...Tesla Motors Strategic Analysis Prepared by: Lexen Beran Brenna Hayes Travis Heidemen Jenna Hughes Jake Latimer In Partial Fulfillment Of the Requirements For: MANGT 595: Business Strategy M/W/F at 12:30pm 1 Table of Contents Table of Contents…………………………………………………………………...……2 Executive Summary……………………………………………………………………...3 Introduction………………………………………………………………………………4 External Analysis………………………………………………………………………...5 Internal Analysis…………………………………………………………………………8 Strategic Challenges………………………………………………………………….…10 Strategic Recommendation……………………………………………………….……11 Implementation Plan……………………………………………………………...……13 Conclusion………………………………………………………………………………14 Bibliography……………………………………………………………….……………15 Appendices………………………………………………………………………………16 2 Executive Summary Tesla’s uniqueness and innovative products has served as a catalyst to an entire industry seeking an alternative to the complacent market of gas-powered only vehicles. But what strategies where utilized in their great success? How will the firm continue to innovate after the growth stage? This report will introduce you to Tesla and its current operating environment by examining the industry in which it operates via internal and external analysis. The report will tell of how Tesla pioneered technologies that were mostly untapped and unavailable to the masses. By examining the resources and capabilities of the firm, it will better help to delineate the...
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...Tesla Motors 3500 Deer Creek Palo Alto, CA 94304 650-681-5000 650-681-5101 I. I. Background and Introduction The focus of this analysis is on Tesla Motors and the electric vehicles they design, develop, and manufacture. Tesla Motors was incorporated in 2003 and using technology developed at the headquarters in California the company introduced the Tesla Roadster in 2008 (Tesla Motors, 2010b). On June 28, 2010 the company filed an initial public offering that was accepted by the SEC. They have also become business partners with Toyota Motor Corporation to develop an electronic version of the Toyota RAV4 to be sold in 2012 (Tesla Motors, 2010b). The importance of this analysis is two-fold. First, if a company can successfully develop a fully electric vehicle that is affordable and has mass market appeal it would mark a realistic solution to the diminishing worldwide oil supplies. Second, the technology that would be developed could be used as a springboard for the entire automotive industry. As with any business that is being hinged on new technology, there are significant risks and issues that could potentially be detrimental to the company. Being a new company, there is a very limited operating history for potential investors to go by (Tesla Motors, 2010b). Therefore, future earnings cannot be predicted based on past earnings. The company is losing money and in the SEC filing for the last quarter they state that they expect to keep losing money for...
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...TESLA MOTORS SWOT Analysis Anandita Jindal Tesla Motors is a car company that designs, manufactures and sells electric vehicles. Ian Wright, JB Straubel, Marc Tarpenning, Martin Eberhard and most notably Elon Musk founded this public company in 2003. Its headquarters is located in Palo Alto, California, with its main production plant in Fremont, California. The company was named after Nikola Tesla, a renowned electrical engineer and physicist. Its goal is to increase the number of EV’s (Electric Vehicles) available to the market to help make it more mainstream. Currently, Tesla motors have produced two models, the Tesla Roadster and the Model S, and has unveiled a third, the Model X. In the Future, the company plans to produce family-sized minivans, electric SUV crossovers, and electric fleet vans for municipal governments. Other business includes collaborations with other companies such as Toyota, Daimler, Freightliner Trucks and Panasonic. Although the company has earned much success, it has hit its share of bumps along the way such as lawsuits, recalls and founder disputes. The current CEO, Elon Musk, also holds the title of Product Architect. Musk is also a co-founder of PayPal and Space Exploration Technologies as well as the chairman/CEO of SpaceX and chairman of SolarCity. It’s hard to say if Elon Musk is firstly an entrepreneur or an engineer. Musk has had great success and became a multimillionaire in his late twenties when he sold his first startup company,...
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...TESLA MOTORS’ DISRUPTIVE INNOVATION Ushnik Dasgupta New York University Global Innovation April 26, 2016 ABSTRACT Tesla Motor’s journey since its foundation in 2003 to being ranked third among the most innovative companies in the world in 2015 according to Fortune (Murray, 2015) and the third most innovative company in the automotive sector in 2016 according to Fast Company (The Most Innovative Companies of 2016: Top Companies by Sector, 2016), demonstrates their ability and determination to upset the status quo and eagerness to disrupt the automotive market by trying to change the global preference towards greener electric vehicles. However, is Tesla’s approach towards this niche market by manufacturing models...
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...Telsa Motors trying to enter the Chinese market Organizational behavior is centered on how people act or behave in an organization. An organization is simply a group of individuals who have the same interests and are brought together by similar or common goals (Lam and John 123). Organizational behavior is, therefore, the study of the factors that influence how employees and other people respond, feel and act to organizations and work and how the Company is affected by the external environment (McShane, Steven and Glinow 321).Organizational behavior reveals how people interact in a group and how the environment affects this interaction. The subsidiary of Telsa Motors in China was registered in the year 2006, but full operations began in 2013 when the trademark issue for Telsa Motors was resolved. Organizations must learn that their trademark is an international recognized concept but in some overseas market there can be problems with the mark of a Corporation. The best way to overcome these matters can be through franchises with existing domestic Corporations. Telsa Motors, Inc. is an American multinational Company that manufactures designs and sells electric vehicles, components of power train and battery products. Telsa is a publicly traded Company that sells its stock on the NASDAQ stock exchange market under the symbol TSLA. Marc Tarpenning and Martin Eberhard started Tesla Motors way back in 2003 (Hettich and Stewens 3). Business has been average for Telsa Motors, Inc and...
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...St. John’s University Graduate Student Managed Investment Fund Presents: Tesla Motors, Inc.: TSLA Analysts: Rutvig Bhatt (rutvig@gmail.com) Yanchen Liu (yanchen.liu12@stjohns.edu) Gaoting Liu (liugaoting@gmail.com) Kevin Shanker (kevin.shanker05@stjohns.edu) Share Data: Fundamentals: Price 5/7/14: $201.35 GAAP EPS (FY Dec’13): -0.62 Market Cap: $24.80B E[EPS2015]: 1.83 52 Week Range: $63.69 – $265.00 Beta: 1.10 1 Contents 1. Executive Summary……………………………………………………3 2. Company Overview……………………………………………………3 3. Industry Analysis………………………………………………………8 3.1 Industry Overview…………………………………………………9 3.2 Analysis of Competitive Forces – Porter’s 5 Forces………………9 4. Fundamental Analysis………………………………………………..11 5. EPS Forecast………………………………………………………….24 6. Relative Valuation Model…………………………………………….29 7. Absolute Valuation…………………………………………………...32 8. Risk Factors…………………………………………………………..35 9. Conclusion and Recommendation……………………………………38 Reference………………………………………………………………..39 2 1. Executive Summary BUY recommendation based on our relative valuation model, EPS forecast, and absolute valuation model (for 7% or higher constant growth rate) : The average price estimate is $294.98，compared to the current stock price of $189 as of 5/13/14 . It shows that Tesla is undervalued. According to our result of absolute valuation model, Tesla can be priced between $92.88 and $304.87, depending upon the constant growth rate of free cash flows after...
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...How Tesla Motors can manage the extreme competition from large and premium manufactures Daniil Chaika (119102547) Workshop Tutor: John Davison SIM336 - Strategic Management ------------------------------------------------- Contents 1.0 Introduction ……………………………………………………………………………….3 2.0 Company Background………………………………………………………………….….3 3.0 PESTEL Analysis……………………………………………………………...…………..3 4.1. Political……………………………………………………………………………..3-4 4.2. Economic……………………………………………………………………………...4 4.3. Social………………………………………………………………………………….4 4.4. Technological…………………………………………………………………………4 4.5. Environmental………………………………………………………………………...5 4.6. Legal…………………………………………………………………………………..5 4.0 Porter’s 5 Forces Analysis…………………………………………………………………5 5.7. The Threat from New Entrants……………………………………………………..5-6 5.8. The bargaining power of Buyers……………………………………………………...6 5.9. Threat of Substitution…………………………………………………………………6 5.10. The bargaining power of Suppliers…………………………………………………..6 5.11. The Intensity of Rivalry in the Industry……………………………………………6-7 5.0 Value Chain Analysis (VCA)……………………………………………………………...7 6.12. Primary Activities…………………………………………………………………..7-8 6.13. Support Activities…………………………………………………………………..8-9 6.0 SWOT Analysis……………………………………………………………………………9 7.14. Strengths…………………………………………………………………………..9-10 7.15. Weaknesses………………………………………………………………………10-11 7.16. Opportunities………………………………………………………………………...
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...How Tesla Motors can manage the extreme competition from large and premium manufactures Daniil Chaika (119102547) Workshop Tutor: John Davison SIM336 - Strategic Management ------------------------------------------------- Contents 1.0 Introduction ……………………………………………………………………………….3 2.0 Company Background………………………………………………………………….….3 3.0 PESTEL Analysis……………………………………………………………...…………..3 4.1. Political……………………………………………………………………………..3-4 4.2. Economic……………………………………………………………………………...4 4.3. Social………………………………………………………………………………….4 4.4. Technological…………………………………………………………………………4 4.5. Environmental………………………………………………………………………...5 4.6. Legal…………………………………………………………………………………..5 4.0 Porter’s 5 Forces Analysis…………………………………………………………………5 5.7. The Threat from New Entrants……………………………………………………..5-6 5.8. The bargaining power of Buyers……………………………………………………...6 5.9. Threat of Substitution…………………………………………………………………6 5.10. The bargaining power of Suppliers…………………………………………………..6 5.11. The Intensity of Rivalry in the Industry……………………………………………6-7 5.0 Value Chain Analysis (VCA)……………………………………………………………...7 6.12. Primary Activities…………………………………………………………………..7-8 6.13. Support Activities…………………………………………………………………..8-9 6.0 SWOT Analysis……………………………………………………………………………9 7.14. Strengths…………………………………………………………………………..9-10 7.15. Weaknesses………………………………………………………………………10-11 7.16. Opportunities………………………………………………………………………...
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...Financial Statement Analysis for Tesla Motors Introduction There are a lot of automobile companies in the world and some of them have special technologies of their own. The technology industry is not as competitive as other industries. It requires highly technological innovations to operate efficiently. As long as companies keep coming up with new creative design ideas, the industry will keep producing products and making profit, but it is not easy for any company, even Tesla Motors. Tesla Motors successfully used battery technology on their automobiles, which leads the company in the electric automaker field. In the automotive industry, some auto companies use specialized technology of their own. Tesla Motors is one of these companies, which has successfully used its battery technology on automobiles, and has helped the company become very successful. Company Overview Tesla Motors, Inc. is an American company that designs and sells electric cars and electric vehicle power train components. It is a public company whose stocks trades on the NASDAQ stock exchange under the symbol TSLA. Tesla Motors first gained world’s attention according to its production of the Tesla Roadster, the first fully electric sports car. The company's second vehicle is the Model S, which is a fully electric luxury sedan. Tesla Motors also sells electric power train components, including lithium-ion battery packs. Its CEO, Elon Musk, has said that he envisions Tesla as an independent...
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...External Analysis PESTEL Analysis In order to distinguish and break down the fundamental elements of the company’s external environment it is suggested to use PESTEL analysis (Academy, 2015). Figure below illustrates all crucial external factors, which need to be considered while doing external analysis. PESTEL stands for: Taken from: http://www.professionalacademy.com/blogs-and-advice/marketing-theories---pestel-analysis In the following paragraphs, each factor is going to be analyzed separately. Political By selling autos in many countries of North America, Asia andWestern Europe (Tesla, 2014), the companyneeds to manage any political issues affecting its business operations. For example,one of the main political aspects influencing on the industry is ecological assurance lawsto stimulate the production of more environmentally friendly vehicles to meet the emanation levels(Environmental-protection.org.uk, 2014). The next essential aspect is US government vitality advance projects for innovative work of new vehicle advances (Department of Energy, 2014). For this situation, numerous automobile producerswill be occupied with entering the new business sector in automobile industry. Economical Nowadays, US market is most attractive for Tesla Motors, because of the economic growth and level of GDP (Tradingeconomics.com, 2015). Figure 1 below illustrates the growth rate of US GDP from 2013 to 2015. Figure 1. US GDP growth rate (%). (Trading Economics, 2015) In addition,...
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...Cozzani Foster Glenn Fabrizio Sebastiani Financial Statement Analysis Prof. S. Bozzolan LBS Groupwork, 2016 Tesla Motors, Inc._Cascioli, Cozzani, Glenn, Sebastiani 2 Table of Contents I. Executive Summary………………………………………………………………………......………………………3 II. Company Description………………………………………………………………………………………………..3 A. History……………………………………………………………………………………………………………………………..3 B. Mission…………………………………………………………………………………………………………………………….4 C. Products…………………………………………………………………………………………………………………………..4 III. Industry and Strategic Analysis………………………………………………………………………………..5 A. The Company’s Porter’s Five Forces Analysis……………………………………………………………………5 IV. Financial Analysis…………………………………………………………………………………………………….6 A. Tesla’s General Financial Strategy…………………………………………………………………………………….6 V. Works Cited and Consulted…………………………………………………………….………………………10 VI. Annexes A. ANNEXE 3. Cash Flow Tesla Motors, Inc…………………………………………………………………………..11 B. ANNEXE 2. Reformulated Income Statement Tesla Motors, Inc. ………………………………………..13 C. ANNEXE 1. Reformulated Balance Sheet Tesla Motors, Inc. ……………………………………………...14 Tesla Motors, Inc._Cascioli, Cozzani, Glenn, Sebastiani 3 I. Executive Summary The American electric vehicle company Tesla Motors, Inc. (TSLA) embodies an innovative manufacturer of premium electric ...
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...Tesla Motors Portfolio, Program and Project Management Course Project Contents Introduction 3 Organization’s Strategic Plan 3 Organization Strategic Capacity Plan 4 Portfolio Management Process 8 Project Selection Process 15 Program Management Plan 17 Risk Management Plan 20 Change Management 21 Resource Utilization Plan 24 Personnel 24 Production Line 25 Inventory 25 Charts and Graphs 26 Organizational Influence Chart 26 Project Selection Process Flowchart 27 Conclusion 27 Reference: 29 Introduction Tesla Motors designs and manufactures the most advanced electric vehicles and electric power trains in the world. Tesla Motors do not compromise on innovation, performance, or appeal. Nor does Tesla Motors compromise commitment to hiring and developing the best from around the world. Tesla Motors work in small, focused teams, which much like our products are agile, efficient, and focused on excellence. Tesla Motors are driven by work that contributes to a global impact and are passionate about our future in the automotive industry. The pace is fast, the work is stimulating, structure is limited, and innovation is expected. Tesla Motors is headquartered in Palo Alto, California, runs satellite offices in Los Angeles and Maidenhead, UK, and operates retail locations around the world. Whatever location you choose, you'll be surrounded by the best of the best, working together to impact the future of transportation. Tesla Motors is committed...
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...SWOT Analysis of Tesla Motors Strength – In the first part of SWOT analysis of Tesla Motors, Strength are discussed. * Energy efficiency: the most energy efficient car as it uses renewable energy such as solar power. * Supplier to other manufacturer: Tesla is a major supplier of car parts for Toyota. * Ability to manufacture environmental friendly cars: Tesla has pure and complete advantages over other companies in manufacturing environmental friendly cars. * Cost reduction advantages: they outsource secondary components to other companies which gave them acquiring cost reduction advantages. * Existing strong investors and partners: Tesla acquired strong investor’s partners in recent years such as Google, Daimler, Panasonic, and Toyota motors. Weakness – In second part of SWOT analysis of Tesla Motors, weakness are discussed. * Bad impact from Model X: Tesla recently launched high-tech car Model-X which price is expensive it compared with that of other cars. * Time consuming to make a delivery: Tesla says if you order a car, you will have it delivered after one year which cannot be a strong distribution process. The manufacturing capacity is so limited. * Bigger Debt Portion: Tesla has large portion of debt (and a negative $455 million cash flow) in its financial statement which makes it vulnerable. * Short story of experience: As Tesla has established in the year 2003, it does not have sufficient experience comparing to other car manufacturers...
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...4/29/2011 BUS 496 Dr. Janis Dietz Table of Contents Table of Contents 1 Current Situation 2 Strategic Direction 23 Personal Assessment 26 Financial Analysis 30 Appendix A 33 Appendix B 36 Appendix C 39 Current Situation Introduction; Company Overview; Strategic History of Industry; Analysis of Industry; Strategic History of Organization; Mission Statement, Current Business Level Strategy; Current Strategy for the Major Operations/Functions of the Company; Description of the Organizational Structure, Culture, and Control Systems; Analysis of the Financial Position; VRIOS Analysis; SWOT Company Introduction and Overview “Why the Name ‘Tesla’? The namesake of our company is the genius Nikola Tesla, an inventor, electrical engineer, and scientist. Among his life's many inventions (and more than 700 patents) are the induction motor and alternating-current power transmissions. Without Tesla‘s vision and brilliance, our car wouldn't be possible. We're confident that if he were alive today, Nikola Tesla would look over our 100 percent electric car and nod his head with both understanding and approval” (Tesla Motors). Tesla Motors is an automotive manufacturing company that was founded in 2003. The company produces fully electric-powered cars, as well as modular battery packs. Currently, the company only has one car model on the market, the Roadster, of which only around 1500 has been sold. However, at a cost of around $100,000 for the Roadster, it is...
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...Tesla Motors Strategic Analysis Report Industry, Company Analysis and Recommendations on Accelerating Transition to a Solar-Electric Economy By Candela Díaz, Michelle Ikoma, Benton Moss, John Son, David Valenstein Introduction The United States automobile industry is one characterized by incumbent behemoth corporations whose distribution channels span the world. Companies like Toyota, General Motors, and Volkswagen form entire segments of their respective countries’ economies and have dominated the auto industry for generations. Yet Tesla Motors, a company started in 2003, represents a disruptive threat characteristic of the information age in which industries are constantly challenged to innovate by smaller, more nimble firms. Led by Elon Musk–a serial entrepreneur who co-founded PayPal, serves at the helm of SpaceX and chairs the board of SolarCity–Tesla Motors evokes memories of Apple in the 1980s and Napster in the new millenium, companies that shook their respective industries. Industry Analysis The United States automobile industry can be divided into three categories: fully internal combustion engine (ICE), hybrid (a mixture of ICE and electric) and plug-in electric (fully electric vehicles). Within these categories, there are two subcategories based solely on price point: luxury and mass market. For this analysis, we define luxury as vehicles priced at $30,000 and more. Tesla Motors operates within the fully electric luxury segment of the market, but has...
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