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Tesla Motors

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Tesla Motors

The world has been using fossil fuels to power vehicles since they were first

invented. Fossil fuels have led to environmental pollution until Tesla motors began to

shift the paradigm through manufacturing of electric vehicles (Handa, 2020). The

company’s vision was to establish a market for clean energy products. Tesla was

founded in 2003 by a group of engineers and was acquired by Elon Musk in 2004 who

became the largest shareholder (Han, 2021). From the start the company experienced

problems with the economies of scale, lawsuits and declined profits. However, the

company turned around and began designing superior products that have increased its

market share exponentially (Han, 2021). The purpose of this paper is to discuss how

Tesla has embraced innovation in electric vehicle manufacturing and customer

service.

Government policies have accelerated the growth of Tesla into a giant electric

vehicle manufacturing company. The laws passed on production of zero emission

vehicles have created a niche for Tesla to take advantage of using electric cares

(Liu,2021). The initial fleet purchase by governments boosted the sales of the vehicles

enabling the company to generate revenue within a short time. Tesla’s mission is

aligned with the government’s to reduce carbon IV oxide emissions (Liu, 2021). Thus

alignment has made the company receive protection from the governments. The

vehicles improve air conditions and reduce the onset of airborne diseases thus

winning the hearts of many politicians. President Bush’s administration gave Tesla a

loan to start off the manufacturing process which was paid back at a low interest (Liu,

2021). The financial success of Tesla is tied to the political goodwill of the United

States government.
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Superior technology.

The company has developed extensive technological portfolios to brig down

the cost of production and to lower the cost of the vehicles. Tesla’s use of Internet of

Things (IoT) has enabled it to manage the complexity of the manufacturing process

while maintaining flexibility (Liu, 2021). The company has synergistic relations with

other tech companies such as Panasonic which enables them to work on better

products.The battery and electric power components are designed to allow flexibility

and give room for future advancements.The battery cells are optimized to store more

power for the vehicles (Han, 2021). The batteries can power the vehicle for up to 370

miles before recharging.Tesla managed to use cylindrical battery cells in the battery

packs that have made it easier for production of powerful battery packs.

Powertrain and battery cell pack is the rarest technology used that makes it

difficult for competitors to copy the vehicle models as it requires high level expertise

(Han, 2021). The company built its own battery factory to secure a supply for

batteries and minimize the cost of manufacturing. Tesla uses automated vehicles and

robots in place of heavy equipment to move components around during

manufacturing (Perkins & Murmann, 2018). The overhead costs have been

significantly reduced by this move and manufacturing process has become more

efficient.The engineering team is located in the same place to minimize logistic costs ,

to speed up the processes and reduce waste production. Making the engineering team

work from the same place leads to production of better products due to exchange of

ideas (Perkins & Murmann, 2018). The location of the vehicle plant in Carlifornia

places it to close proximity with a huge supply of engineering labor from Palo Alto.

Customer service and diversified products.

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Tesla’s integrative distribution model focuses on building more service centers

and network stores. The distribution centers are located in visible areas such as

shopping malls thus increasing the chances of the potential customers interacting with

the product (Han, 2021). The stores are purely informative, making customers aware

of the vehicles and enriching their experience. Knowledge customers gain from the

store visits helps to build a strong brand perception. The company sells its products in

their showrooms, enabling them to interact with customers and speed up product

development (Han, 2021). The showrooms have doubled up as service and retail

centers for the customers. Customers can service and charge their vehicles at the same

location leading to more satisfaction with the product.

Tesla has mobile technicians who move to customer’s location and fix

mechanical issues the vehicles are experiencing. They also started an online platform

where a user can upload the vehicles data and a solution given to the problem (Han,

2021).The company has an efficient vehicle software that runs the vehicle. The

technicians fixes the vehicle online without touching it. Issues that are hindering the

vehicle from working are resolved promptly even when vehicles are in remote

locations. The company also offers a wide range of products for their consumers such

as home batteries and solar panels (Handa, 2020).The company gives loans to the

customers who want to sell their vehicles or take bank loans.The company takes

customers deposit up to three years upfront before the vehicle is produced and

delivered to them.

The company developed self-driving cars fitted with radar, sonar and cameras

to guide drivers. The vehicles are poised to reduce monetary loses caused by accidents

to the global economy (Ajitha & Nagra, 2021). The cars has contributed to an

increase in engineers and computer scientists who fix software and hardware-related
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automobile issues. The sensors helps the vehicles to avoid accidents and enables the

company collect data about the road conditions (Ajitha & Nagra, 2021).The company

provides training for the employees from time to time to equip them with knowledge

on the company’s products. On-job training is provide and employees are assessed

over time to establish their performance and enable them assist customers when their

vehicles face mechanical issues.

Strong brand

The company has established a strong brand to the consumers that makes

many people wish to be associated with it. Elon Musk, the company’s CEO has

championed for adoption of alternative energy use that is eco-friendly (Handa, 2020).

The vehicles manufactured have been high performing and exceeding the customer’s

expectations. The brand has achived numerous awards such as being voted the car of

the year by consumers in 2013 (Han, 2021). Good performance has made customers

to refer the brand to their close friends and relatives. The superchargers produced by

the company are 16 times more efficient than public charging stations guranteeing

their customers with a steady power supply. The sipercharging stations charge

vehicles free to their customers. Vehicles take a maximum of thirty minutes to charge

(Ajitha & Nagra, 2021).The vehicles are cherished due to high accelaration and

superior lighting. The ability of the battery to store charge for a long time makes it

suitable for long distance driving (Ajitha & Nagra, 2021). The batteries enables the

vehicles to accelerate quickly from 0-60mph in less than four seconds.

In conclusion, Tesla has made strides in the technology world by building a

product that is environmental friendly. Tesla’s success began with President Bush’s

goodwill to support the company by giving it a loan. Customer service at Tesla is

prompt and efficient where the vehicle can be fixed remotely by technicians using
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software. The company capitalized on the move to reduce carbon emissions by

developing superior battery technology to run the vehicles. Tesla batteries stores

charge that makes the vehicles suitable for long distance driving. The use of IoT has

enabled the company manage complex processes. The company’s self driving cars

reduces road accidents by using cameras and sensors.

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References

Ajitha, P. V., & Nagra, A. (2021). An Overview of Artificial Intelligence in

Automobile Industry–A Case Study on Tesla Cars. Solid State

Technology, 64(2), 503-512.

https://www.researchgate.net/profile/Ankita-Nagra/publication/349298066

Han, J. (2021). How Does Tesla Motors Achieve Competitive Advantage in the

Global Automobile Industry?. Journal of Next-generation Convergence

Information Services Technology Vol, 10(5), 573-582.

https://scholar.archive.org/work/3fe5chu3dvevjldso4qrxfnoku/access/

wayback/http://www.ngcists.org/journal/file_down.asp?file_idx=633

Handa, M. B. Constant Rise of Tesla Inc.: Strategic Marketing Plan Leading To

Company’s Colossal Growth in 2020.

https://acfa.apeejay.edu/docs/volumes/envision-2020/envision-paper-06-vol-

14-2020.pdf

Liu, S. (2021, March). Competition and valuation: a case study of Tesla Motors.

In IOP Conference Series: Earth and Environmental Science (Vol. 692, No. 2,

p. 022103). IOP Publishing.

https://iopscience.iop.org/article/10.1088/1755-1315/692/2/022103/meta

Perkins, G., & Murmann, J. P. (2018). What does the success of Tesla mean for the

future dynamics in the global automobile sector?. Management and

Organization Review, 14(3), 471-480.

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https://www.cambridge.org/core/journals/management-and-organization-

review/article/what-does-the-success-of-tesla-mean-for-the-future-dynamics-

in-the-global-automobile-sector/B023204421876CFB08B4DEA7FEA2C3D6