Emily Johnson, Miah Casey, Austin Bates, Day Woods, Garrett Kasey, Dakota Jones

Organizational
History
• Tesla was founded in 2005 by a group of engineers
who wanted to prove that people didn’t need to
compromise to drive electric.
• “Tesla believes the faster the world stops relying
on fossil fuels and moves towards zero-emission
future, the better”
• First car, the Roadster launched in 2008
• Launched the world’s first all electric sedan right
after.
Current Situation
• 2019 Tesla unveiled Model Y, a
mid sized SUV and a Cybertruck
which will have better utility than
a traditional truck and more
performance than a sports car
• 8/21/20 Tesla surpassed Walmart
in market value. Ranking 9th in
S&P 500 companies
• Labeled as “most satisfying car”
by fox business
• Stock went up $2000+/share and
split 5-1 on 9/1/2020 lowing the
cost of the stock significantly.
 To look at the history and current situation of Tesla. This
information gives insight into the economy, where it has
Scope gone, where it is now, and where it intends to go in the
future.
 • 12+ week Global shutdown​
• Over 22 million people filed for unemployment​
General • More than 100,000 businesses shut down permanently​
Environment • Automotive sales dropped by 15% ​
• Production plants have struggled globally to
Trend Analysis​ contain COVID-19 cases​
• Consumer demand has decreased 
Industry Analysis

• 3,269,671 EVs sold in 2019​

• Accounted for 2.1% of global car sales​
• Overall sales of electric vehicles (EV) has increased during
pandemic​
• Estimated to account for 3% this year​
• Most buyers weren’t affected by COVID-19​
• Increased concern for environment​
• Projected to sell 45 million units by 2030​
• Increase in demand for low emission, fuel efficient
vehicles​
• Proactive government initiatives to enhance growth in
sales
• Asia is the largest electric car market in the world 
• Accounted for half of electric cars sold in 2019 
• Europe and US close behind 
Competitor Analysis​
• Hyundai-Kia​
• 8.9% of global EV market​
• On track to be more
competitive on electric vehicles
than its original gas-powered
vehicles​
• Mostly sold in Europe and Asia​
• Sold less than 20,000 EVs in
USA in 2019
• BYD “Build Your Dreams”​
• Founded in 1995​
• Headquarters in Los Angeles​
• World’s leading EV manufacturer of both
consumer and commercial electric vehicles
for the past three years ​
• Has the most electric buses in service
around the globe (40,000)
Competitor Analysis
• Volkwagen​
• Makes up 13% of the EV
market​
• Sold over 80,000
electric vehicles last year ​
• On track to sell 200,000
this year​
• Expected to be world’s
largest EV maker by end of
decade (passing BYD)
• Renault/Nissan​
• Formed an alliance to create electric
vehicles​
• 2nd to Tesla in sales in 2020​
• Only sold in Europe​
•  Zoe has passed up Tesla’s Model 3 to
become the best-selling electric vehicle in
Europe
Internal Environmental Analysis​
Resource-Based View​
• Tangible Resources:​
• Financial​
• Positive cash flow with four consecutive profitable quarters.​
• Stock prices soaring until stock split.​
• Physical​
• New “Gigafactories” & vertical integration are cost-saving.​
• Tesla’s production process is becoming more sustainable over time.​
• Technological​
• Innovation of their production processes drives product quality & reduces costs.​
• Organizational​
• Proven ability to develop new factories and innovate their manufacturing process.​
• Successful creation of new products and services.​
Internal Environmental Analysis​
Resource-Based View​
• Intangible Resources:​
• Human​
• Charismatic, yet volatile, CEO provides news coverage and social media buzz
about Tesla products.​
• Innovation​
• Innovation is one of the core competencies of Tesla.​
• Ex.: Producing own batteries at factory in Nevada and utilization of vertical
integration at factory in Shanghai​
• Reputation​
• Strong reputation for producing high-quality, sustainable products.​
Capabilities​
Value-Chain Analysis​
• Primary:​
• Inbound Logistics​
• Factories in Nevada, California, and
Shanghai. ​
• Factories being built/updated in
New York and Germany.​
• Operations​
• Continually improving production
process and ways to vertically
integrate pieces of their production
chain.​
• Outbound Logistics​
• Sales to end-users eliminates the
mark-up of a middleman.​
• Cars do not spend a long period of
time in inventory.​
• Marketing and Sales​
• Tesla spends less on marketing than
most other firms in the industry,
but manages to generate exposure
through social media and news
coverage.​
• All sales online, but brick and
mortar stores showcase the vehicles
and utilize service representatives
to help in the purchasing process.​
• Service​
• Easy-to-navigate website.​
• Safety of the customers is a priority
for Tesla. ​
Capabilities​
Value-Chain Analysis​
• Secondary:​
• Procurement​
• Produces own batteries for vehicles.​
• Looking to locally source 100% of inputs at Chinese factory by the end of 2020.​
• Technological Development​
• Continuous innovation of technological capabilities of their products and
their production processes.​
• Human Resources​
• Tesla places major focus on employee safety and injury rate is better than the
industry average.​
• General Administration​
• Releases “Impact Report” each year to detail Tesla’s impact on social welfare. ​
Core Competencies​
• Vertical Integration​
• Producing own batteries and looking to further integrate their production process.​
• Marketing​
• Generating large amounts of exposure without spending as much as other competitors. ​
• Innovation​
• Innovation of their products and production processes.​
SWOT Summary

Strengths Weaknesses

Opportunitie
Threats
s
 STRENGTHS

Sells a story to “Preserve a global

1. environment”.

2. Strong brand recognition.

3. Tax incentives in certain countries.

 Expensive and difficult to
maintain.

WEAKNESSES

Manufacturing Lack of regulations

complications. for self driving cars.
 OPPORTUNITIES

Economic

Ahead of competition.

Plan to become
Significant cost
biggest battery Sales expansion in
advantage against
production in the untapped market.
competitors.
world.
 THREATS

Strong following on
Twitter that can
Elon Musk’s
Social positively impact or
unpredictable behavior
damage reputation of
company.

Automotive brands
Ex. Mercedes,
Competition is on putting out their
Renault, BMW, and
the rise. own versions of
Audi.
electrical cars.
Corporate Level
Strategy ​
Vision Mission
• “To create the most Initial Mission:​
compelling car of • “To accelerate the world’s
the 21st century by transition to sustainable transport.”​
driving the
world’s transition to
electric vehicles.” ​ Current Mission:​
•  “To accelerate the
world’s transition to sustainable
energy.”​ 
 Tesla’s (Secret) Master Plans:
Part One
• Build sports car ​
• Use revenue to create a more affordable car
• Use that revenue to create an even more affordable car​
• Provide zero emission electric power generation options​to users

Part Deux
• Creation of solar roofs with integrated battery storage​(and make it look nice)
• Electric vehicle product line expansion that addresses all major segments​
• Development of self-driving capability 10X safer than manual with use  of massive
fleet learning​
• Enable monetization of vehicles when owners aren't using them
Tesla’s Corporate
Strategy​
• Vertical integration of
production​
•  Product
diversification
via acquisitions of
related companies.​
SOLAR
POWER​
 • Solar City​
Corporate • Merged with Tesla in 2016​
Strategy: • Acquired with a goal to create the world's only sustainable
Acquisitions ​ integrated energy company focusing on all aspects from
generation of power to  storage.
PRODUCTION ​
Corporate Strategy: Acquisitions ​
Riviera Tool Inc.​
• A medium sized tool and die company
with around 100 employees. ​
   
Grohmann Engineering​
• Acquired to help improve the speed and
efficiency of Tesla's manufacturing
processes. 
Corporate Strategy: Acquisitions ​
Perbix​
• A clear advancement in Tesla's efforts
to turn their factories into products
themselves. The creation of a machine
that builds a machine.
Compass Automation​
• Troubleshooting, integration of
industrial automated equipment,
mechanical assembly, field wiring,
and electrical panel wiring.
Battery Production
Corporate Strategy: Acquisitions​
Hibar Systems Limited​
• A company developing high-efficiency
lithium-ion manufacturing system
with the ability to be used for mass
electric energy storage.
Maxwell Systems
• Plans to use battery technology to
create their own battery cells and
improve battery technology. 
Business Strategies
Market Penetration
• Existing market – car industry 
• Focus on green vehicles – sustainable? 
• Complete focus on electric vehicles 
• Electric vehicle market: 
•  Introduction | Growth | Maturity | Decline
 Product Development

• Model S​ • Close partnership with

Space-X 
• Model X​
• Battery development
• Model Y​
• Solar Panels
• Model 3 
• Computer Chips
Diversification​

• Broadening product lines to Vertically integrated:

encompass more of the • Batteries
market​ • Computer Chips
• Battery development in • Seats
Australia and Puerto Rico ​ • Mining lithium
• Energy storage and
generation​
• Tesla Homes – renewable
energy based integrated
vision
Market Development​
• Is a first-mover in EV market 
• Builds renewable energy batteries in Australia and
Puerto Rico 
• Must stay ahead of VW, BMW, etc.
• Solar Panels for homes
Porter’s Five Forces​
• Bargaining power of • Threat of substitute products - low​
suppliers – Strong (now • Vehicles using fossil fuels​
• Depends on speed of transition to EVs ​
that scaled​) • EVs lack infrastructure​
• Vertically integrated 
• Threat of new entrants – huge (in the
• Musk’s request for money
back  long run)​
• Almost all existing companies intend to
• Bargaining power of get into EVs ​
buyers - Low​ • BMW VW Toyota already almost there​
• 100ks buyers  • Existing competition - low​
• Many firms ​ • Not many right now​
• Varying depending on • Kia, Toyota, BMW, Renault, Mitsubishi ​
competitor for each vehicle​ • Many pre-orders for tesla vehicles 
 Overall Strength

Good starting position:

Not a guaranteed success
in the long run​
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https://www.tesla.com/blog/becomin https://www.marketwatch.com/story https://www.cnbc.com/2020/06/29/tesla

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References
References, Cont.
Photo sources