Comprehensive Exam, Tesla (Answer)

Tesla: Companies Fighting
Climate Change in 2023
Comprehensive Exam: November 2022

MBA- Major: Project Management
Registration no: 20122083
Arab Academy for Science, Technology & Maritime Transport
Graduate School of Business
MBA Spring 2022 - Sheraton - Group 4th PM (4XW)
MBA Project Management Registration no: 20122083
Contents
Abstract: .............................................................................................................................................................. 3
About Tesla: ......................................................................................................................................................... 3
o Vision.......................................................................................................................................... 5
o Mission ....................................................................................................................................... 5
External Environmental Evaluation: .................................................................................................................... 6
o PESTLE Analysis for Macro Environment ................................................................................... 6
Political Factors: ...................................................................................................................................... 7
Economic Factors: ................................................................................................................................... 7
Sociocultural Factors .............................................................................................................................. 8
Technological Factors ............................................................................................................................. 8
Ecological/Environmental Factors ....................................................................................................... 9
o Porter’s 5 forces Analysis: ........................................................................................................ 10
Threat of New Entrants (moderate) ...................................................................................................... 10
Threat from substitute: (Weak)............................................................................................................. 10
Rivalry Among Existing competitors: (High) ................................................................................... 11
Bargaining power of suppliers: (High)..................................................................................................... 11
o Competitive Profile Matrix....................................................................................................... 13
o EFAS External Factor Analysis Summary .................................................................................. 15
Internal Environmental Evaluation:................................................................................................................... 16
o Financial Analysis ..................................................................................................................... 16
o McKinsey 7s Framework .......................................................................................................... 21
1. Hard Elements ................................................................................................................................... 21
2. Soft Elements ..................................................................................................................................... 24
o Internal Factor Analysis Summary (IFAS) ................................................................................. 29
Matching & Strategy Generation phase ............................................................................................................ 30
o SWOT Analysis.......................................................................................................................... 30
o TOWS Matrix ............................................................................................................................ 31
o Space Matrix ............................................................................................................................ 32
Strategy selection: ............................................................................................................................................. 34
o Quantitative Strategic Planning Matrix (QSPM) ...................................................................... 34
o The Most important Strategy .................................................................................................. 36
o Strategic objectives: ................................................................................................................. 37
1. Internal Policies to be followed ............................................................................................... 38
Evaluation & Control: ........................................................................................................................................ 39
Business Plan 2023 for Tesla, Inc.:................................................................................................................... 42
1. Executive summary .................................................................................................................. 42
2. Company description ............................................................................................................... 42
3. Organization and management ............................................................................................... 46
4. Market assessment .................................................................................................................. 48
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5. Product lines ............................................................................................................................ 51

6. Marketing and sales plan ......................................................................................................... 52
7. Financial projections ................................................................................................................ 56
• Financial position:.............................................................................................................................. 56
• Financial Statement Q3 - FY2022: ..................................................................................................... 58
• Financial Forecast: ............................................................................................................................. 61
References ......................................................................................................................................................... 62
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Tesla: Companies Fighting Climate Change in 2023

A comprehensive case
MBA - Graduate School of Business
Arab Academy for Science, Technology & Maritime Transport
Abstract:
Climate change is reaching alarming levels globally due in large part to emissions from burning fossil
fuels for transportation and electricity generation. The world cannot reduce GHG emissions without
addressing both energy generation and consumption. And the world cannot address its energy habits
without first directly reducing emissions in the transportation and energy sectors.
Tesla, Inc. is a market leader in designing and manufacturing a complete energy and transportation
ecosystem. Tesla both develop the technology behind this ecosystem and focus on the affordability of
the products that comprise it through R&D and software development efforts as well as through a
continuous drive to develop advanced manufacturing capabilities.
This study provides a detailed strategic plan for the development of Tesla worldwide using
quantitative and qualitative analyses.
Strategy plan is a vital element that Governmental authorities & private sector business companies
should develop to withstand intense market competition and to improve its business performance.
PESTEL analysis is used to analyze the external environment of companies, while Porter model is used
to identify the competitive environment of companies. SWOT/TOWS matrix is used to visualize and
prioritize the external threats and opportunities as well as the internal Strengths & Weaknesses
factors in Tesla generate different strategies, space matrix is used to identify the most required
strategies.
Based on the results, the external (opportunities and threats) and the internal (strengths and
weaknesses) factors were evaluated. Finally, Quantitative Strategic
Planning Matrix (QSPM) is used to evaluate the most required strategy
to be implemented though a SMART objective in order to be merely
evaluated & controlled for continuous improvement.
About Tesla:
Tesla, Inc. is an American multinational automotive and clean energy
company headquartered in Austin, Texas. It was incorporated in July
2003 by Martin Eberhard and Marc Tarpenning as Tesla Motors. The
company's name is a tribute to inventor and electrical engineer Nikola
Tesla. In February 2004, via a $6.5 million investment, Elon Musk
became the largest shareholder of the company. He has served as CEO Tesla Factory in Fremont, California
since 2008.
Initially, Tesla’s engineers wanted to prove that electric cars could be better than gasoline-powered
cars. With instant torque, incredible power, and zero emissions, at then Tesla’s products would be cars
without compromise. Today, Tesla builds not only all-electric vehicles but also infinitely scalable clean
energy generation and storage products. Tesla believes the faster the world stops relying on fossil
fuels and moves towards a zero-emission future, the better.
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Tesla ranked as the

most valuable
automotive brand
worldwide as of June
2022 and within the
fifteen most valuable
brands across all
industries in 2021.
(Carlier, 2022)
Leading brands
worldwide in 2021,
by brand value
Published by Statista
Research
Department,
Jul 27, 2022
Tesla’s revenue grew to

around 53.8 billion U.S.
dollars in the 2021 fiscal year,
a 71 percent increase from
the previous year. The United
States is Tesla's largest sales
market. (Carlier, 2022)
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Revenue rises on model additions: More than 47 billion U.S. dollars of the company's revenue is
generated from Tesla's automotive segment, which includes the design, manufacturing, and sales of
vehicles. As of March 2020, the electric vehicle (EV) maker has a model range that includes the Tesla
Model S, Tesla Model X, Tesla Model 3, and the newly released Tesla Y. Production of the anticipated
Cybertruck, the brand's light truck model, along with Tesla Semi, semi-trailer truck, has been delayed
in January 2022 to 2023.
Model 3 legacy: The Model 3 has emerged as Tesla's best-selling vehicle, leading the ranking in
worldwide plug-in vehicle sales in 2021. In June 2021, the model became the first electric car to pass
one million global sales.
Much of Tesla’s spending has specifically been on production of its new Model 3, a strongly popular
vehicle with high demand. One response to this surge in popularity for the Model 3 was Tesla’s 2018
purchase of land for the construction of a Gigafactory in Shanghai, China. A factory within China will
provide Tesla steady access to the Chinese electric vehicle market, a consistency welcomed in the
midst of tensions between the U.S. and China over trade policies.
o Vision
Tesla’s vision statement is “to create the most compelling car company of the 21st century by driving
the world’s transition to electric vehicles.”
The vision statement emphasizes the company’s focus on sustainable applications in transportation.
However, this statement is aligned with Tesla’s first Master Plan stated in Tesla blog post (Musk, 2006)
while it’s not aligned with the second phase released in July 2016 (Musk, Tesla Blog Post, 2016) where
Musk stated Tesla’s updated master plan, his focused included areas such as solar roofs, integrated
battery storage and full self-driving (FSD) technology.
Also, Musk discussed the Tesla Master Plan Part 3 at a company meeting. Electrek reports that when a
staff member asked about the master plan’s next phase, Musk added that the plan’s next phase came
down to an important question: “How do you get to enough scale to actually shift the entire energy
infrastructure of earth?”
Which declare that the third phase of Tesla’s master plan will center on growth through scaling
operations. (Brient, 2022)
Accordingly, the vision statement has to be updated to their new dream stated above.
New probable vision: “creating the most compelling transportation methods & sustainable energy
facilities by driving the world’s transition to utilize clean energy resources.”
o Mission
Tesla’s mission statement was “to accelerate the world’s transition to sustainable transport.”
However, in mid-2016, the company changed it to “Accelerating the world’s transition to sustainable
energy.”
Neither the old nor the new statement included the major parameters of mission statement, as it only
represents company’s goals, Products, & the market scope, however the company’s web site (About
Tesla, 2022) includes more details towards its missions as follows:
• Products & Markets:
▪ Solar: Produce solar energy for residential and commercial needs.
▪ Batteries: Install batteries to store clean energy.
▪ Electric Vehicles: Make robust, zero-emission vehicles that can charge with clean energy.
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Tesla Solar Panels, above roof installation. Tesla Semi Truck, ETA 2023
Fremont, California Fremont, California
• Self-concept (competitive advantage):
Make it (Ridiculously) Fun: Our vehicles are some of the safest in the world. After safety, our goal
is to make every Tesla the most fun you could possibly have in a vehicle. We build features that
make being in your vehicle more enjoyable—from gaming to movies, easter eggs and more. With
over-the-air software updates, we regularly
introduce features at the push of a button.
• Employee:
The Tesla Team: Using a first-principles approach, we
solve some of the world’s biggest problems. If you’ve
done exceptional work, join us in tackling the next
generation of engineering, manufacturing, and
operational challenges.
• Technology & Philosophy:
The Machine That Builds the Machine: To shift
humanity away from fossil fuels, we need extreme
scale. Headquartered in Texas, we operate six huge,
vertically integrated factories across three
continents. With over 100,000 employees, our teams
design, build, sell and service our products in-house.
External Environmental Evaluation:

o PESTLE Analysis for Macro Environment
PESTLE analysis is an indispensable strategic tool for companies to analyses the macro-environment of
the business, helping them to quickly understand the growth or decline of their markets, their
business position, their potential, and the direction of their operations.
It offers context information regards to the business directions, its brand position, development goals
and threats. This can be helpful in determining the rationality of current goods and services and
describe novel product development.
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Political Factors:
Stability
Tesla has an opportunity to increase sales volume as the majority of major markets has a
political stability.
The U.S. government has shown interest in renewable energy and electric vehicles, in 2010
Tesla was granted a $465 million low-interest loan from the Department of Energy, Loan fully
repaid in May 2013 (LPO, 2017), Tesla has an opportunity to strengthen its financial
performance through incentives from governments. Expanding free trade agreements open
opportunities for Tesla to grow its operations internationally. Tesla is expected to increase
their sales in environmentally friendly countries, as these countries ‘governments provide
more incentives to encourage their inhabitants to towards clean energy products.
Pressure Groups
Tesla has an opportunity to increase sales volume in countries attending COP which encourage
New global trade agreements towards sustainable energy products.
Taxation
Tesla has an opportunity to increase sales volume in countries that are interested in
preserving the environment in which the Governmental incentives for electric automobiles &
impose low taxes on electric vehicles, as this gives it the opportunity to compete at a lower
price with cars that use fuel and that charge higher taxes.
Economic Factors:
Tesla’s business may be threatened by the impacts of many macroeconomic risks, (Tesla Form
10-Q, 2022) which could be summarized as follows:
• worldwide impact from the COVID-19 pandemic which impact the global trading &
Temporary impediments to administrative activities supporting operations also hampered
product deliveries and deployments. In the first and second quarters of 2022, spikes in
COVID-19 cases in Shanghai resulted in the temporary shutdown of Tesla’s Gigafactory
Shanghai, as well as parts of their supply chain.
• As a result of some countries' economic blockades and logistical problems in securing
shipping and supply chains, suppliers may fail to deliver components according to
schedules, prices, quality, and volumes that are acceptable to us, or we may be unable to
manage these components effectively.
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• As a result of above raw material delay and global inflation, Tesla may experience delays
in launching and ramping the production of products and features or may be unable to
control manufacturing costs.
• High inflation rate in USA & Worldwide in 2022.
Projected inflation
rate in the United
States.
Published by Statista
Research
Department,
Sep 30, 2022
Sociocultural Factors
Population growth rate
The population has been growing at unsustainable rate and that acquire increasing in the
transportation, so Tesla has great potential opportunity to boost its financial performance
because of higher customer purchasing power in developing and developed countries.
Consumers’ behaviors
Tesla has growth opportunities based on the rising popularity of low-carbon lifestyles and
increasing preference for renewable energy.
Technological Factors
Tesla has an opportunity to invest in developing countries for their Solar generation & storage
services, as the rabid updates in technologies become a game changer for many developing
countries as solar and wind are abundant, cost-competitive, and a source of reliable power
when combined with battery storage. renewable is one of the lowest cost sources of electricity
for consumers. (World Bank, 2022)
Moreover, the high rate of technological change is an opportunity for Tesla to enhance its
products’ technologies in addition, the increasing popularity of online mobile systems should
prompt the company to increasingly integrate these systems in its EV.
However, the same external factor threatens the company in terms of the potential rapid
obsolescence of technologies used in its products.
Nevertheless, the rarity of earth metals like Lithium, Cobalt, nickel, and manganese
Neodymium and dysprosium which are key components of rechargeable lithium-ion batteries
(LiBs) that power electric vehicles became a strong threat which impact the manufacturing of
EV rechargeable lithium-ion batteries in large scale which is contradicting with the vision of
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Tesla , LiBs became one of the main energy storage solutions in modern electric cars (EVs) ,
and Like fossil oil, lithium is not renewable, with about 14 million tons on land, compared to
230 million tons in seawater (Luong, Tran, & That, 2022)
Technical challenges in LiBs manufacturing and lithium recycling must be overcome to sustain
the deployment of EVs for reducing CO2 emissions.
Legal factors
Tesla has opportunities to safely grow its business overseas due to the regulation & laws in
macro-environment. Laws and legal systems shape managerial decisions and business
development, considering expansions in international patent law; free trade protocols also
help Tesla to emerge in international markets. However, dealership regulations in some of USA
states are causing problems as for the direct sale by Tesla in the domestic USA market (Tesla
Form 10-Q, 2022).
Ecological/Environmental Factors
the global business is subject to the effects of ecological conditions, as awareness and support
for environmentalism increased, the company has opportunities to promote its electric
vehicles, Solar Generation & storage products, based on concerns on climate change, energy
saving programs, and rising standards for waste disposal refer to the physical environment on
earth. Tesla’s electric vehicles, batteries and solar panels are considered suitable in directly
addressing these external factors linked to business sustainability and environmentally friendly
products Tesla has significant growth opportunities based on the nature of its products.
Nevertheless, currently all commercial lithium is sourced from ores and brines on land, which
contains a total lithium reserve of 14 million tons according to the latest survey conducted this
year. As shown in below Figure, the geographic distribution of land-based lithium resources is
uneven, with more than 98% of the total reserves concentrated in Chile, Argentina, China, and
Australia. In addition, lithium extraction from ores and brines has a significant environmental
impact, including water pollution and depletion, soil damage, and air contamination. (Yang,
Zhang, Ding, He, & Zhou, 2018)
Shortage of Future Lithium Supply and the Uneven Distribution

of Current Lithium Resources.
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o Porter’s 5 forces Analysis:

This analysis framework for
understanding the competitive forces at
work in an industry considered, and
which drive the way economic value is
divided among industry actors.
The five forces are First described by
Michael Porter in his classic 1979 Harvard
Business Review article.
A Five Forces analysis can help companies
assess industry attractiveness, how
trends will affect industry competition,
which industries a company should
compete in—and how companies can
position themselves for success.
Threat of New Entrants (moderate)

The threat of new entrants to the EV market is moderate, as the barrier of entry is LOW. Tesla’s
competitors are electric vehicle (EV) start-ups, fossil fuel-powered vehicles, and traditional auto
companies switching to electric cars.
Chinese companies dominate the EV start-ups, including Nio, BYD, Ping, and Li Auto. They have a
better competitive advantage because of their access to the biggest consumer market, well-
established supply chain, and government support.
Meanwhile, US and European companies dominate the traditional automakers and companies
transitioning to electric vehicles. Ford Motors launched an electric Mustang, while GM introduced
the electric Hummer and will go all-electric by 2035. Volvo will go all-electric by 2030, while BMW,
Volkswagen, and Mercedes-Benz will have at least 50% electric vehicle sales by 2035.
However, Tesla is the pioneer in the mass production of electric vehicles. It uses an economy of
scale to lower costs and makes them widely available to everyone. Before Tesla, most electric
vehicle developments were not attractive for commercial sales.
Tesla replicates Henry Ford’s mass production strategy and leverages the momentum of climate
change to commercialize electric vehicles. However, Tesla has to offer more differentiated products
and unique integrated services that no other competitor can match because the threat of new
entrants is high. At the same time, it should strategize on vertical integration to lower supply chain
risk.
China considered as on the biggest markets in the automotive sector, such threat imposes Tesla to
invest in their Gigafactory Shanghai in order to create new opportunities in the Chinese market
share.
Threat from substitute: (Weak)
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The risk of substitutes is remarkably low in car industry as the fuel price is increasing worldwide due
to the current Russian -Ukrainian war, while we have just couple of decisions in the substitution of
auto. for example, strolling or biking that is extremely trouble for long separations, in addition"
public transportation “buses & trains” can be considered as a substitution as well, however
numerous individuals want to have their own auto that is more beneficial. Thus, it gives Tesla a
good opportunity to grow & market its brand through clever marketing rather than the traditional
approach.
Tesla’s high stock valuation reflects high expectations of the future cash flows driven by the growth
of its product pipeline. The high valuation is sustainable if the company stays on track as the leader
in technology innovation, supply chain, and manufacturing excellence
Rivalry Among Existing competitors: (High)

There are only a small number of
significant competitors operating in the
automotive market. However, these firms
are generally aggressive in innovating and
promoting their products. Such
conditions strengthen the effects of
competitors against Tesla, however
Tesla’s Innovation and integrated services
with charging stations spread worldwide
give Tesla an edge over its competitors
also Supply chain improvement, as Tesla
applied already vertical forward
integration, and a commitment to
continuous improvement support lower
costs and high profits. Low cost is an
attractive attribute for competitive
advantage along with brand loyalty.
Tesla owns a 1.2% market share of the
overall automobile market and 14.55% of
the global electric vehicle market.
(Statista, 2022)
Bargaining power of suppliers: (High)

The bargaining power of suppliers is HIGH due to a limited supply chain network. The electric
vehicle industry is relatively new and in the development stage. Today, the majority of Tesla vehicle
parts come from German suppliers. Any disruption in the German economy, such as COVID-19
lockdown and energy shortage, will negatively impact Tesla’s production.
Therefore, Tesla constructs the Gigafactories in the US, Asia, and Europe to lower the bargaining
power of suppliers. The strategy will shorten the supply chain network, bring production and market
closer together, minimize shipping costs, and avoid supply chain disruption due to COVID-19.
Recently, the computer chip shortage has disrupted the auto industry and shut down major US
manufacturers such as GM and Ford. However, Tesla avoided the production shutdown by re-
writing the software code to support different chip suppliers (The Verg, 2021). It shows Tesla can
remain agile despite the high bargaining power of suppliers.
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Bargaining power of consumers: (low)

The bargaining power of buyers is LOW, in contrast to existing automakers, Tesla sold and serviced
its cars through the Internet and its own Tesla stores. Tesla segments its products at the high-end
market with premium pricing. Tesla competes in the luxury market because of intense competition
in the low-end market. The critical source of sustainable competitive advantage to successfully
compete in the high-end market is differentiation, offering products and services that no one else
can.
The electric carmaker is currently leading in speed, safety, battery life, and autopilot system.
In this regards, Tesla Model X and Model S cars with Ludicrous mode were getting longer ranges
and faster acceleration times thanks to a battery upgrade, the new and improved Tesla cars stack
up to the competition when it comes to price, range, horsepower, and speed. (Business Insider,
2016).
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o Competitive Profile Matrix

The Competitive Profile Matrix (CPM) is a tool that compares the firm and its rivals and reveals their
relative strengths and weaknesses. CPM is a powerful strategic analysis tool. CPM allows business
owners, stockholders, and other interested parties to see the strengths and weaknesses of all major
competitors in an industry on a single page. This helps visualize and communicate the competitive
landscape.
It’s clearly obvious that EV & clean Energy market

industry is going through a big innovation process
presently, the power structures are being
rearranged which offers new opportunities for
car producer but also creates tensions.
Tesla is the most valuable automobile brand with
a market capitalization of $1.01 Trillion as of
October 25, 2021, which is the sum of the ten
world’s largest automakers combined. However,
Tesla’s market share is only 1.2%, with 900,000
vehicle deliveries vs. 75 million vehicles of the
global output in 2021. (wolf street, 2021)
Tesla and their rapid ascent to the top of the
global automobile business, they somehow manage to spend $0 on advertising year after year, they
rely on their brand name & word of mouth.
On the flip side, Tesla is spending an average of $2,984 per car sold on research and development
(R&D)—often triple the amount of other traditional automakers.
Comparing tesla
spending on R&D
and marketing per
car to other
automakers
Published by
(Ali, 2021)
Competitive Profile Matrix CPM
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TESLA VW GM
Critical Success Factor Weight
Rating Score Rating Score Rating Score
Advertising campaign 8% 1 0.08 3 0.24 2 0.16
Product Qualification 10% 4 0.32 2 0.16 3 0.24
Product Variety 8% 4 0.32 1 0.08 1 0.08
Price competitiveness 12% 3 0.24 4 0.32 3 0.24
Production Economy of scale 10% 4 0.32 3 0.24 2 0.16
Research & development 10% 4 0.32 1 0.08 3 0.24
Global Expansion 8% 4 0.32 3 0.24 2 0.16
Distribution Efficiency 8% 3 0.24 3 0.24 3 0.24
Brand Reptation 8% 4 0.32 3 0.24 3 0.24
Financial position 8% 4 0.32 3 0.24 4 0.32
Customer Loyalty 5% 4 0.32 2 0.16 2 0.16
Market share 5% 4 0.32 3 0.24 2 0.16
Total 1.00 3.44 2.48 2.4
As shown in CPM results, Tesla has advantageous position between competitors, the weighted
score of competitive advantage of Tesla is 3.44, which is much greater than other competitors.
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o EFAS External Factor Analysis Summary

EFAS model is utilized to organize the Macro environment & external factors of microenvironment
into the generally accepted categories of opportunities & threats.
Following is the Opportunities & threats imposed on Tesla, Inc. in EV & clean Energy industry,
using EFAS model to conclude the overall score as follows:
Key External Factor
Weighted
Opportunities Weight Rating
score
Governments' trend to deploy clean energy &
O1 10% 4 0.40
Electrical Vehicle.
Consumers' behavior, Ecofriendly lifestyle trend &
O2 5% 4 0.20
Bargaining power of consumers
O3 Technological rabid change & Innovations 10% 3 0.30
Strong future growth for FMA of EVs to grow
O4 10% 3 0.30
Market share in the overall automotive industry
Remarkably law substitute of EV & Clean Energy
O5 5% 3 0.15
products
Threats
Dealership regulations in some states of USA in
T1 5% 2 0.10
domestic market affect direct sale of Tesla
Aggressive Competitors strategy in innovating and
T2 10% 4 0.40
promoting their products
Inflation rate impact on material cost & Price
T3 5% 3 0.15
control
Bargaining power of suppliers & shortage of
T4 15% 3 0.45
microchips
Defects of Supply chain affected by COVID-19
T5 10% 4 0.40
pandemic & economic blockades.
T6 Rarity of main component of Lithium-ion batteries 15% 3 0.45
Total 1.00 3.30
As per the result from the EFAS we get total score 3.30, Thus, External Environment is Favorable.
Despite all the threats, Tesla is structured as an agile technology company, which gives the vital
agility to respond to threats and opportunities quickly ahead of its competitors. for example: Tesla
constructs Giga factories in US, Asia, and Europe to lower the bargaining power of suppliers &
shorten the supply chain network.
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Internal Environmental Evaluation:

o Financial Analysis
Financial Analysis is based on data published by Telsa, Inc. for Quarterly period ending Sep. 2022 (Tesla, Inc. Form 10-Q,
2022) & Fascial year 2021 (Tesla, Inc. FORM 10-K, 2021) & Fascial year 2020 (Tesla, Inc. Form 10-K, 2021) , compared to
average ratios of automotive industry (Macro trend, 2022) (CSIMarket, 2022).
Financial Data Published by Tesla, Inc. in the Annual Fiscal year Reports submitted to United States
Securities and Exchange Commission For years 2019-2022.
Table 1: Consolidated Statements of Operations (Income Statement) (P&L) during the period 2019-20212
in millions USD (except per share data)
Q3 2022 Q3 2021 FY 2021 FY 2020 FY 2019
Automotive revenues 50,155.00 31,265.00 47,232.00 27,236.00 20,821.00
Energy generation, storage,
6,989.00 4,839.00 6,591.00 4,300.00 3,757.00
services & other Revenue
Total Revenue 57,144.00 36,104.00 53,823.00 31,536.00 24,578.00
Cost of goods sold 42,068.00 27,354.00 40,217.00 24,906.00 20,509.00
Gross Profit 15,076.00 8,759.00 13,606.00 6,630.00 4,069.00
Interest expenses 158.00 300.00 371.00 748.00 685.00
Research and development
2,265.00 1,853.00 2,593.00 1,491.00 1,343.00
Expenses
Operating income (EBIT) 9,755.00 3,910.00 6,523.00 1,994.00 -69.00
Net income 8,869.00 3,301.00 5,519.00 721.00 -862.00
Average no of shares 3,474.00 1,130.00 1,129.00 1,083.00 887.00
EPS, common Stockholder 2.55 0.95 1.63 0.21 -0.33
Net profit as % of sales 17.68% 10.56% 11.68% 2.65% -4.14%
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Table 2: Consolidated Balance Sheets during the period 2019-2021

in millions USD
Sep. 2022 Q3 2021 Dec. 2021 Dec. 2020 Dec. 2019
Account Receivable 2,192.00 1,962.00 1,913.00 1,886.00 1,324.00
Inventory 10,327.00 5,199.00 5,757.00 4,101.00 3,552.00
Current assets 35,990.00 25,002.00 27,100.00 26,717.00 12,103.00

Cash and cash
19,532.00 16,065.00 17,576.00 19,384.00 6,268.00
equivalents
Current assets without
25,663.00 19,803.00 21,343.00 22,616.00 8,551.00
inventory
Non-Current Assets 38,436.00 32,832.00 35,031.00 25,431.00 22,206.00
Total assets 74,426.00 57,834.00 62,131.00 52,148.00 34,309.00
Account Payable 13,897.00 8,260.00 10,025.00 6,051.00 3,771.00
Current liabilities 24,611.00 18,051.00 19,705.00 14,248.00 10,667.00
Total Liabilities 33,302.00 29,340.00 30,548.00 28,418.00 26,199.00
stockholders' equity 39,851.00 27,053.00 30,189.00 22,225.00 6,618.00
Long-term Debt 2,096.00 6,438.00 5,245.00 9,556.00 11,634.00
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Financial Ratio Analysis for Tesla, Inc.

Its Industry Median Values (Automotive) For Years 2019-2022, including 2022 Industry
Cross-
Industry Sectional
Tesla Tesla Tesla Tesla Tesla Performance
Financial ratio Average with Overall Evaluation
Q32022 Q32021 FY2021 FY2020 FY2019 Time-Series
2022 industry
2022
A- Liquidity Ratios
Values tends to increase, A higher current ratio
Current Ratio 1.46 1.39 1.38 1.88 1.13 1.08 Good Good indicates a greater degree of liquidity, & the
firm’s ability to meet its short-term obligations
Values tends to decline, indicate that Many

Quick Liquidity
1.04 1.10 1.08 1.59 0.80 1.00 Fair Good types of inventories cannot
Ratio
be easily sold.
Values tends to Low; Firm may have difficulty

Cash Ratio 0.79 0.89 0.89 1.36 0.59 0.50 Fair Good
meeting current obligations
B- Financial Leverage (Solvency) Ratios

Values tends to decline, the decline this ratio,
the less the firm’s use of financial leverage
Debt Ratio 0.45 0.51 0.49 0.54 0.76 0.499 Good Good through Equity, it's indication that a company
is not taking sufficient advantage of financial
leverage to increase profits.
Values tends to decline, it’s indication that the
Debt-to-equity
0.84 1.08 1.01 1.28 3.96 1.41 Good Good company able to generate enough cash to
ratio
satisfy its debt obligations.
Values tends to increase, the higher its value,
Interest coverage
61.74 13.03 17.58 2.67 -0.10 2.00 Good Good the better able the firm is to fulfill its interest
ratio (ICR)
obligations
18 | P a g e
Cross-
Tesla Tesla Tesla Industry Sectional
Tesla Tesla Performance
Financial ratio Q3- Q3- FY- Average with Overall Evaluation
2020 2019 Time-Series
2022 2021 2021 2022 industry
2022
C- Profitability Ratio
Values tends to increase; Firm may have better thought
Gross profit
26.38% 24.26% 25.28% 21.02% 16.56% 18.10% Good Good to control costs, increase efficiency during the
margin
production process
Operating Profit
Values tends to increase; Firm may have better thought
margin (Return 17.07% 10.83% 12.12% 6.32% -0.28% 6.56% Good Good
to control operation expenses
on sales)
Values tends to increase, the higher the firm’s return on
Return on Asset total assets, the better, indicate the overall
11.92% 5.71% 8.88% 1.38% -2.51% 10.88% Good Good
(ROA) effectiveness of management in generating profits with
its available assets.
Values tends to increase, the owners are better off the
Return on Equity
22.26% 12.20% 18.28% 3.24% -13.03% 34.26% Good Good higher is this return, it measures the return earned on
(ROE)
the common stockholders’ investment in the firm
The company is more efficient at converting sales into
Net profit margin 15.52% 9.14% 10.25% 2.29% -3.51% 3.96% Good Good
actual profit.
D- Asset Management (Activity) Ratio
Values tend to increase, the higher a firm’s total asset
Asset turnover 0.77 0.62 0.87 0.60 0.72 0.65 Good Good
turnover, the more efficiently its assets have been used
Average
Values tend to increase; an analyst would give the firm
Payment Period
172 157 130 127 96 60 Fair Fair a low credit rating because it was taking too long to pay
Payable turnover
its bills
(days)
Average Values tend to decline, indicate a Good managed credit
Collection Period department, collection department, the better the
14 20 13 22 20 10.74 Good Good
- Receivable company is in terms of collecting their accounts
turnover (days) receivables
Values tends to decline, indicate the degree of activity
Inventory the firm gain sales out of its inventory, decreasing value
4.1 5.3 7.0 6.1 5.8 12 Fair Fair
turnover (days) indicate that Many types of inventories cannot be easily
sold.
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Quarter Financial Charts & key Metrics graphs represented in Tesla Q3-2022 update report
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o McKinsey 7s Framework
First introduced by Tom Peters and Robert Waterman in

their bestselling book “In search of excellence”, The
McKinsey 7s model is a strategic tool and framework that
helps managers and businesses assess their performance.
The McKinsey 7s model identifies 7 key elements for an
organization that need to be focused and aligned for
successful change management processes as well as for
regular performance enhancements.
1. Hard elements
The hard elements of the McKinsey 7s model comprise of
strategy, structure, and systems. The hard elements of the
model are easier to identify, more tangible in nature, and
directly controlled and influenced by the leadership and
management of the organization.
2. Soft elements
The soft elements of the McKinsey 7s model, in turn, include shared values, staff, Style, and skills.
These elements are less tangible in nature and are more influenced by the organizational culture.
As such, the management does not have direct influence or control over them. These elements are
also harder to describe and directly identify – but are equally important for an organization’s
success and improved performance.
1. Hard Elements
1.1. Strategy
1.1.1Clearly defined
Tesla’s overall business strategy and strategic direction are clearly defined and communicated
to all stakeholders and employees. This makes it easier for the company to manage
performance, direct actions, and develop various strategies that are in line with the business
strategy. In addition, Tesla Motors' operations are made more transparent and the company's
responsibilities and actions are aligned thanks to the definition and communication of the
business strategy.
1.1.2. Directing behavior to achieve goals
Helping the company guide employee, staff, and stakeholder behavior toward the attainment
and achievement of goals is another important function of Tesla’s strategic direction. In
accordance with the business strategy, SMART Goals are established with both short- and long-
term deadlines. Employees can use the business strategy to decide on strategies and conduct
that will help the company grow.
1.1.3. Competitive pressures
The strategy of Tesla Motors also considers the activities and pressures of competitors in the
market. The strategy suggests measures and actions to address competition through strategic
tactics and activities that ensure Tesla’s sustainability by adapting to market changes and
changing consumer demands and trends.
1.1.4. Changing consumer demands
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Tesla’s strategy is important because it constantly considers changing consumer trends and
needs, changing consumer market patterns, and changing consumer behavior. As it enables
Tesla to remain competitive and relevant to its target consumer groups, as well as to identify
demand gaps in the consumer market, this is an essential component of the company's
strategic direction.
The company then uses product offerings and marketing strategies to strategically fill these
gaps, making it successful and ahead of other patterns in the market.
1.1.5. Flexibility and adaptability
The Tesla strategy is adaptable and flexible. At Tesla, this is a crucial component of the
company's strategic planning and direction. When a company or business's strategy is rigid, it
frequently results in stagnation and hinders progress in response to shifting consumer
markets.
Tesla Motors is able to benefit from rapidly responding to shifting consumer patterns
worldwide thanks to its flexibility and adaptability. It is also able to adapt its products locally
and culturally through localization for various countries and regions. In addition, the business
frequently has the ability to anticipate consumer market shifts in advance and make strategic
adjustments to adapt to them (Harvey, 2022).
On the other hand, Tesla needs to build a balance between short run cost savings and
protecting its core competitive advantage. Customers perceive Tesla products and services to
deliver ‘value for money’ proposition plus a bit extra. In its zest to gain more market share
through competing on prices, Tesla should avoid cutting costs that can result in inferior
product and service delivery.
Tesla should effectively apply a sustainability focused sourcing in order to reduces the cost of
doing business, reduce the overall operational expenses, simplify supply chain, find reliable
partners, & helps the organization to source better quality material.
1.2. Structure
1.2.1 Organizational hierarchy
The learning and forward-thinking organizations at Tesla support the company's flatter
organizational structure. Employees feel more secure and confident and have greater access to
information when there are fewer managerial levels between them and more access to senior
management and leadership. In addition, Tesla is able to make decisions more quickly thanks
to the lower hierarchy, which also increases employee commitment to the organization.
1.2.2. Coordination among departments
Tesla has excellent departmental coordination. For projects and tasks that require multiple
areas of expertise, the departments of the company frequently form interdepartmental teams.
All departments' coordination is efficient and well-organized. In order to guarantee efficient
work procedures, processes, and the achievement of goals, Tesla Motors employs a
methodical procedure for initiating and monitoring coordination among departments.
1.2.3. Dynamics of the internal team (department-specific)
Tesla encourages teamwork and tasks geared toward the team. The company also assigns
individual responsibilities and job tasks to jobs that require individual attention and scope.
However, it is expected of all Tesla employees to be team players who are able to collaborate
effectively with others and through them. The teams at Tesla Motors support each other and
work together to achieve the broader team objectives and goals in accordance with the
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company's strategy and values.

1.2.4. Comparison of centralization and decentralization
Tesla employs a hybrid centralization and decentralization structure. Tesla, like a lot of
progressive organizations, largely supports decentralized decision-making. At Tesla, job roles
are meant to be done with responsibility, and employees frequently set their goals with the
help of their supervisors.
However, Tesla Motors is also centralized in ensuring that employees' efforts and tactics are
aligned with the company's values and strategy by ensuring that supervisors approve of them.
1.2.5. Communication
Tesla has a well-developed and intricate system for ensuring that employees and various
managerial levels communicate with one another. The overall organizational structure is
improved by Tesla Motors' communication systems. The systematic, defined, and organized
communication ensures that no organizational tasks or objectives are compromised by
misunderstandings or lack of communication. Additionally, it facilitates the easy flow of
information.
On the other hand, the pandemic has questioned the current structure and supply chain
management of the company. To be more resilient organization and prepare itself for future
disruption of similar magnitudes Tesla should focus on – diversifying suppliers geographically
so that climate related, geopolitical, and other disruptions don’t impact the long-term survival
of the company.
Reduce the dependence on China – As the trade war between US and China is getting
aggressive, it should reduce its dependence on supply chain emerging out of China. This will
help the organization to diversify risks, avoid regulatory problems etc.
To achieve the above two goals – Tesla needs to fine tune its organization structure. It needs
to have smaller teams, easy reporting to the headquarters, and enabling teams to take
decisions based on real time developments.
Employees complained that top managers have No real automotive backgrounds to guide
things in the right direction. Most management is ego driven. They refuse to listen to
employees that could actually help management shine management is entirely haphazard,
taking on different forms within each team. This results in horrible communication.
1.3. Systems
1.3.1. organizational Systems
Tesla has well-defined systems in place to ensure that business operations are effectively
managed and that there are no disagreements or conflicts. The majority of Tesla’s systems are
departmental, and they include, for instance:
- Human asset the executives, Finance, Showcasing, Tasks, Deals, Production network the
executives, Public Connection The executives, Vital administration.
1.3.2. Defined controls for systems
Each of Tesla defined and delineated systems has specialized controls for assessing
performance and achievement of goals. Based on the nature of their duties and
responsibilities, these controls and measures are tailored to each department. In addition, for
members' performance evaluation and interdepartmental tasks and responsibilities, each
department develops its own unique controls.
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1.3.3. Monitoring and evaluating controls

Controls are monitored and evaluated by Tesla Motors continuously through the designed
controls. This performance monitoring is ongoing and continuous. The majority of this is
accomplished through informal discussions and observation. Informal feedback is frequently
provided to employees and department heads as needed. In addition, formal performance
evaluations are carried out every quarter or every half year, depending on the necessity and
urgency of the projects and tasks that have been assigned. Supervisors and managers go
through this formal procedure to make sure that performance gaps are found and that
suggestions for improvement are made.
1.3.4. Internal processes for organizational alignment
Tesla also has special processes and methods for making sure that all of the organization's
departments and systems are working together to achieve the bigger business goals. This is
made possible by making sure that every system is designing and working toward goals and
targets that are specific to their expertise within the larger business strategy and vision. In
addition, Tesla Motors' strategic leadership sets specific goals to achieve comparable business
objectives in any given period and ensures that all systems are allocated resources.
On the other hand, Tesla needs to focus on the following areas – Improve internal processes,
such as risk management, Customer Relationship Management (CRM), web app optimization,
and data visualization across the organization.
Tesla needs to put in place robust system for “work from home” employees so that there can
be greater interaction among the employees both online and in physical environment. It will
not only improve productivity but also increase the data security and cyber security.
2. Soft Elements
2.1. shared values
2.1.1 Core values,
the company's core values are defined and communicated to foster a creative and supportive
organizational structure that will improve employees' motivation and commitment to the
company as well as their ability to perform at their best. At Tesla Motors, the company's core
values include, but are not limited to:
Creativity, Honesty, Transparency, Accountability, Trust, Quality, Heritage.
Tesla also ensures that all of its activities and operations are carried out in accordance with
high ethical and moral standards that have been redefined and compared to international
standards.
2.1.2. Corporate culture
Tesla celebrates diversity and encourages inclusion. Tesla ensures that its organizational
culture supports diversity and has internal policies to reduce instances of discrimination
because the company has a global presence and production units spread across multiple
countries.
The corporate culture at Tesla Engines likewise supports development and innovativeness by
permitting autonomy for development to people and groups - in this way assisting them with
refining their vocations as well as characters. Last but not least, Tesla’s corporate culture
features supportive leadership that promotes visibility and accessibility in order to boost
employee motivation and job satisfaction.
2.1.3. Task alignment with core values
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Tesla ensures that all job roles and tasks adhere to the company's core values. This indicates
that Tesla Motors will adhere to its core values in all activities, strategies, and strategic tactics
it employs. This is to guarantee an honest organizational culture and a consistent, dependable
brand image. The company will continue to ensure that all change management procedures
and methods incorporate the core values in the event of organizational change to ensure that
the organizational culture is consistently maintained and, if necessary, systematically altered.
On the other hand, the organization has built a successful business model based on its core
values, vision, and mission. It doesn’t have to change much in the shared values segment. One
area where it can focus more is – sustainability. Investors are putting a lot of stress on
Environmental, Social, and Governance issues, so it can bring more transparency by using the
Triple Bottom Line concept in its ESG and financial reporting. (EMPAPRO, 2022) As Tesla is not
performing well in its current ESG score with risk rating 28.6 (medium risk) ranked as 55th out
of 86 in automotive industry & 8773 out of 15058 in global universe (Company ESG Risk
Ratings, 2022).
2.2. Style
2.2.1. The management and leadership style
Tesla is able to involve its employees in the decision-making process and managerial decisions
by employing a participative leadership style. In addition, this enables the leadership to
regularly interact with employees and various managerial groups to identify potential conflicts
and obtain feedback on strategic operations and tactics. Tesla is able to increase employee
motivation, organizational commitment, and ownership among employees and other
stakeholders through its participative leadership.
2.2.2. Effectiveness of leadership style
The participative leadership style is highly effective at achieving the organization's business
objectives and vision. Employees feel like they are contributing members of the organization
and that their ideas, feedback, and input are valued. In addition, leaders and managers at Tesla
are able to identify current and potential conflicts within the organization through participative
leadership and actively work to resolve them as soon as possible.
2.2.3. Competition versus cooperation – internally
Tesla encourages internal collaboration and cooperation among employees, systems, teams,
and departments thanks to its supportive and encouraging organizational culture. Due to the
global nature of Tesla’s operations and the fact that tasks and responsibilities within the
company frequently necessitate interdepartmental feedback and input, this cooperation and
collaboration is crucial. In addition, the company frequently forms project teams as a result of
increased expansion and synergy. These teams function effectively as a result of the
cooperative and collaborative culture that exists within the Tesla organization.
2.2.4. Teams versus groups
Tesla collaborates with internal teams to accomplish its various business goals and objectives
and complete tasks. The leadership of the company offers a motivating and practical vision for
achieving the company's goals. Both the training provided by the company and the system for
managing human resources help all employees grow fairly and openly. Instead of nominal
groups within the organization for various projects and department-specific tasks and roles,
this results in effective team formation.
On the other hand, the leadership styles required in the physical location and in remote
scenario are completely different. In a physical environment manager can stop by a chat,
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provide inputs, and go through the work. But in the remote locations’ employees have to work
in far more isolated environment. To improve the workflow – leaders should pursue
collaborative and inclusive form of leadership. Leaders should build smaller teams as part of
larger teams.
The CEO is working as micro-manager and singlehandedly derails production, reduces product
quality, makes hundreds of people have to work much harder, and causes massive waste
because he wants to see every little detail and change those details at literally the last-minute
tactics (MARKHAM, 2020).
2.3. Staff
2.3.1. Connection between business objectives and employee skill level
Tesla employs a sufficient number of people across its global operations. Depending on the
urgency and required skill levels, employees for various job roles and positions are hired
internally and externally. As a result of this, it can be seen that Tesla Motors employs workers
who possess the skills necessary for their positions. In order to familiarize themselves with the
business and its values, in-house training is provided to all employees. In order to raise skill
levels, both internal training and external training are provided.
As a result, Tesla’ employee skill level is sufficient to achieve the company's business objectives
because all job roles and positions are intended to facilitate their achievement.
2.3.2. Number of employees
Tesla has a substantial workforce. The necessities and needs of the business as well as its
operations determine the number of employees in each country. The global Tesla team is
inclusive, welcoming, and supportive of diversity, and it collaborates with its members to
achieve business objectives. The most crucial factor in Tesla’s business success is its workforce
and team members.
2.3.3. Lack of necessary capabilities and capacities Tesla has a well-defined method for
determining the organization's potential capabilities and capacities requirements. The
business's human resource department uses a methodical approach to align all other
departments in order to find vacant positions or skill gaps. The human resources department
makes plans for temporary or permanent hires, as well as, if necessary, training sessions for
the existing workforce, depending on the nature of the need.
2.3.4. Some of the steps Tesla can take in to improve the human resources are –
Recruitment and remote onboarding – Because of the pandemic, a lot of employees are
working from remote locations. To make the environment more inclusive for the new
employees, Tesla should build system for remote onboarding such as – catalog of short videos,
small groups interaction, technical demonstrations.
Open chats for the people to approach people at various levels in the hierarchy. It will not only
help the top management to directly interact with the people below but also help in building
an open and transparent culture.
On the other hand, some of the steps Tesla can take in to improve the human resources are
Recruitment and remote onboarding – Because of the pandemic, a lot of employees are
working from remote locations. To make the environment more inclusive for the new
employees, Tesla should build system for remote onboarding such as – catalog of short videos,
small groups interaction, technical demonstrations.
Open chats for the people to approach people at various levels in the hierarchy. It will not only
help the top management to directly interact with the people below but also help in building
26 | P a g e
an open and transparent culture.

Tesla has a Stressful Work Environment (MARKHAM, 2020), may come at the cost of employee
wellbeing. Long hours and lack of proper staffing led to burnout This is causing employees to
leave the company. Tesla has an even high turnover rate than Amazon. At 2019 their
annualized executive turnover rate of 27% for staff & 44% in executives reporting directly to
CEO Elon Musk. (marketwatch, 2019 )
2.4. Skills
2.4.1 Skills of the workforce
Tesla has a commendable workforce with high capacities and skills. All employees are hired
based on their qualifications and merit. Tesla takes great pride in hiring and developing the
best professionals to help them advance.
2.4.2. Skills versus job requirements for employees
Tesla hires and trains employees based on their skill levels in relation to specific tasks and job
roles. The company ensures that all job requirements are met and that employees have the
skills necessary to perform their duties in accordance with Tesla Motors' values, culture, and
business objectives.
2.4.3. Management of skills
Tesla places a special emphasis on improving the abilities and skills of its employees. In order
to provide its employees with opportunities for growth and development, it organizes regular
internal and externally managed workshops and training. Tesla collaborates with its employees
to foster personal and professional development.
2.4.4. One of the most important competitive advantages of the company is its human
resources. At Tesla, employees' skills are developed specifically for job roles and requirements,
giving the company a competitive advantage over competitors because players cannot
duplicate employee training or skills. Tesla gains a distinct and non-transferable capability as a
result.
2.4.5. Tesla can build a structured training and development program for people working from
remote locations, Tesla can hire fresh talent as more and more people are leaving their
existing jobs because they are not challenging them enough.
On the other hand, Tesla can build a structured training and development program for people
working from remote locations.
Tesla can hire fresh talent as more and more people are leaving their existing jobs which is
clearly obvious in their high employee turnover rate.
Employees complained a lot about Tesla's management tactics (MARKHAM, 2020) & consider
that it has Poor Management approach of pure top-down model (Autocratic leadership) with
all its major cons. Top-down management style is not best for businesses struggling to
implement change effectively. With only the senior executives making decisions, their
conclusions may be seen as lacking creativity and being harmful to overall performance.
Tesla should implement elements of the Bottom-up management style throughout their
hierarchy, allows all levels of an organization to become a part of the process and helps make
everyone feel a large part of the goal. This can help build morale and improve productivity.
Employees are more open to work and strive harder to reach goals and objectives in the ways
that work best for them.
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Bottom-up management styles allow for the full talents of employees to be used. A lower-level
employee may have unique insight on how to solve a common problem. Employees can share
their solutions and perhaps pass them on to others in their team. This kind of collaboration can
improve processes in new ways. (Top-down vs. Bottom-up Management Styles, 2015 )
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o Internal Factor Analysis Summary (IFAS)

IFAS model is utilized to organize the internal factors of microenvironment into the generally
accepted categories of Strengths & Weaknesses, Following is the Strengths & Weaknesses of
Tesla, Inc., using IFAS model to conclude the overall score as follows:
Key Internal Factors
Weighted
Strengths Weight Rate
score
Efficiency of energy. using electricity as a source of its
transportation products & Solar Systems complete products
S1 5% 4 0.20
range as a source of clean & renewable Energy Services &
Infrastructure.
The finance position & the sales of Tesla have significantly
S2 8% 3 0.24
increased over the past years and the chart is continuously rising.
The image of the brand in the customer's eye is excellent & well
S3 8% 3 0.24
recognized.
The design, idea and innovation in the products being
S4 8% 4 0.32
manufactured by the company.
S5 Internalize Battery production. 6% 3 0.18
FMA, with high R&D capabilities, continues innovation for new
S6 8% 4 0.32
product pipeline.
Diversified Manpower & management with a good culture &
S7 5% 2 0.10
core value.
Economy of scale for SKU Model 3 manufactured in Gigafactories
S8 8% 4 0.32
around the Globe.
S9 Forward integration of direct distribution to customers. 6% 2 0.12
Weaknesses
Poor communication between teams & middle management,
W1 Stressful Work Environment, and potential burnout are visible in 8% 2 0.16
multiple aspects of the organization.
Poor Management approach of pure top-down model
W2 5% 4 0.20
(Autocratic leadership) with all its major cons.
W3 ESG score is medium risk with negative impact on investors. 5% 3 0.15
CEO is working as micro-manager, Sole Representative, eager to
W4 5% 2 0.10
details which derails production, reduces productivity
Turnover in senior leadership raises questions that weaken the
W5 confidence of the stock market and, most likely, also contribute 5% 3 0.15
internally to production delays.
Lack of risk management implementation as new production
W6 5% 4 0.20
delays are evident.
W7 Lack of Customer Relationship Management (CRM) 5% 3 0.15
Total 1.00 3.15
As summary of internal Scanning, Tesla invests in R&D as First Mover Advantage company,
along with high-capacity production in its new gigafactories, on the other hands Tesla has a lot
of HR defects which need a tremendous effort for improvement, IFE model result shows
strengths is well managed & most weaknesses points could be improved, Thus, Internal
Environment of Tesla, inc. is Strong to compete in the industry.
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Matching & Strategy Generation phase

o SWOT Analysis
SWOT Analysis
Strengths Weaknesses
1. Efficiency of energy. using electricity as a 1. Poor communication between teams &
source of its transportation products & Solar middle management, Stressful Work
Systems complete products range as a Environment, and potential burnout are visible
source of clean & renewable Energy Services in multiple aspects of the organization.
& Infrastructure. 2. Poor Management approach of pure top-
2. The finance position & the sales of Tesla down model (Autocratic leadership) with all its
have significantly increased over the past major cons.
years and the chart is continuously rising. 3. ESG score is medium risk with negative
3. The image of the brand in the customer's impact on investors.
eye is excellent & well recognized. 4. CEO is working as micro-manager, Sole
4. The design, idea and innovation in the Representative, eager to details which derails
products being manufactured by the production, reduces productivity.
company. 5. Turnover in senior leadership raises
5. Internalize Battery production. questions that weaken the confidence of the
6. FMA, with high R&D capabilities, stock market and,
continues innovation for new product most likely, also contribute internally to
pipeline. production delays.
7. Diversified Manpower & management 6. Lack of risk management implementation as
with a good culture & core value. new production delays are evident.
8. Economy of scale for SKU Model 3 7. Lack of Customer Relationship Management
manufactured in Gigafactories around the (CRM
Globe.
9. Forward integration of direct distribution
to customers.
Opportunities Threats
1. Governments' trend to deploy clean 1.Dealership regulations in some states of USA
energy & Electrical Vehicle. in domestic market affect direct sale of Tesla.
2. Consumers' behavior, Ecofriendly lifestyle 2. Aggressive Competitors strategy in
trend & Bargaining power of consumers. innovating and promoting their products.
3. Technological rabid change & Innovations. 3. Inflation rate impact on material cost &
4. Strong future growth for FMA of EVs to Price control.
grow Market share in the overall automotive 4. Bargaining power of suppliers & shortage of
industry. microchips.
5. Remarkably law substitute of EV & Clean 5. Defects of Supply chain affected by COVID-
Energy products. 19 pandemic & economic blockades.
6. Rarity of main component of Lithium-ion
batteries.
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o TOWS Matrix
Strengths Weaknesses
S1. Efficiency of energy. using electricity as a source of its W1. Poor communication between teams & middle
transportation products & Solar Systems complete products range management, Stressful Work Environment, and potential
as a source of clean & renewable Energy Services & burnout are visible in multiple aspects of the organization.
Infrastructure. W2. Poor Management approach of pure top-down model
S2. The finance position & the sales of Tesla have significantly (Autocratic leadership) with all its major cons.
Internal increased over the past years and the chart is continuously rising. W3. ESG score is medium risk with negative impact on
Scanning S3. The image of the brand in the customer's eye is excellent & investors.
well recognized. W4. CEO is working as micro-manager, Sole Representative,
S4. The design, idea and innovation in the products being eager to details which derails production, reduces productivity
manufactured by the company. W5. Turnover in senior leadership raises questions that
External S5. Internalize Battery production. weaken the confidence of the stock market and,
Scanning S6. FMA, with high R&D capabilities, continues innovation for new most likely, also contribute internally to production delays.
product pipeline. W6. Lack of risk management implementation as new
S7. Diversified Manpower & management with a good culture & production delays are evident.
core value. W7. Lack of Customer Relationship Management (CRM)
S8. Economy of scale for SKU Model 3 manufactured in
Gigafactories around the Globe.
S9. Forward integration of direct distribution to customers.
Opportunities OS Strategies WO Strategies
O1. Governments' trend to deploy clean energy & S3,S5,S8,O2,O4,O5.: Deploy a Market Penetration strategy O1, O3, W1, W2, W5: Deploy a Corporate Joint
Electrical Vehicle.
O2. Consumers' behavior, Ecofriendly lifestyle trend & to increase market share by target new customer segments. Venture/Partnering strategy with governments &
low Bargaining power of consumers. S2,S4,S6,O2,O3.: Deploy a Product Development strategy technical universities to enhance HR process by apply
O3. Technological rabid change & Innovations. to increase sales by developing new innovated products. talent acquisition program.
O4. Strong future growth for FMA of EVs to grow S1,S6,S7, S9, O1,O5.: Deploy a Market Development O1, O2, O5, W5: Deploy a Market Development strategy
Market share in the overall automotive industry.
O5. Remarkably law substitute of EV & Clean Energy
strategy to increase sales by targeting new countries & to involves expanding Tesla's current product line into
products. with SLA with remote retailer in new counties new new regions, thereby increasing inventory turnover
innovated products. through numerous opportunities.
Threats ST strategies WT strategies
1.Dealership regulations in some states of USA in S2, S4, S5, T3, T4, T5, T6.: Deploy a Backward integration O1, O3, W1, W2, W5: Deploy a Corporative Joint
domestic market affect direct sale of Tesla.
2. Aggressive Competitors strategy in innovating and Strategy to minimize the bargaining power of suppliers & Venture/Partnering strategy with Consultants for HR &
promoting their products. Increase control of Supplied Raw Material (LiBs, Microchips) Risk assessment to enhance HR process by engaging the
3. Inflation rate impact on material cost & Price by investing in raw material manufacturing & to develop employee in reward scheme.
control. alternate solutions.
4. Bargaining power of suppliers & shortage of
microchips.
5. Defects of Supply chain affected by COVID-19
pandemic & economic blockades.
6. Rarity of main component of Lithium-ion batteries.
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o Space Matrix
SPACE matrix is a strategic management tool used to analyze a company to determine what type of a
strategy a company should undertake.
Following is the Space matrix applied on Tesla, Inc & its industry for EVs & Solar Energy.
Financial Position FP Rate Stability Position SP Rate
ROI 6 Technological changes -1
Leverage 5 Rate of inflation -1
Liquidity 4 Demand variability -2
Working Capital 6 Price range of competing products -3

Cash flow 5 Barriers to entry into market -5
Inventory Turnover 2 Competitive pressure -5
Earnings per share 5 Ease of exit from market -2
Price earnings ratio 4 Price elasticity of demand -2

Risk involved in business -1
Average 5 Average -2
Competitive Position CP Rate Industry Position IP Rate
Market Share -1 Growth potential 5
Product Quality -1 Profit potential 6
Product Life Cycle -2 Financial stability 5
Customer Loyalty -1 Extent leveraged 4
Capacity Utilization -2 Resource utilization 2
Technological Know-how -1 Ease of entry into market 4

Control over suppliers and
-3 Productivity, capacity utilization 6
distributors
Average -2 Average 5
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Backward or Forward Integration

FP Horizontal Integration
Market Penetration Market Development
6 Product Development
Diversification (related/unrelated)
5
Conservative Profiles Aggressive
4
3
2
1 (3,3)
0
CP - - - - - - 0 1 2 3 4 5 6 IP
6 5 4 3 2 1
-1
-2
Defensive Profiles -3 Intensive Profiles
-4
-5
-6
SP
From the Space Matrix the proposed strategies as follow:

• Backward, Forward or Horizontal Integration.
• Market Penetration
• Market Development
• Product Development
• Diversification (related or unrelated)
From matching models & Studies, Tesla has the probability to use multiple strategies such as
Backward integration, Market Development with Product Development.
We are obliged to use a different model for accurate Decision, so a Quantitative Strategic Planning
Matrix (QSPM) is mandatory.
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Strategy selection:
o Quantitative Strategic Planning Matrix (QSPM)
Market Product Backward Market

Critical Success Factor (CSF) penetration development Integration development
Opportunities Weight AS TAS AS TAS AS TAS AS TAS
O1 Governments' trend to deploy clean energy & Electrical Vehicle. 5% 2 1 0.05 4 0.20 4 0.20
0.10
O2 Consumers' behavior, Ecofriendly lifestyle trend & Bargaining power of consumers 3% 4 4 0.10 4 0.10 3 0.08
0.10
O3 Technological rabid change & Innovations 5% 2 4 0.20 4 0.20 1 0.05

0.10
Strong future growth for FMA of EVs to grow Market share in the overall
O4 5% 3 4 0.20 4 0.20 3 0.15
automotive industry 0.15
O5 Remarkably law substitute of EV & Clean Energy products 3% 4 3 0.08 4 0.10 4 0.10
0.10
Threats
T1 Dealership regulations in some states of USA in domestic market affect direct sale of Tesla 3% 1 4 0.10 4 0.10 4 0.10
0.03
T2 Aggressive Competitors strategy in innovating and promoting their products 5% 3 4 0.20 4 0.20 4 0.20
0.15
T3 Inflation rate impact on material cost & Price control 3% 3 4 0.10 4 0.10 2 0.05
0.08
T4 Bargaining power of suppliers & shortage of microchips 8% 1 4 0.30 4 0.30 4 0.30
0.08
T5 Defects of Supply chain affected by COVID-19 pandemic & economic blockades. 5% 3 3 0.15 4 0.20 3 0.15
0.15
T6 Rarity of main component of Lithium-ion batteries 8% 1 3 0.23 4 0.30 4 0.30
0.08
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Strength
Efficiency of energy. using electricity as a source of its transportation products & Solar
S1 Systems complete products range as a source of clean & renewable Energy Services & 3% 3 2 0.05 4 0.10 4 0.10
Infrastructure. 0.08
The finance position & the sales of Tesla have significantly increased over the past years
S2
and the chart is continuously rising.
4% 1 4 0.16 4 0.16 3 0.12
0.04
S3 The image of the brand in the customer's eye is excellent & well recognized. 4% 4 4 0.16 4 0.16 3 0.12
0.16
S4 The design, idea and innovation in the products being manufactured by the company. 4% 2 4 0.16 4 0.16 3 0.12
0.08
S5 Internalize Battery production. 3% 4 1 0.03 4 0.12 2 0.06

0.12
S6 FMA, with high R&D capabilities, continues innovation for new product pipeline. 4% 1 4 0.16 3 0.12 4 0.16
0.04
S7 Diversified Manpower & management with a good culture & core value. 3% 2 2 0.05 4 0.10 3 0.08
0.05
S8 Economy of scale for SKU Model 3 manufactured in Gigafactories around the Globe. 4% 4 2 0.08 4 0.16 3 0.12
0.16
S9 Forward integration of direct distribution to customers. 3% 3 2 0.06 3 0.09 4 0.12
0.09
Weaknesses
Poor communication between teams & middle management, Stressful Work Environment,
W1
and potential burnout are visible in multiple aspects of the organization.
4% 2 2 0.08 4 0.16 4 0.16
0.08
Poor Management approach of pure top-down model (Autocratic leadership) with all its
W2
major cons.
3% 3 2 0.05 4 0.10 4 0.10
0.18
W3 ESG score is medium risk with negative impact on investors. 3% 1 3 0.08 2 0.05 3 0.08
0.03
CEO is working as micro-manager, Sole Representative, eager to details which derails
W4
production, reduces productivity
3% 3 3 0.08 3 0.08 3 0.08
0.08
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Turnover in senior leadership raises questions that weaken the confidence of the stock
W5
market and, most likely, also contribute internally to production delays.
3% 1 1 0.03 4 0.10 4 0.10
0.03
W6 Lack of risk management implementation as new production delays are evident. 3% 1 2 0.05 4 0.10 4 0.10
0.09
W7 Lack of Customer Relationship Management (CRM) 3% 2 2 0.05 4 0.10 4 0.10

0.05
Total 1.00 2.44 3.02 3.86 3.38
Best Strategy to be chosen in depend on WO analysis is:
From QSPM we Found the Strategy of Backward Integration is preferred; the Second proposal is Market development.
o The Most important Strategy

Eventually, the result of Internal & External environmental Analysis,
The EVs industry in prosperity & growth as well as the demand for
clean energy, company has every chance of success that enables it to
capture these opportunities, but the shortage of raw materials and
the potential deficit in supply chain threaten & jeopardize the
company's vision of operating on a global scale.
So, the most important strategy is the Backward integration to
achieve the Firm’s strategic Objectives.
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o Strategic objectives:
1 By the end of 2025, EVs’ battery must be improved through R&D to fabricate smaller and more powerful LiBs
with a minimum range of over 425 miles (684 kilometers) and a minimum charging time of 30 minutes or less to
compete with ICEVs.
2 Invest 2.5% of revenue in a 360-degree marketing campaign to raise global awareness of eco-friendly products &
sustainability by the end of 2027.
3 Focus on creating customer loyalty by offering high quality product, offering new innovative products, create a
wide range of product, give good service for customer experience to increase hi rank of NPS & number of
customers by 250% by the end of 2027.
4 Adopt a trilogy axis of ESG to raises the ESG rank so that by the end of 2027, it will be one of the Top Ten instead
of 55th out of 86.
5 By the end of 2025, applying technological innovation, research, and development to the problem of recycling
spent lithium-ion batteries will help cut down on the need for lithium.
6 Creating a revolutionary aspect in the production of electric vehicles by utilizing technological innovation,
research and development as opposed to conventional methods like large-scale die casting to reduce vehicle
weight, complexity, and manufacturing costs. (automotive-engineering, 2021).
7 Investing 10% in natural substance producing, Lithium mining and extracting to conquer the scarcity of main
component of Lithium-ion batteries and foster substitute arrangements with vendors to control of Provided Raw
Material (LiBs, Microchips) by end of 2027.
8 Double manufacturing capacity by new 4 giga factories with the exiting 6 to reach 10 Gigafactories by the end of
2027.
9 By the end of 2027, Implementation of solar energy generation and storage facilities to reach 5,000 MW
additional to the current 400 MW in eco-friendly countries all over the world, spread out four stations at each of
the 201 countries across the globe.
10 By the end of 2027, the turnover rate should be less than 15%, down from 27%, by Emphasizes incentives and
reward programs designed to boost productivity, improve the work environment, and upgrade career paths in
order to retain talented employees.
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1. Internal Policies to be followed
The following Internal policies should be implemented to achieve strategic objectives by 2027:
1. Inclusive identification and managing of safety hazards
2. Implement safety reward programs.
3. enhancement of culture and recognition of values
4. minimize the amount of contamination caused by lithium-ion batteries, it is necessary to install an appropriate
inspection system.
5. Employee’s assessments should be obtained through a KPI system with bilateral reporting to prevent subjective
valuations.
6. Giving awards & rewards for each innovation, creation, value added process modification in all departments to
encourage employees to constantly innovate and add value to the business.
7. Improve the R&D department and provide the R&D team with the best training and development programs to
provides exposure to every major area of the business.
8. Continuation of Tesla Student Automotive Technical Program (START)- An intensive training programme designed
to provide college students with the skills necessary for a successful career.
9. Engage Employee to drives productivity, satisfaction, and loyalty as critical role in employee retention.
engagement initiatives strive to make employees feel informed, valued, and respected.
10. Activate company-wide open-door policies with leaders empower employees to make Employee’s ideas heard.
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Evaluation & Control:

Balanced Score Card to apply a Vertical Backward Integration Strategy by Tesla, Inc.
Area of KPI Time

Objectives Target Initiative
objectives measure Y1 Y2 Y3 Y4 Y5
Actual unit sold /
Increase Market Share from
15% Total market 3% 3% 3% 3% 3%
15% to 30%
Volume
current Daily monitoring
Increase Sales by 375%, from
375% FY/Previous FY of of increased 75% 75% 75% 75% 75%
71% to 75% YoY
Revenue sales
Increase ROA from 11% to 16% 5% EBIT / Revenue 1% 1% 1% 1% 1%
Increase Capital 125% by fund
Financial in Infrastructure (Super charger current
Stations, Services/Sales centers, 125% FY/Previous FY of 25% 25% 25% 25% 25%
Solar Generation Station) in Fixed Asset
ecofriendly countries
reduce number
current FY /
Reduce Manufacturing Cost of overall parts
10% Previous FY of 2% 2% 2% 2% 2%
from 73% to 63% required for
COGS/Revenue
assembly
Increase EBIT from 12% to 17% 8% EBIT / Revenue 1% 1% 1% 1% 1%
offer vegan
Invest 2.5% of revenue in a
interior option -
360-degree marketing
Marketing 100% leather
campaign to raise global
Customer 2.5% Expenses/ Total free car to 0.5% 0.5% 0.5% 0.5% 0.5%
awareness of eco-friendly
Revenue compliment eco-
products & sustainability by the
friendly business
end of 2027.
model
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Area of KPI Time

Adopt a trilogy axis of ESG to
monitor
raises the ESG rank so that by
increase of
the end of 2027, it will be one 10 ESG rank 45 35 25 15 10
satisfied
of the Top Ten instead of 55th
customer NPS
out of 86.
Focus on creating customer
% Of
loyalty by offering high quality
customers who monitor
product, offering new
return increase of
innovative products, create a 250% 50% 100% 150% 200% 250%
Number of satisfied
wide range of product, give
customers customer NPS
good service for customer
customer NPS
experience.
By the end of 2027,
Implementation of solar energy
generation and storage
Capacity of Grow
facilities to reach 5,000 MW
new solar energy supercharger
additional to the current
5000 generation and network to 1400 2400 3400 1000 1000
400MW in eco-friendly
storage facilities improve long-
countries all over the world,
per year distance travel
Process spread out four stations at each
of the 201 countries across the
globe.
Double manufacturing capacity by
Number of new
additional 5 giga factories with the
5 established Giga 1 1 1 1 1
exiting 6 to reach 11 Gigafactories
Factories
by the end of 2027.
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Area of KPI Time

Investing 5% in natural
substance producing, Lithium
mining and extracting to
conquer the scarcity of main
increase in
component of Lithium-ion
10% Assets/ Total 2% 2% 2% 2% 2%
batteries and foster substitute
Revenue
arrangements with vendors to
control of Provided Unrefined
substance (LiBs, Microchips) by
end of 2027.
By the end of 2027, the
turnover rate should be less
than 15%, down from 27%, by Implement work
Emphasizes incentives and breaks
Learning Employee
reward programs designed to 15% Increase 24.6% 22.2% 19.8% 17.4% 15.0%
& Growth Turnover rate
boost productivity, improve the employee
work environment, and compensation
upgrade career paths in order
to retain talented employees.
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Business Plan 2023 for Tesla, Inc.:
1. Executive summary
Tesla is an American business established in Palo Alto, California, offering electric vehicles and clean
electric power solutions. It specializes in creating high-quality electric cars for the general public
around the globe and clean, renewable electric energy. They are known for their vehicle's incredible
on-road performance
The company's name is a tribute to inventor and electrical engineer Nikola Tesla. In February 2004,
Elon Musk became the largest shareholder of the company. He has served as CEO since 2008.
The company markets and sells vehicles to customers through a network of company-owned stores
and galleries, with manufacturing facilities in the United States, Germany, and China, as well as
operations in Asia-Pacific and Europe.
Tesla’s mission is to accelerate the world’s transition to sustainable energy by bringing high-
performance electric vehicles and sustainable energy products to market. This mission requires
fast-paced innovation and execution.
2. Company description
We have been the fastest growing automobile brand over the course of the COVID-19, we have not
only successfully maintained our production capacity and top spot in terms of EV model sales but
also have stored up value in terms of future captive software revenues.
The brand’s impressive growth continued this year with a brand value up by 44% to US$46.0 billion,
which saw it move from 6th to 3rd in the Brand Finance Automobile 100 2022 ranking.
The growth story of Tesla is a result of strenuous efforts from all the working groups in one direction
to the summit, overtaking all the failed attempts, difficulties, competitors, global logistics problems,
lack of resources, strong competition in the automotive market and clean energy production.
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Key Facts
Elon Musk, Martin Eberhard, JB Straubel, Marc

Founders
Tarpenning, Ian Wright
Year Founded July 1, 2003, San Carlos, CA

Year of IPO 29-Jun-10
IPO Price $17.00
$93.35 million, as of Nine Months Ended
Total Revenues at IPO
September 30, 2009, prior to the IPO
Elon Musk becomes CEO 2008
Total Revenues in 2021 $53.8 Billion
Employees 99,290 full-time subsidiaries’ employees worldwide
Revenues per Employee $542,079.00
Elon Musk is the primary individual shareholder,

Who owns Tesla?
with 23.1% of the company’s shares
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3. Organization and management

We had balanced promoting and deals with our production capacity and the need to constantly innovate as a driving universal producer of one of the most brand name vehicles in the world. we
structured our organization in a useful or U-
formed manner, with global functional centers
that oversee all business operations. Design,
technology, engineering, finance, sales, and
marketing are among these functional centers.
The chief executive officer's (Musk) and
chairman's (Larry Ellison's) offices are also
included.
All employ a hierarchical structure, with
managers and assistants reporting to each
other. The company's two most important
divisions—Automotive and Energy
Generation—are supported by the functional
centers, along with a subset of geographical
divisions in key jurisdictions like China and the
United States. All districts of the trade
ultimately report to and are facilitated from the
concentrated US-based headquarters in Palo
Alto, California. Administrative control over the
entire trade is maintained through the use of
this corporate commerce structure. This also
makes it possible to streamline processes and
provide strategic direction from the top level of
management down through the organizational
structure.
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Collaborations, Mergers, and Acquisitions

• Daimler AG has acquired an equity stake of nearly 10
percent of Tesla Motors Inc.
• Tesla and Toyota announced a partnership to work on ▪ Tesla acquired Perbix, a maker of highly
electric vehicle development automated manufacturing equipment
• Tesla and battery cell maker Panasonic announced that ▪ Tesla Inc. partnering with Liberty Mutual
they would together develop nickel-based lithium-ion Insurance Co. to offer an auto-insurance
battery cells for electric vehicles plan designed specifically for its electric
• Tesla and TAG Heuer World Tour Arrives in Los Angeles cars in the U.S.
to produce the Tag Heuer-Tesla Roadster, a zero- ▪ Tesla Motors and NVIDIA have partnered
emissions electric sports car ▪ Tesla partnered with Airbnb to since the early development of the
provide destination chargers at certain revolutionary Model S
host houses ▪ Toyota announced that it had sold all of
Toyota released electric ▪ Tesla acquired Riviera Tool LLC; a its shares in Tesla and halted cooperation
car RAV4 EV in manufacturer stamping of die systems ▪ Tesla, AMD partner to develop chip for
partnership with Tesla used to form sheet metal parts autonomous cars
motors
2010 2012 2014 2015 2016 2017 2018
• Tesla and Panasonic collaborate on • Tesla partners for electric truck charging
Panasonic reached a basic photovoltaic cell and module production in stations for its electric trucks at Anheuser-
agreement with Tesla to Buffalo, New York Busch parent AB InBev (BUD), PepsiCo
participate in Gigafactory 1 Inc (PEP) and United Parcel Service Inc
• Tesla acquired Grohmann Engineering (UPS) facilities
• SolarCity has partnered with Tesla Motors to • Orange & Rockland Partners with Tesla Inc.
provide solar energy storage to homeowners to Increase Electric Battery Storage, Use,
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and Value
•
4. Market assessment
To state our potential customer and his requirement and as well as competitors to put our business
plan on clear ideas where we expect the financial requirement and finance proposals.
As the rate of electrification continues and advancements in connectivity technology continue, the
automotive industry will begin to experience significant shifts in business models in 2022.
The changing scene is demonstrated by seven new participants in the Top 100 this year, compared to as
few as two last year, as well as the amazing development from recently launched brands. These
changes are giving rise to strong competition that is undermining existing brand techniques and has
given rise to tremendous unused openings for both existing Original Gear Producers (OEM) and modern
brands. While established brands have experienced more repressed growth, these unused starters are
boosting the value positioning.
An intonation point is being created for the industry and its brands by the combined weights of evolving
versatility, shifting drivetrain and demonstrate type requirements, a shifting client and administrative scene, and
modern technology requirements. However, sales and values have both increased, giving the industry the
appearance of strength.
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Customer demand is rising, investment in new capacity, particularly for electric vehicles (EVs), is skyrocketing,
and innovation is continuing at a rapid pace. The outlook for the industry is positive despite the pressures.
Competitors of tesla:
With good reason, rivals are increasing their manufacturing and sales endeavors. According to Fortune
Trade Experiences, the global electric vehicle market will grow at a rate of 24.3 percent annually, going
from $287.36 billion in 2021 to over $1.3 trillion in 2028.7 Despite this, Tesla automobiles possess a
certain high-status cachet that has not yet been achieved by officeholder automakers. Passage, GM,
NIO, and Volkswagen are four of Tesla's central rivals. In 2021, China's BYD sold over 590,000 vehicles
and may be a threat. In 2021, SGMW, another Chinese company, sold over 450,000 electric vehicles’
may be a joint venture between China's SAIC Engines, Common Engines, and Liuzhou Wauling Engines
Co. Ltd. Tesla currently has the largest market capitalization of any of these companies.
General Motors
With good reason, rivals are increasing their manufacturing and sales endeavors. According to Fortune
Trade Experiences, the global electric vehicle market will grow at a rate of 24.3 percent annually, going
from $287.36 billion in 2021 to over $1.3 trillion in 2028.7 Despite this, Tesla automobiles possess a
certain high-status cachet that has not yet been achieved by officeholder automakers. Passage, GM,
NIO, and Volkswagen are four of Tesla's central rivals. In 2021, China's BYD sold over 590,000 vehicles
and may be a threat. In 2021, SGMW, another Chinese company, sold over 450,000 electric vehicles’
may be a joint venture between China's SAIC Engines, Common Engines, and Liuzhou Wauling Engines
Co. Ltd. Tesla currently has the largest market capitalization of any of these companies.
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The United States-based car manufacturer General Motors (GM) was founded in 1908.13 GM is
committed to an all-electric future in response to climate change. A Chevrolet Silverado EV with a range
of 400 miles is one example of the EVs that GM intends to plan, design, and produce for every fashion
and price point. In addition, it is gaining a competitive advantage in manufacturing, vehicle integration,
batteries, and computer software.1415 It will invest $35 billion in EVs and autonomous vehicles (AVs) all
together by 2025.It promises to sell one million electric vehicles annually in China and North America.
Since its debut in 2017, more than 100,000 Jolt EVs have been purchased by GM. The Bolt has received
some of the industry's highest ratings for dependability and customer satisfaction. Within the United
States, three quarters of Bolt EV buyers are unfamiliar with GM.
GM's EV strategy relies heavily on batteries. The cost of its battery packs was nearly 40% lower than
that of Chevy's Jolt EV. Also, the organization has assessed that its second-Generation Ultrium packs will
cost about 60% less than the batteries currently used in automobiles. Its manufacturing stage will deal
with batteries for every one of its EVs, in light of a solitary, normal cell and on the other hand catalyst
components.15 General Motors is settled in Detroit, MI. The manufacturing of EV batteries will take
place in Lord's Town, Goodness. It had a showcase capitalization of $58.39 billion in August 2022.
Volkswagen
Volkswagen is one of the biggest car producers within the world. Its exceedingly recognizable items and
brands incorporate Volkswagen cars, Audi, Bentley, Lamborghini, Porsche, and Skoda.
A decade after Tesla developed on the EV scene, Volkswagen has discreetly been making advances. It
gauges that 50% of its U.S. deals by 2030 will be EVs.
It's investing tens of billions to meet this objective. It moreover plans to deliver 1.5 million electric
vehicles by 2025 to assist buyers meet the EU’s anticipated outflow targets.
In 2019, Volkswagen reported that it would launch nearly 70 unused electric models over the taking
after ten a long time. Based on that, it anticipated to construct 22 million vehicles on electric
platforms.23 Volkswagen is creating a comprehensive decarbonization program that's committed to the
objective of CO2-neutral adjust in all ranges from armada to generation to organization by 2050.23
Founded in 1937, Volkswagen has survived world war, endless cycles of boom-and-bust, as well as the
scandalous 2015 emissions embarrassment in which it conceded that numerous VW diesel motor cars
sold in America had built-in program that seem identify when they were being emission-tested and may
change execution for superior results.24 Volkswagen is headquartered in Wolfsburg, Lower Saxony,
Germany. In Admirable 2022, Volkswagen had a advertise capitalization of $85.66 billion.
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5. Product lines
SKUs Description Pictural index
Fully electric, four-door, five-adult
passenger sedan
Combination of performance, safety,
styling, convenience, and energy
efficiency
Model S 100D is the longest range all-
MODEL S electric production sedan in the
world
Includes a 17-inch touch screen driver
interface, advanced autopilot
hardware, and over-the-air software
updates.
longest range all-electric production

sport utility vehicle in the world
Fully electric, all-wheel drive dual
MODEL X motor system and autopilot system
Incorporates a unique falcon wing
door system for easy access to the
second and third seating rows
Third generation electric vehicle that

began deliveries in July 2017
Produced at the Tesla Factory in
Fremont, California and at
MODEL 3 Gigafactory 1
Cells used in Model 3 are the highest
energy density cells used in any
electric vehicle
The quickest car in the world, with

record-setting acceleration, range,
and performance.
As an all-electric supercar, Roadster
ROADSTER maximizes the potential of
aerodynamic
engineering with record-setting
performance and efficiency
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SKUs Description Pictural index
Solar panels blend into roof with

Solar integrated front skirts and no visible
Panels mounting hardware. The result is a
clean, streamlined look.
Powerwall charges with energy

produced by solar panels, making
that energy available when needed,
Powerwall day or night.
battery
Powerwall also enables solar panels
to produce energy during grid
outages.
Lowest Cost Solar Panels in America

Solar Roof Customize the amount of electricity Solar
Roof produces to fit energy needs
6. Marketing and sales plan

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2023 will be Tesla’s true ‘breakout’

year.
The Tesla Cybertruck, The Tesla
Roadster, The Tesla Quad, The Tesla
Semi.
The new innovated products saw new
expected production dates from Tesla
CEO Elon Musk at Gigafactory Texas.
Despite Tesla accomplishing so many
incredible things over the past fourteen
years, from basically financial ruin to
the most valuable automaker in the
world, 2023 is a chance for the
company to truly break away from
competitors once and for all.
Tesla is always outspoken about its
plans and being open with its audience. The brand's launch events, which feature one-of-a-kind
automotive tests and audience interaction online, make it active in the market.
Tesla offers three different variants of its cars- Model S, X, and 3. They are all built with great
motors that can accelerate from 0
to 60 mph in just 3 seconds. Each of
them has distinctive eco-friendly
features that set them apart. This
brand is making big changes by
integrating solar-powered
technology into its key energy
frameworks to produce better
products and deliver better
performance.
Target Customers
The four Ps, Product, Price, Place, and
Promotion, make up the marketing mix, which aids in growth. To preserve the most earnings
possible from the firm, Tesla has sharp minds working diligently in the background. And this is
Tesla's marketing mix. Already the Sales is great, but we can increase after we developed the
network, but we need a marketing plan to change the vision of our customer
Tesla does not have any franchises. By claiming storefronts through its online organization, this
brand eliminated the support structure of third-party organization.
Tesla is always outspoken about its plans and being open with its audience. The brand's launch
events, which feature one-of-a-kind automotive tests and audience interaction online, make it
active in the market.
Marketing Channels
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Tesla is vertically integrated. Therefore, the company runs and operates the Tesla’s plants
where cars are manufactured and the
Gigafactory which produces the battery
packs and stationary storage systems for its
electric vehicles, which are sold via direct
channels like the Tesla online store and the
Tesla physical stores.
Tesla sells directly, in contrast to other
automakers, which sell through franchised
dealerships. The company now owns a
worldwide network of showrooms and
galleries, the majority of which are located in
well-known urban areas.
Consequently, Tesla have combined direct sales strategy with service centers under the
recently expanded retail concept known as "Service Plus."
Tesla operates differently than other established automobile manufacturers. Tesla prohibits
investors from purchasing franchises. Tesla have established sales centers that simultaneously
serve customers and sell products. Because Tesla manages these locations, franchise owners
receive fewer performance-based incentives. These franchise owners sometimes put in more
effort for the rewards than they do for the brand.
Digital Marketing Strategy of Tesla
What may come to you as a shock is that Tesla is renowned worldwide for its $0 marketing approach. It
may seem unusual, yet this is the case. Multiple advantages from Tesla's operations have been utilized,
and these advantages have been applied to its marketing methods.
Tesla's CEO, Elon Musk, has significantly increased the company's market visibility. He is socially
engaged on social media and frequently gets into small fights. His idealistic demeanor piques the
interest of a large number of people, and his social media account grows into a vehicle for Tesla
marketing. Tesla’s marketing is ultimately helped by its strong social media presence.
For a long time, Elon Musk has been interested in online buzz. His most recent publicity came from
testing the new cyber truck's window glass, which was not intended to break but nevertheless
generated a lot of buzz for Tesla and ended up being used as marketing for the vehicle.
Tesla operates in a different manner than other established automakers. It does not allow investors to
purchase franchises. They have established sales centers that provide both sales and customer service
simultaneously.
Ten Principles to Follow in Tesla's 2030 Marketing

Plan Last but not least, holistic branding goes beyond simply selling products or services and may
include supporting a cause and working for the common good. Tesla will not be threatened by the
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progress of opponents; Instead, Tesla focus on dominating industry while achieving company's long-
term objectives and vision.
To explore deeper into these points, here are ten Principles to Follow in Tesla's clear marketing strategy:
1. Enhance the customer experience to the fullest extent possible.

2. Make a Strong Reference Program.
3. No rely on paid advertising.
4. Make use of CEO's influence on social media.
5. Be as authentic and entertaining as could in marketing efforts to promote mission and vision.
6. excellent post-purchase customer service.
7. Accept being a little controversial.
8. focus the efforts online & enable self-service options.
9. Maintain consistency in company's messaging.
10. Boost brand awareness through several channels. Also, welcome competition.
Last Thought on Tesla's Marketing Strategy
The online buzz and the CEO's larger-than-life aura are the foundation of Tesla's marketing strategy.
Tesla’s marketing now stands out because of this. Tesla’s products, aside from the advertising, are one-
of-a-kind and of exceptional quality. If you can reach global markets with high-quality goods, you won't
need to market as much. Word-of-mouth advertising can help you succeed.
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7. Financial projections
• Financial position:
Tesla continues its growth – increasing by 40% to US$46.0 billion and raising three ranks to become the
3rd most valuable autos brand. It has not only successfully maintained its production capacity and top
spot in terms of EV model sales but also has stored up value in terms of future captive software revenues
(Brand Finance Automotive Industry, 2022).
Tesla has been the fastest growing automobile brand over the course of the COVID-19 pandemic with
astounding brand value growth of 271% in the last two years. The brand’s impressive growth continued
this year with its brand value up by 44% to US$46.0 billion, which saw it move from 6th to 3rd in the Brand
Finance Automobile 100 2022 ranking. (Brand Finance Automotive Industry, 2022).
2021 saw Tesla increase its footprint in China, to ensure it continues to compete in the booming Chinese
market.
Tesla opened a new research and development centre, its first outside of America, in addition to a data
centre at its Gigafactory in Shanghai. The brand also built a second delivery centre in the city, which
incorporates sales, test driving and delivery of Tesla vehicles. Looking to 2022, Tesla announced it would
launch no new models this year due to the global chip shortage, as doing so would reduce its overall
output. Instead, the brand will focus on its full self-driving software as well as scaling up its production
capabilities.
Market cap history of Tesla from 2010 to 2022

As of November 2022, Tesla has a market cap of
$560.57 Billion. This makes Tesla the world's 7th
most valuable company by market cap according
to (Companies market cap, 2022).
Earnings Per Share for Tesla

According to Tesla's latest financial reports the
company's current EPS (TTM) is $3.61. In 2021
the company made an earnings per share (EPS)
of $1.85 an increase over its 2020 EPS that were
of $0.24.
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Annual overview:
Tesla Inc reported revenue of 53.8B for FY 2021, an increase of 70.67% compared to FY 2020. Net income
grew 700.58% to 5.5B.
Tesla Inc reported total assets of 62.1B for FY 2021, an increase of 19.14% compared to FY 2020.
Quarter overview:
Tesla Inc reported revenue of 21.5B for FY 2022 Q3, an increase of 55.95% compared to FY 2021 Q3. Net
income grew 103.46% to 3.3B.
Tesla Inc reported total assets of 74.4B for FY 2022 Q3, an increase of 28.69% compared to FY 2021 Q3.
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• Financial Statement Q3 - FY2022:
Statement of Operation (Profit & Loss)
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Balance Sheet
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Statement of Cash flows
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• Financial Forecast:
Based on the financial ratio analysis shows ratio index trend tends to decline or increase, following is a financial forecast plan
for the growth of Revenue, Net income, & EPS:
All values shown in below table are in Millions of USD.
Actual Forecast
Q3 Q3 FY FY FY
Year FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
2022 2021 2021 2020 2019
Revenue
57,144 36,104 53,823 31,536 24,578 82,037 110,250 138,464 166,677 194,891 223,104
Net
Income 8,869 3,301 5,519 721 -862 17,486 29,453 41,420 53,387 65,354 77,321
EPS
2.55 0.95 1.63 0.21 -0.33 5.33 6.56 7.80 9.03 10.26 11.50
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References
(2016, Sep). Retrieved from Business Insider: https://www.businessinsider.com/how-tesla-compares-to-other-electric-cars-
2016-8
(2021, Oct 26). Retrieved from wolf street: https://wolfstreet.com/2021/10/26/teslas-market-cap-gigantic-v-next-10-
automakers-v-teslas-global-market-share-minuscule/
(2021, Jul 27). Retrieved from The Verg: https://www.theverge.com/2021/7/26/22595060/tesla-chip-shortage-software-
rewriting-ev-processor
(2022, Sep 26). Retrieved from World Bank: https://www.worldbank.org/en/topic/energy/overview
(2022, Sep 7). Retrieved from Statista: https://www.statista.com/statistics/541390/global-sales-of-plug-in-electric-vehicle-
manufacturers/
(2022). Retrieved from Macro trend: https://www.macrotrends.net/stocks/charts/GPI/group-1-automotive/financial-ratios
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rd-and-marketing-per-car-to-other-automakers/
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370-parts
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62 | P a g e
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Comprehensive Exam, Tesla (Answer)

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Tesla: Companies Fighting

Climate Change in 2023

Comprehensive Exam: November 2022

5. Product lines ............................................................................................................................ 51

Tesla: Companies Fighting Climate Change in 2023

Tesla ranked as the

Tesla’s revenue grew to

External Environmental Evaluation:

Shortage of Future Lithium Supply and the Uneven Distribution

o Porter’s 5 forces Analysis:

Threat of New Entrants (moderate)

Threat from substitute: (Weak)

Rivalry Among Existing competitors: (High)

Bargaining power of suppliers: (High)

Bargaining power of consumers: (low)

o Competitive Profile Matrix

It’s clearly obvious that EV & clean Energy market

Competitive Profile Matrix CPM

Advertising campaign 8% 1 0.08 3 0.24 2 0.16

Product Qualification 10% 4 0.32 2 0.16 3 0.24

Product Variety 8% 4 0.32 1 0.08 1 0.08

Price competitiveness 12% 3 0.24 4 0.32 3 0.24

Production Economy of scale 10% 4 0.32 3 0.24 2 0.16

Research & development 10% 4 0.32 1 0.08 3 0.24

Global Expansion 8% 4 0.32 3 0.24 2 0.16

Distribution Efficiency 8% 3 0.24 3 0.24 3 0.24

Brand Reptation 8% 4 0.32 3 0.24 3 0.24

Financial position 8% 4 0.32 3 0.24 4 0.32

Customer Loyalty 5% 4 0.32 2 0.16 2 0.16

Market share 5% 4 0.32 3 0.24 2 0.16

Total 1.00 3.44 2.48 2.4

o EFAS External Factor Analysis Summary

Total 1.00 3.30

Internal Environmental Evaluation:

Table 2: Consolidated Balance Sheets during the period 2019-2021

Sep. 2022 Q3 2021 Dec. 2021 Dec. 2020 Dec. 2019

Account Receivable 2,192.00 1,962.00 1,913.00 1,886.00 1,324.00

Inventory 10,327.00 5,199.00 5,757.00 4,101.00 3,552.00

Current assets 35,990.00 25,002.00 27,100.00 26,717.00 12,103.00

Total assets 74,426.00 57,834.00 62,131.00 52,148.00 34,309.00

Account Payable 13,897.00 8,260.00 10,025.00 6,051.00 3,771.00

Current liabilities 24,611.00 18,051.00 19,705.00 14,248.00 10,667.00

Total Liabilities 33,302.00 29,340.00 30,548.00 28,418.00 26,199.00

stockholders' equity 39,851.00 27,053.00 30,189.00 22,225.00 6,618.00

Long-term Debt 2,096.00 6,438.00 5,245.00 9,556.00 11,634.00

Financial Ratio Analysis for Tesla, Inc.

Values tends to decline, indicate that Many

Values tends to Low; Firm may have difficulty

B- Financial Leverage (Solvency) Ratios

First introduced by Tom Peters and Robert Waterman in

company's strategy and values.

1.3.3. Monitoring and evaluating controls

an open and transparent culture.

o Internal Factor Analysis Summary (IFAS)

Matching & Strategy Generation phase

Financial Position FP Rate Stability Position SP Rate

ROI 6 Technological changes -1

Leverage 5 Rate of inflation -1

Liquidity 4 Demand variability -2

Working Capital 6 Price range of competing products -3

Inventory Turnover 2 Competitive pressure -5

Earnings per share 5 Ease of exit from market -2

Price earnings ratio 4 Price elasticity of demand -2

Competitive Position CP Rate Industry Position IP Rate