available through:
<https://www.oxfordmartin.ox.ac.uk/downloads/academic/The_Future_of_Employment.pd
f>.
David rotman Technology and jobs 2013 https://www.technologyreview.com/s/515926/how-
technology-is-destroying-jobs/
Musk: Tesla Motors, Inc. Stock Is Not for Shortsighted Investors. 2014. [Online] Available
through:< https://www.fool.com/investing/general/2014/06/10/musk-tesla-motors-inc-stock-is-
not-for-shortsighte.aspx>.
As Tesla's Revenues Accelerate, What Can Investors Expect Going Forward?. 2017. [Online]
Available through:<https://seekingalpha.com/article/4066401-teslas-revenues-accelerate-can-
investors-expect-going-forward>.
9
APPENDIX 1
Figure 1: Expected market share
(Source: As Tesla's Revenues Accelerate, What Can Investors Expect Going Forward?. 2017)
Figure 2: Price % Change in 2013 and 2014
(Source: Musk: Tesla Motors, Inc. Stock Is Not for Shortsighted Investors. 2014)
10
Figure 1: Expected market share
(Source: As Tesla's Revenues Accelerate, What Can Investors Expect Going Forward?. 2017)
Figure 2: Price % Change in 2013 and 2014
(Source: Musk: Tesla Motors, Inc. Stock Is Not for Shortsighted Investors. 2014)
10
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