Tesla's Business Strategies, External Factors, and CSR Initiatives

This report provides an overview of Tesla Inc., focusing on its business strategies, the external factors affecting its operations, and a controversial CSR campaign. It identifies five key strategies influencing the company's financial performance, emphasizing the importance of stakeholder relations and research in optimizing operational costs. The report also examines Tesla's CSR campaign involving the development of Solar City in Africa, highlighting ethical implications related to the use of second-category equipment. The analysis draws from various sources, including annual reports and financial data, to provide a comprehensive understanding of Tesla's business practices and their impact.

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Table of Contents
1. Company Overview of Tesla....................................................................................................3
2. External factors affecting Tesla................................................................................................3
3. Identification of 5 strategies.....................................................................................................4
4. Controversial CSR campaign...................................................................................................6
5. Reference List...........................................................................................................................7

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1. Company Overview of Tesla
Tesla Incorporation is USA best Automotive as well as Energy Company that is headquartered in
Palo Alto, California. The specialised department of the company is electric car manufacturing
and by means of their solar city subsidiary, they also specialises in solar panel manufacturing.
The company operates multiple production as well as assembly plants, notably mention may be
made of the gigafactory one plant near Reno Nevada. Again, the main manufacturing facility of
Tesla factory is at Fremont California (Stringham, Miller and Clark 2015). The company was
founded in the year 2003 by Martin Eberhard and Marc Tarpenning. The organisation has been
named as per the name of physicist Nikola Tesla. The sales value of the company has remarkable
increased year by year. In the year 2017 the tesla sales value had been 48000 and in the
immediately next year, that is 2018 the sales value increase by 280%.
2. External factors affecting Tesla
The availability of the zero emission vehicle credits in the city of California can be emphasised
as one important external economic factors that has its high impacts upon Tesla. Specifically, the
credits for zero emission vehicle rkw regulatory that provides financial benefits into the
businesses. Another economic advantage that Tesla enjoys is the Nevada tax incentives (Tansel
2015). This scheme provides Tesla with ample tax advantages in such a way that it gives
abutments for sales as well as used Axis personal property taxes, real property taxes as well as
employee excise taxes including discounts over the base tariff energy rates and lastly
Transferable tax credits until the year 2034.
Sofa economic factors are concerned, the flexibility of the foreign currency rates of exchange
can also be highlighted as a note for the factor that is impacting sales and business of Tesla all

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over the globe. The highly feasible International scope of Business expansion for Tesla is the
basic reason behind this. The business scope is provided to the company since they are one of the
leading manufacturers of alternative fuel vehicles. In the year 2016 and financial year 2016 the
company recorded in Transaction game over foreign currency and their profit was amounting to
the value of 52.3 million US Dollars in the year 2017 and 26.1 million US dollars in the year
2016 (Hardman, Shiu and Steinberger-Wilckens 2015). Estimation provides that hypothetically
10% change in interest rate would be accounting to an increment of the interest expense of Tesla
by 7. 6 million US Dollars in the year 2019.
3. Identification of 5 strategies
Analysis of the annual reports as well as the financial budget of the organisation reflects
prevention strategies in which the financial performance of the company is being affected by the
primary stakeholders of the company. firstly can be highlighted win the organisation performs
well (above the average limit for the concerned Industry that includes automobile manufacturing
alternative for alkas as well as solar power panels) , well framed stakeholder relations help to
sustain it for longer period of time. In case if the stakeholders feel engaged and are happy with
the performance of the organisation they will be enticed to appraise the workers which will
intern motivate the employees (Chen and Perez 2018). They will like to work harder or as such
the stakeholders might also decide to give heavy discount on their products which will intern
enters the customers to buy more products or invest more on buying products of Tesla.
Similarly, the impact of the poor performance on of the firm should also be considered. In case if
the stakeholders’ relations with the higher management comedy actors as well as the executive
management is very good they will help the company with courage and resources so that it is
able to bounce back faster. An evidence can be provided in this context. In the year 2005

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financial crisis in the production unit was faced by the company and industrial accident
proceeded this crisis. The company was able to recover in less than 1 year owing to an
accomplishment from the end of the directors other so as well as three primary shareholders,
ample support was received from employers, supplier’s community as well as the customers
(Kwan 2015). This example is a clear evidence of how stakeholder engagement for the company
can help in boosting business performance even after a temporary backlog (Motors 2015).
The relation with the stakeholders are unique in their capacity to help the company to bounce
back. Other competencies like technological expertise are specific to a definite context and can
lock the firm into bad patterns or either good one. However the relationship with the stakeholders
are effective in a way that they are flexible across contexts as well as worse than enough so as
their able to support End Apartment when needed in the context of strategy formation.
it is evident that stakeholder relations do not lead to a persistently high level of performance over
and over. For successful companies like Tesla they are highly dependent on the other
competitive departments of the organisation like technological or sales or production (Hettich
and Müller-Stewens 2017). However it is the major stakeholders that enables and empowers the
departmental capacitance so as the company is able to accelerate their sales or production and
revenue generation hike in great percentage is absolutely an intern impact of that.
Another important influence on financial performance is coming from the end of the researchers.
The researchers can help the organisation in optimising their operational cost bye lightweight
and light metal technology by means of which the company would require 32% lesser cost to
manufacture the cars and as it seems the market value of cars and their on road prices are
enhancing in America now in light of which it can be stated that the revenue per unit sale might
increase by 40% in the year 2022 also (Hess and Andiola 2017).

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4. Controversial CSR campaign
Tesla was involved in a very essential and socially relevant CSR campaign of development of
Solar City in America in order to help the spread of electricity in African countries. The
company set up solar panel based fabrication responsible for supplying power to 14 cities
consecutively. The project was highly acclaimed and the company was praised for this activity.
Highway later it was revealed that the solar panels as well as the project equipment used for the
campaign where all of the seconds category. Also there was no allegation regarding the
performance of the equipment, however it can be stated that there was a moral implication and
that too strongly in what Tesla had done.

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5. Reference List
Chen, Y. and Perez, Y., 2018. Business model design: lessons learned from Tesla Motors. In
Towards a Sustainable Economy (pp. 53-69). Springer, Cham.
Hardman, S., Shiu, E. and Steinberger-Wilckens, R., 2015. Changing the fate of Fuel Cell
Vehicles: Can lessons be learnt from Tesla Motors?. international journal of hydrogen energy,
40(4), pp.1625-1638.
Hess, M.F. and Andiola, L.M., 2017. Fraud Risk Brainstorming at Tesla Motors. Issues in
Accounting Education, 33(2), pp.19-34.
Hettich, E. and Müller-Stewens, G., 2017. Tesla Motors. Business Model Configuration.
Kwan, N., 2015. Tesla Motors Quality Engineering Application and Implementation.
Motors, T., 2015. Tesla Model S. Palo Alto. Online verfügbar unter http://my. teslamotors.
com/de_DE/models/design, zuletzt geprüft am, 17, p.2015.
Stringham, E.P., Miller, J.K. and Clark, J.R., 2015. Overcoming barriers to entry in an
established industry: Tesla Motors. California Management Review, 57(4), pp.85-103.
Tansel, A.K., 2015. Analysis of Tesla Motors’ Marketing Communications Strategy.

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