Tesla Motors Essay Example

profit as solely derived from government grants and subsidies. Despite recurring losses, investors remain optimistic about the company's long-term success which has resulted in its stock price performing well. Regardless of this feat though, Tests' name recognition is currently unstable due to its short time on the market making it difficult for them to establish a strong reputation among consumers. Additionally they have had several recalls due to battery defects as well as seat and steering issues but despite these setbacks they efficiently entered the market successfully.Tests Motors, Inc. has a limited product line, currently offering only the Model S electric car to customers. However, they plan to expand their portfolio in the future with the Model X and potentially an updated version of the Roadster. Despite demand exceeding capacity at times due to this limited product range, there are opportunities for growth such as cost reductions, increased distribution and supercharging areas, cross sales to luxury car markets, and technology application to other companies. Tests plans to increase its number of supercharging stations significantly by winter 2015 so that a Model S can travel across 98% of the US without ever being out of range of a 30-minute charging station. The Model S has a range of approximately 265 miles when fully charged and Tests is strategically situating its charging stations near major commercial areas for customer convenience during shopping or dining out.Tests has expanded its market by offering electric cars that have normal appearances and require less charging time. The Tests Model S can accommodate five adults while the upcoming Model X SUB is suitable for road trips and weekend getaways, making it the

first environmentally friendly family car. Winning Motor Trend's Car of the Year Award and surpassing sales of luxury vehicles in its price range has made Tests a competitor to similar PEEVE manufacturers and a status symbol for drivers. With expanding distribution and technological advancements, Tests has the potential to dominate the PEEVE market. Additionally, Tests supplies batteries and motors to other manufacturers like Mercedes-Benz and Toyota. Daimler and Toyota invested $50 million in Tests when it went public in 2009, potentially allowing them to become a leading supplier of laptop batteries for most of the PEEVE market with more deals with other car manufacturers possible. While it remains unclear if other auto manufacturers would grant them such supplier power, it may benefit from trying as they currently haven't licensed any of their supercharger technology.According to Gordon-Bloomfield (2013), Tests will only license their technology if other companies agree to provide free and accessible PEEVE charging, aligning with Teasel's objective. If successful, Tests may become the main provider of batteries, motors, and chargers for most of the PEEVE market. However, there are external risks such as substitute vehicles, supplier limitations, and direct auto sales bans. Furthermore, Tests' high price point compared to gas-powered cars could impede success since traditional vehicles benefit from economies of scale due to their established track record. Other PEES have better distribution areas and cost efficiency than Tests. The company must address cost and distribution issues despite its unique environmental consciousness and body style. Supply chain problems also hinder growth as Panasonic struggles to meet the demand for its new lithium-ion battery technology used by Teasel in just 5000 cars with a significant

effect on reputation if it hopes to compete with GM, Ford, and Chrysler in terms of car sales eventually.Tests needs to address limited charging infrastructure and the burden that fast-charging puts on utility grids in order to stay competitive. While they have committed to improving charging infrastructure by 2015, the installation cost remains a challenge and the impact of fast-charging on battery life is still debated. Additionally, utility companies must manage grid burden during peak hours. Tests also faces demands for lower pricing, as Batteries are expensive at $10,000-$15,000 which results in a significant price difference between Tests Vehicles and conventional vehicles. This makes it challenging for Tests to win over consumers who are highly perceptive of price discrepancies despite minimal distinctions in horsepower, vehicle handling, interior & exterior design compared to traditional vehicles.