BACKGROUND:
Tesla Motors is an American electric automotive car manufacturer that was formed in 2003. The company currently sells the high tech, high performance, luxury sports car the “Roadster”, which sells for over $100,000. Tesla will be releasing its new “Model S” sedan later this year, which sells at a more attractive $50,000 to $60,000 range. According to an article in Just-Auto, the future success of the company is heavily reliant on the success of the Model S, as the company is currently only receiving revenue from the sale of batteries to two of its investors. The company went public in 2010, and quickly had stock market success. But as of April 2011, the stock fell significantly, proving the public’s grim outlook concerning the electric car industry. The company sells cars online or in select showrooms in major high traffic metropolitan areas like Chicago. There are 18 dealers in North America, and the company has expanded a few dealerships to Europe and Asia. To differentiate their product and provide superior customer service, Tesla does not sell cars to any franchise dealers. As of 2010, the company had sold about 1,200 Roadsters. Because of the small amount of Tesla vehicles being driven around the country, according to an article from Business Insider, Tesla has a traveling team of repair men called “Rangers” to perform maintenance operations to Tesla vehicles.
STRENGTHS:
Tesla Motors has many positive characteristics that have kept them in business for nearly 10 years. First, the company has formed three beneficial strategic relationships with Daimler, Toyota, and Panasonic. Daimler is a successful German luxury auto engineer, and is the maker of Mercedes-Benz. Daimler benefits from Tesla’s innovative technologies, while Tesla benefits from Daimler’s global supply chain and engineering expertise. Toyota bought three percent of