BM627 Managing Innovation: Tesla's Innovation and Performance

This report provides an overview of Tesla's innovation history, existing innovation performance, and capabilities, as well as the automotive industry's status in 2021. It discusses Tesla's journey from its inception in 2003 to becoming a leader in electric vehicle manufacturing and sustainable energy solutions. The report highlights Tesla's incremental innovations, such as the Model S with its long-range capabilities, and its impact on reducing carbon emissions. It also examines the challenges faced by the automotive industry in the UK due to the COVID-19 pandemic, including supply chain disruptions and decreased sales, while noting the increased demand for electric vehicles and Tesla's strong performance in the market. The analysis concludes by emphasizing Tesla's commitment to sustainability and its role in transforming the automotive industry through advanced technology and innovative products.

BM627 Managing
Innovation in Business

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Organization and Industry Overview-.........................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

EXECUTIVE SUMMARY
This report is based on the innovation and the performance and will discuss the innovation
history of the Tesla as it has the most fascinating history as this company has changed itself as
well as the whole automotive industry of the company. Along with this, it will also discuss the
existing performance and the capabilities of the innovation of the organization as well as the
automotive industry's status or the performance in the year 2021.
INTRODUCTION
Innovation Management is the process which involves of managing the procedures of the
innovation of the organization from the initial stage of the idea till the final stage of successfully
implementing these ideas. This includes the decisions, practices as well as the activities of
formulating and implementing the innovation strategy in the organization. Tesla company is
involved in the manufacturing of the electric vehicles for combating the harm to the environment
by the vehicles. This report will discuss the history of the Tesla company as well as the existing
innovation performance and the capabilities of the company. Further, it will discuss this industry
in the year 2021.
MAIN BODY
Organization and Industry Overview-
Company's overview:
Tesla company is known for its manufacturing the electric cars. This company was
founded in the year 2003 by the group of the engineers for proving that the electric cars are much
better, quicker than compared to the petrol cars. To achieve the goals of the sustainable energy,
Tesla company came up with the energy solutions. Tesla is considered as one of the biggest
seller for the plug in electric vehicles. The major product of the Tesla company is the electric
cars, battery energy storage, solar roof tiles, solar panels and the related products and the services
are offered to the consumers.
Tesla company has total 438 stores all around the world and the around 100 service
centres for the customers. Tesla is the public company and the logo of the Tesla company means
the cross section of the electric motors (Shevchenko, 2018).
Innovation History of company:
The history of the innovation of the Tesla company is much interesting as this company
has taken the minds of the people to the different level in the technology. The Tesla company is

named after the Nikola Tesla as the Serbian American Engineer. The history of the Tesla
company is highly fascinating because this company has contributed much in the electricity for
developing the sustainable energy. When he immigrated to the New York country, he worked for
there as an engineer and while working, the misunderstanding was created. After this, he quit for
launching the Tesla Light Company and eventually after some years he met with the success
with another inventor in the industry of electricity, the licensed patents for the AC motors for
Tesla. The AC hydroelectric power plant was then used for the city of Buffalo in the New York
country. After this, he patented the coil of Tesla in the 19th century which enabled the wireless
technologies as well as the technology of the radio. Then the Nikola Tesla died and then the
Tesla company become the bankrupt company (Mohamad and Songthaveephol, 2020).
Then few years later, the Tesla company came up with the new ideas of sustainable
energy by manufacturing the electric cars and this company became the biggest and the first
company to manufacture the cars which manually works. This innovation is considered as the
incremental innovations because the company has taken all the existing pieces and putting these
together for making successfully new products. The Model S of the Tesla company's car is
considered as the best in the aerodynamics and has the longest range of the electric cars in
overall world as having up to 300 mileage in just single charge. This company has invented the
Tesla coil in the year 1891, which is still used in the radio, television sets as well as almost in
other electric equipments (McKenzie, 2019).
The innovations of the Tesla company is much highly and advanced in the terms of the
technology which was not even used by any other car manufacturing companies.
Existing Innovation performance and the capabilities of the company-
Innovation performance can be defined as the ability of transforming the innovation
resources as well as the capabilities which results to the success of the company in the market by
providing the competitive advantage to the organization. The performance of the innovation
helps in the understanding the efficiency of the efforts made by the company for the innovation
process.
The performance of the Tesla company is showing much growth by the innovation of the
new products. This company is producing the innovative products which does not cause any
harm to the environment which includes such as the range of the electric cars to by evaluating
the needs and wants of the consumers for meeting their expectations. The S model of the car is

the quickest as well as the safest car for the consumers. The main purpose of the producing such
products is to prevent the environment from the harmful gases which are emerged by the
vehicles as well as to change the world by adopting the advanced technology such as the fast
charging, sustainable batteries and many more (Alghalith, 2018).
Tesla company is leading the market by developing the cars for consumers by providing
them the power of fast charging. The company has introduced the innovative charges such as the
home charging, supercharger as well as the destination charging of the electric vehicles for fast
charging. The company after introducing the innovative products has seen much growth by the
sustaining innovation. This company is effectively contributing to the sustainable development
as this will prevent the harm of the planet that is to reduce the carbon emission produced by the
vehicles. The innovative products of the Tesla company has the ability to make the organization
lead in the highly competitive market and acquire the leading position (Munson, 2018). The
Tesla company has become much successful by these innovative products because of the new
regulations made by the government on the safety and emissions by the vehicle, advanced
technology as well as the changing of the consumer trends.
These innovative products have provided the competitive advantage to the company as it
offers the lithium battery cells as well as the EV battery packages. Tesla company by the
innovation has changed the automotive industry as they have improved the performance of the
cars over the period by using the highly advanced technology. The company has improved the
performance of the Autopilot system in the cars over the time of 18 months. The company is
contributing its best in eliminating the health issues to the local people as the main aim of the
company is to reduce the impacts of the transportation on the environment as it causes the noise
as well as the air pollution which can affect the human beings. This company came up with
increasing and improving the safety, performance as well as the efficiency in the innovative
products (Drexhagen, 2021).
The Tesla company has the advanced capabilities such as the autopilot, full self driving
capability, traffic aware cruise control, auto-steer, auto lane change and many more has helped
the company to stay ahead and unique as compared to other companies. The innovation strategy
of the Tesla is to mainly focus on transformation of the automotive industry by adopting the
advanced technology. The CEO of the company has created the innovative environment in the
organization to think innovatively by understanding the future trends of the company. Elon Musk

values the employees opinions by sharing their ideas to generate better innovations in the
company. The innovative products of the company has helped in accelerating the world towards
the sustainable energy by avoiding the carbon emissions exhaled by the petrol cars.
The company has made the environment friendly products which has attracted the large
number of the consumers towards the company and the market position of the company as this
shows the level of the performance after the innovations made by the company. This has
increased the financial performance of the company as this has increased the sales of the
products. The company is expanding in many regions which has enabled the company to
increase its growth and reach to the maximum number of the consumers. The performance
measured by the Tesla company is by evaluating the number of the cars produced and sold per
day (Afonso, 2018). The company has become much profitable after coming up with the new
products for the consumers to meet their expectations. The major profits of this company is made
by the selling the energy generation products as well as through the revenue from the increasing
the sales of the electric cars.
Industry in year 2021-
The Automotive industry in the UK was much impacted by the Covid 19 as this disturbed
the whole economy of the country. The pandemic has leads to the loss of the employment and
the people were not affording these luxury products. The level of this industry was growing at
very fast pace before the pandemic was arrived but due to the pandemic, there was created he
shortage of the semi conductors. The new cars booked in the year 2021 was 1.65 million that was
more than the year 2020 but it was much less than the cars registered in the year 2019. This year
was another disappointing year for the automotive industry as the sales was not much good for
the country (Demirbas, Wilkinson and Bennett, 2018).

Due to the shortage of the semiconductors has lead to the decrease in the manufacturing of the
new cars in the country. The industry was also highly hit by the difficulties in the supply chain
but with this, there was seen the growth in the sales of the electric vehicles in the year 2021.
Tesla company's Model 3 was the second best-seller in the last year by selling the 34, 783 units
of the car. In the month of November of the year 2021, it was seen that around 29% of the
production was dropped as the production of UK was highly affected by the factory stoppages
due to the lock down. The manufacturing facilities of the automotive industry was shut down
completely which has lead to the high impacts on the labour to the supply. It was found that their
was large some recovery shown in the production of the cars by many units. The Covid 19 was
the major factors by which the automotive industry was highly affected and because of the
economy of the country was also negatively affected.
The automotive industry of UK has shown some recovery in the ending of the year 2021
as the production was somewhat increased. The sales of the electric cars was increased but not of
other types of the auto-mobiles was in demand as the people were not having much money for

affording the cars or the vehicles. Tesla company, BMW company has earned money by
increased sales in the year 2021 (Morus, 2019).
In the year 2021, the starting of this year has not shown the positive results in the sales of
as the quarter 1 showed the 425,525 units sold. The results of the quarter 1 was less than the
results of the Q1 of the year 2020. The automotive industry of UK is much bigger as this
contributes to the economy as well as adds much value to the customers. The UK's automotive
industry is considered as the most growing industry. The largest car manufacturer in the UK is
the Jaguar and Land Rover which is accounting for around 30% of the domestic car production
in the year 2021. The sales of the electric vehicles in the UK was the record as the year 2021 has
recorded the maximum number of the sales of the electric vehicles in the country.
CONCLUSION
From the above report it can be concluded that the effective innovative leads to the success of the
company in the highly competitive market, and they are able to make the position. This report
has discussed the overview of the company as well as the history of the innovation which
includes how the company has taken the growth, and they were able to make the position in the

market by introducing the innovative products of the company. Along with this, this report has
also discussed the existing performance of the innovations made by the company as whether the
company has increased the productivity level by introducing these products.

REFERENCES
Books and journals
Afonso, N.A., 2018. Project of the implementation of driverless technology in vehicles of Tesla
company (Doctoral dissertation, Instytut Organizacji Systemów Produkcyjnych).
Alghalith, N., 2018. Tesla: innovation with information technology. International Journal of
Business Research and Information Technology, 5(1), pp.37-51.
Demirbas, D., Wilkinson, L. and Bennett, D., 2018. Supplier relations impact within the UK
automotive industry. Benchmarking: An International Journal.
Drexhagen, P., 2021. Tesla: a tech company selling cars-a story-driven valuation? (Doctoral
dissertation).
McKenzie, H., 2019. Insane Mode: How Elon Musk's Tesla Sparked an Electric Revolution to
End the Age of Oil. Penguin.
Mohamad, M. and Songthaveephol, V., 2020. Clash of titans: The challenges of socio-technical
transitions in the electrical vehicle technologies–the case study of Thai automotive
industry. Technological Forecasting and Social Change, 153, p.119772.
Morus, I.R., 2019. Nikola Tesla and the Electrical Future. Icon Books.
Munson, R., 2018. Tesla: Inventor of the Modern. WW Norton & Company.
Shevchenko, L., 2018. Tesla Inc. Збірник тез Міжнародної студентської науково-технічної
конференції „Природничі та гуманітарні науки. Актуальні питання “, 1, pp.200-
201.