Good Essay On Tesla Motors
Tesla Motors is an American Electric Automobile manufacturer organization. It was founded by American entrepreneurs Marc Tarpenning and Martin Eberhard in 2003. The name of the organization was named after the Serbian American inventor Nikola Tesla. The primary goal of the Tesla Motors had always been to manufacture electric sports car with instant torque, zero emissions, and incredible power and thus, prove that electric cars are better than gasoline-powered cars. These features would make it much more affordable and accelerate the transition to workable transport. To accomplish these goals, funding was obtained through different sources. The PayPal cofounder, Elon Musk, most notably contributed in the establishment of the organization. He contributed $30 million in the venture and was selected the chairperson of the organization in the year 2004.
Tesla Motors earns revenue through two segments that is electric cars sales and development services. As according to the facts calculated in Sept 2014, electric car sales accounted for 99.67% of revenue and development services earned up to 0.33% of revenue. These two segments of the Tesla Cars come across certain competitors that includes, Federal Signal, Ford Motor Company, General Motors, Honda Motor Company, Nasdaq-listed Kandi Technologies, Navistar, Oshkosh, PACCAR Inc., Spartan Motors, Tata Motors, Toyota Motor Corp., and Wabco. Currently, Tesla is marketing and selling electric cars through its private network of 80 stores. These stores are located in Asia, North America, and Europe. In the 2013 fiscal year, the company made gross revenues of about $2.01 billion. The Tesla Cars Company had been very successful until recent quarter, but it reported a loss of about $0.01 per share. It was weaker than the sales that were expected. Currently, the company is investing heavily on its infrastructure, primarily for its new Giga factory in Reno. After the establishment of this factory, the company would be able to reduce the costs of car batteries by 30% .
The official mission of the Tesla Motors as stated by the CEO of the company, Elon Musk is to accelerate the start of sustainable transport by introducing compelling mass market of electric cars to market as early as possible. Moreover, the company missions to “move from mine-and-burn hydrocarbon economy towards a sustainable solar-electric economy”. There are several reasons for launching electric cars in the market. Electric cars are environmental friendly with zero tail-pipe emissions. Second, they are safer for the drivers. Thirdly, electric cars are affordable and easy handling .
The first electric car was launched in 2008 by Tesla Motors named Roadster. The company carried on Roadster tests and found that it is capable of achieving 245 miles on a single charge. The performance of the car was also tested and it showed up to the level of gasoline-powered sports cars. The body of the car was designed with the carbon fiber material so that it is lightweight. Roadster was capable of covering 0 to 60 miles/hour in less than 4 seconds. The highest speed was up to 125 miles per hour. Another positive point of the Roadster is its zero effect on the environment. The car has no internal-combustion engine so it does not produces any tailpipe emissions. There was an electric motor fixed in the car powered by lithium-ion cells. These batteries can easily be recharged from any standard electric outlet. The Roadster cost was set to be $109,000.
In the year 2012, the Tesla Motors discontinued production of Roadster and started concentrating on the new Model S sedan. This new model was offered with the option of three different battery ranges. The highest performance was up to 0 to 60 miles per hour in about 4 seconds with the highest speed of 130 miles per hour. The design of the Model S was improved than the Roadster. The batteries of the car were fixed underneath that improved performance, handling, and provided extra storage space. During the same year, the Tesla Motors also built stations that were called superchargers in the Europe and the United States. These stations were built to provide battery-charging services for the electric cars. Later on, the stations were named Tesla Stations that provided charging and replacement services for the Model S battery pack. The company has recently launched Model X. This sports car was designed with an aim to provide above category features to the users. It combines the functionality of the sports car and space for seven adults. Model X is also offered with performance and multiple battery options. There are brilliantly designed functional Falcon Wing Doors and a Dual Motor All Wheel drive features in the Motor X design. The doors can be folded up and out of the way, that provides easy access for the third row seat .
According to statistics collected in the year 2013, there were about quarter a million of gasoline cars that were set on fire in the United States that resulted in the death of 400 people and about 1,200 seriously injured. However, in comparison, only three Model S cars fired that were also due to high speed collisions. During these three accidents, no death or injury cases were seen. These statistics show that electric cars are much safer than the gasoline cars. There are least chances of accidents or being injured. The US Government ranked the Model S Tesla Car as one with the lowest probability of getting an injury .
The popularity and so the sales of the Tesla Cars is rapidly increasing. However, the rapid growth and popularity is bringing in certain challenges for the company as well. Firstly, with the increase in the sales of electric cars, the company would also require to spend a billion of dollars on establishing massive battery factory. Even though, if the company plants a factory, still it would not be able to resolve the Tesla’s battery problem. Like if, the company succeeds to manufacture 500,000 cars, and then they would have to double the investment on lithium ion batteries. However, there is a limited amount of lithium and difficult to produce. If the demand of lithium increases then its cost would also increase. In such case, the Tesla Cars would not be able to achieve its goal of low price. Therefore, it is important for the company to work on the alternative forms of batteries.
Another biggest challenge for the Tesla Cars Company is its competitors. The well-established automotive companies like Honda, Toyota, Ford, Nissan, and GM will soon step in the business of manufacturing electric cars. The tough competition will definitely impose one of the biggest challenges for the Tesla Cars Company .
Bedigian, Louis. The 3 Biggest Challenges Facing Tesla's Future Growth. 7 March 2014. http://www.benzinga.com/trading-ideas/short-ideas/14/03/4374622/the-3-biggest-challenges-facing-teslas-future-growth.
Investopedia. Who are Tesla's (TSLA) main competitors? 2015. http://www.investopedia.com/ask/answers/120314/who-are-teslas-tsla-main-competitors.asp.
Musk, Elon. The Mission of Tesla. 18 November 2013. Tesla Motors.
Schreiber, Barbara A. Tesla Motors. 9 9 2014. http://www.britannica.com/EBchecked/topic/1414616/Tesla-Motors.
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