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The major goal of Tesla Motors Inc. is to foster the transition of the world towards sustainable energy development. The company was represented since 2003. It was founded by a team of engineers whose primary objective was to check whether electric cars can be compatible or even better than gasoline ones. However, it is worth stating that the product even exceeded expectations as its first electric cars could compete with dominant brands like Porsche and Lamborghini.
What is the secret of the company? There are a lot of factors that contributed to the prosperity of the company. Perfect marketing strategies to produce electric cars on the premium level, the desire of young and wealthy people to drive on a special car that does not have anything in common with old standards, all these statements contributed to the development of the company.
The company aims to make cars affordable and to reach the fundamental goal, namely to foster the transition of the world to a new level of development. Every newly produced car will be more affordable than the others. In 2008, the company produced a Roadster that has an impressive success on the market. Tesla Roadster was sold with impressive speed. Over two thousand cars were purchased by people from over thirty countries. In 2012, Tesla Motors designed the first electric car of the premium class. Although the history of the company is not long, Tesla Motors is successful in the global market as they provide people with an opportunity to be environmentally friendly and enjoy comfort and innovations. Improvement of energy is the primary goal that the company achieves.
As a matter of fact, the company sells cars not only in America but internationally. According to the analysis of the geographical area of Tesla Motors’ sales, the United States is the country where these cars are sold most. The second place is for Norway and China. In addition, it is worth stating that the cars are sold in Europe as well. It is related to the ideas and beliefs of people and governmental politics. The society that cares about the environment is sure to consider Tesla Motors not only for zero emissions, but that the cars are high quality, safe, and modern as well.
The gigafactory plant is an integral part of the plan of Tesla Motors. The plant is situated in the United States, Nevada, and is focused on the production of batteries. It will help to increase the production of electric vehicles and reduce their cost. The plant is to be built by 2017.
The reason the company decided to turn attention to global strategies is evident as the company aims to influence the world and to foster the transition to the products that are environmentally friendly. It should be noted that Tesla Motors globalize to reach a bigger global market and to engage as many customers as possible. It is understandable because the more customers going to buy electric cars the better it will be for the environment, and it reflects the fundamental objective of Tesla Motors.
Tesla Motors has already attracted the attention of investors from all over the world. According to recent researchers, there are good chances for investors to have good returns from the company. However, it is worth pointing out that the technologies that Tesla Motors currently uses are innovative and new. On the one hand, it is beneficial; nevertheless, on the other hand, it is not clear yet how these technologies will function in the future. Tesla Motors aims to enter the market of other European countries and discover the Asian market as well.
It took ten years to perform the first task, namely to show the world that electric cars can be profitable. The next step is a more global mission, namely getting rid of oil dependence and attracts as many users as possible.
Tesla Motors implement their management strategies to influence the situation of the environment in a positive way. The company designs its car with fewer details than ordinary cars. Tesla Motors is almost independent of the heavy chemical industry. The only things that can be changed are wheels and batteries. The service centers are almost not needed, and it is a threat to car mechanics.
The company invests impressive amounts of money for building plants and factories. They locate all the plants on the territory of Europe and the United States, in contrast to other world-famous companies that turn their attention to the Asian countries to make the product cheaper and use cheap workforce. However, this year Tesla Motors decided to locate one plant in China. This decision is essential for the company’s success in the Chinese market. The organization does not use the products made by other companies and invents everything based on own facilities.
Tesla struggled with sales in China. It was related to the impressively big difference in price for Americans, Europeans, and Chinese people. The fact that the cars need to be shipped to Chine over the ocean made the price bigger. However, the Tesla plant in Chinese will solve this issue.
Tesla Motors cooperate with Daimler, which has 10% of the company. Daimler invests in Tesla, and their collaboration can be considered as a prolific one as Tesla cars are the only electric cars represented on the market of North America and Europe. They closely cooperate to make progress in the production of lithium-ion batteries and individual projects. Thomas Weber stated that:
Our strategic partnership is an important step to accelerate the commercialization of electric drives globally. As a young and dynamic company, Tesla stands for visionary power and pioneering spirit. Together with Daimler’s 120 years of experience in the automotive sector, this collaboration is a unique combination of two companies’ strengths.
As it was stated before, the expansion of the global market is the primary objective of the company. Although the company is relatively young for the automobile industry, it is considered to be the most innovative and creative.
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Tesla and German carmaker BMW want to expand the network of Tesla charging stations. Two companies are discussing the ways to increase the popularity of electric cars, as well as the possibility of unification of charging stations. Tesla is interested in such collaborations as their goal is to make electric vehicles more popular. That is, such cooperation is seen as an advantage.
Tesla Motors produces the types of cars can be used in every country in the world, and that is there is no need to adapt the models to the particular market needs. Comfort and safety receive primary focus and concern. However, it should be stressed that according to the feedback from Chinese customers, the company implemented modifications for Model S with “executive rear seat option”. The needs of Chinese people differ from the European or American market, and that is, to satisfy the customer’s Tesla Motors makes some modifications. The organization does not have a joint venture in this country. In contrast to Tesla Motors, Ford and General Motors have joint ventures with Chinese companies. The growing popularity of Tesla in China will consequently lead to the establishment of partnerships with domestic organizations.
Doeden, Matt. SpaceX and Tesla Motors Engineer Elon Musk. Minneapolis: Lerner Publications, 2015.
Jones, Chuck. “Analysis Of Tesla Sales By Geography.” Forbes. 2014.
O’Hara, Mark. “What Is Tesla Doing to Put Things Right in China?” Market Realist. 2015.
“Strategic Partnership: Daimler Acquires Stake in Tesla.” Tesla Motors. 2010.