1.

Background of the company

Tesla Motors Inc. is an American company that designs and manufactures electric cars. Tesla
Motors was established in 2003 by Martin Eberhard and Marc Tarpenning as electric car
manufacture on the electric car is better than traditional combustion engine car. (Tesla.com,
2015). Started from Silicon Valley in 2003, Tesla has brought the future determination of
founders to prove that electric cars could be better than their gasoline-powered counterparts.
Going through five financing rounds from the individual investors and the equity investment
funds, and receiving the strategic partnership from the experienced investors in the six-year
period (from 2004 to 2009), Tesla Motors officially conducted initial public offering (IPO) and
raised the company value to $226 million in 2010. It became the youngest listed company in the
NASDAQ. Through the period of time, the changes in Broad management have affected the
firm's strategy and performance. Elon Musk, Tesla current chief executive and largest
shareholder, is seen as the person who has drawn an effective strategy for Tesla. He, the
billionaire CEO of Tesla Motors, is one of the primary driving factors behind its success.

In 2006 the company launched its 1st car, the Roadster which eventually sold 2,250 vehicles.
Apart from electric cars Tesla Inc. also sells Drive train components and also Power train
components to companies like Toyota and Daimler. Tesla decided to stop the production of the
Roadster car in 2008 (Tesla.com, 2015). Now Tesla is offering only two cars, Model S, the
world’s first premium zero carbon emission sedan that became the third best car selling in the
world for 2015. And Model X is the entry of sports utility electric vehicle. Tesla company CEO
and Product Architect Elon Musk confirmed the 35,000$ Tesla Model 3 release in March 2016
(Musk, 2015 ). According to the announcement of Tesla, Model Y, The model Y, a mid-size
electric crossover SUV, will be launched in 2020 (Forbes, 2018). Musk has made clear that his
long-term vision for Tesla is a full-service sustainable-energy company and build strong Tesla
network (Business Insider, 2018).

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