THE 8-STEPS KOTTER’S MODEL

TESLA MOTOR
COMPANY
GROUP 6
 Meet Our Team
02 02 02

Nguyen Thi Ngoc Anh Phung Ngoc Diep Pham Thi Mai Linh

02
02

Le Ngoc Mai Vu Tran Tien

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 Table Of Content

General info Tesla Inc.

01. Page 3

8-steps Kotter's model analysis

02. Page 5

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About Tesla
Tesla, Inc.
(formerly known as Tesla Motors, Inc.)

66 billion
July 2003 Co.Founder
USD
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About Tesla

Business Operations
Company Business Strategy
Automotive and energy generation and
storage Target Customer: Luxury => Normal
Market Segment: Mass market
=> Over 200 miles per charge
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8-steps
Kotter's
model
Topic: Tesla's strategy
analysis change to enter the
China market
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 STEP 1: CREATING A SENSE OF URGENCY

2017 2018 2019

RECALLS 53,000 CARS MODEL 3 PROBLEM NEW CHAPTER

Tesla proved its resilience
Repairing the cars posed And building a new factory and steadily demonstrated
significant difficulties. was delayed due to debt. its ability to overcome
hardships

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 STEP 2: PULL TOGETHER THE
GUIDING TEAM
The difficulties Tesla faced when starting to
implement the change

1 2 3
Compete with other Balance its global The trade war between
electric car makers in demand and supply the US and China
both markets with limited
production capacity
and resources

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 Tesla Key Executive Team in China
STEP 2: PULL Tesla hired Zhu Xiaotong as the head of its China
operations in 2014. He was responsible for leading
TOGETHER THE Tesla’s expansion and growth in China, as well as
building relationships with the government,
GUIDING TEAM suppliers, and customers.
Tesla also established a China Advisory Board in
2015, which consisted of prominent Chinese
business leaders, academics, and experts. Some of
the members included
Robin Li, the founder and CEO of Baidu;
Ma Huateng, the founder and CEO of Tencent;
Wang Chuanfu, the founder and chairman of
BYD;
Li Yinan, a former Huawei executive and founder
of Niu Technologies;
Wu Jinglian, a renowned economist and
professor.
The board provided strategic advice and guidance
to Tesla on various aspects of its China strategy,
such as market entry, product localization,
innovation, and policy

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STEP 3: DEVELOP
THE CHANGE
VISION AND
STRATEGY
Tesla’s New Vision
Become a leader in the global electric vehicle
market and to accelerate the world’s transition to
sustainable energy
Leverage China’s huge market potential,
supportive policies, and advanced infrastructure
for electric vehicles.
Contribute to China’s environmental goals and
social development
 Tesla communicated its vision to its internal
STEP 3: DEVELOP stakeholders, such as its employees, investors, and
partners, through various channels, such as
THE CHANGE
VISION AND 1 press releases
STRATEGY

2 social media

3 newsletters, webinars

4 events.
 STEP 4: COMMUNICATE FOR
UNDERSTANDING AND BUYING IT
Tesla used various channels and platforms to communicate its vision,
1 mission, values, and products to its internal stakeholders, such as its
employees, investors, and partners.
Tesla also promoted a flat organizational structure that allowed its
2 employees to communicate directly with anyone in the company,
regardless of their rank or position.

Tesla also empowered its employees to make decisions and take actions
3
that aligned with the company’s vision and values

Tesla also published quarterly reports, press releases, and social media
4 posts to inform its shareholders and partners about its financial
performance, market share, and innovation in China.
 STEP 5: EMPOWER OTHERS TO ACT

Empower to manage

Director Tom Zhu of Tesla China, who is the most senior executive after
Elon Musk, normally directly oversees Tesla's assembly plants in the
US, overseeing orders in all major markets and operations of the
company's main production centers

When bringing Tesla into China and building a factory in Shanghai, he managed the production of
the China region and worked with a team of engineers and designers in China to adjust the Tesla
Model 3 to suit the market

==> This includes changes and adjustments specifically to meet the requirements and preferences
of consumers and regulations in China.

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 STEP 5: EMPOWER OTHERS TO ACT

Empower to negotiate

Tesla CEO Jerome Guillen negotiated with the Chinese government to

expand battery supply partnership to reach agreement to open
Tesla's first overseas factory

Empower to marketing
Senior managers and leaders in the Department of Communications and Strategic Planning have
performed information and communication related tasks about opening a factory in Shanghai,
building and redesigning websites for Tesla's customers in China to take advantage of “the power
of word of mouth”

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 STEP 6:
CREATE
SHORT-TERM
WINS
Under the management of Mr. Zhu, the
Shanghai Tesla factory has recovered strongly
after the blockades to prevent Covid-19 in
China.

China became the most important market

outside of the U.S

Q3 sales in the Chinese market reached

$3.11 billion, or 48.5% of total sales of $6.41
billion in the US

Tesla is exempt from 10% sales tax on

Tesla Model 3 cars and receives a
government subsidy of $ 3,560 per vehicle
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 2.7. STEP 7: DON'T LET UP
Challenge

Covid 19: Due to the strict blockade measures of the

COVID-19 epidemic of the Shanghai government,
Tesla's factories have been slowed down.

Massive Recall: More than 80,000 Teslas have been

recalled according to the Chinese market regulator to
fix software issues affecting the cars’ battery operating
system.

Cars Banned for Alleged Spying: The Chinese military

claimed that anyone who drove a Tesla would no
longer be able to park their car on both military bases
and housing communities

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 2.7. STEP 7: DON'T LET UP

Create Positive Changes China is Tesla's "paradise" with marketing

strategy is a "marketing budget of $0"

First, Tesla aims to optimize the

customer experience

Also, instead of paid advertising,

Tesla's marketing strategy in
China involves a referral program.

Elon Musk is active on social

media, especially on Twitter

Finally, transparency is also

important to Tesla in China.

Tesla has made a difference that no other

electric car brand has been able to do before

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 2.7. STEP 7: DON'T LET UP
Create Positive Changes
Although Tesla's start in the Chinese market
coincided with the Covid 19 pandemic . In which,
Tesla sales accounted for 30%

In 2022, the company delivered more than 710,000

cars to customers in this country, an increase of
50% compared to the same period in 2021

On April 9, 2023, electric car company Tesla signed

a contract to build a second factory to
produce batteries

30% 710.000
Electric car sales Tesla cars sold
in 2019 in 2022

at least 1 million
cars sold every year
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Step 8: New Culture
Tesla always comes up with bold ideas, that's
why Elon Musk constantly pushes employees
out of their "comfort zones", directing them to
burn out to exceed their limits

Tesla changes the way it interacts with

government agencies and complies with
requirements in China's business environment

In formulating Tesla's business strategy, Elon

Musk and his associates declared their
mission to "accelerate the world's transition to
sustainable energy."
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 Step 8: New Culture
During the US-China trade war, China has
imposed an import tax of 40% on Tesla
cars, while other car manufacturers only
have to bear 15%

Tesla may have tried to integrate elements of

Chinese culture and values into their
organizational culture within the company.

China is also the country with the most

polluted cities in the world, causing people's
tastes to gradually switch to electric vehicles

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 REFERENCES
An, P. (2021, 1 14). Mối thâm tình của Elon Musk và Trung Quốc. Retrieved from VnExpress:
https://vnexpress.net/moi-tham-tinh-cua-elon-musk-va-trung-quoc-4220640.html
An, P. (2023, April 10). 'Cuộc chiến' xe điện của Tesla ở Trung Quốc. Retrieved from VnExpress:
https://vnexpress.net/cuoc-chien-xe-dien-cua-tesla-o-trung-quoc-4591143.html
Anh, V. (2023, June 02). Trung Quốc phải cảm ơn Elon Musk: Tesla giúp đánh thức một phần thị
trường đang ngủ quên, lợi thế cạnh tranh trông thấy rõ. Retrieved from CafeFvn:
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CNBC. (2018, 10 3). Tesla thiệt thòi vì chiến tranh thương mại Mỹ - Trung. Retrieved from VnExpress:
https://vnexpress.net/tesla-thiet-thoi-vi-chien-tranh-thuong-mai-my-trung-3818794.html
Crawford, A. (2021, 2 24). Zero to 100 in 2.1 seconds – is this too fast for the road? Retrieved from
CarExpert: https://www.carexpert.com.au/opinion/zero-to-100-in-2-1-seconds-is-this-too-fast-
for-the-road
Daxueconsulting. (2022, August 09). Tesla in China: Dominating the EV market with 0 marketing
budget. Retrieved from daxueconsulting : https://daxueconsulting.com/tesla-in-china/

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