BA453 Tesla Case Analysis PDF

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Tesla case analysis...

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Tesla needs to lobby Congress in order to raise the funds needed to complete the research and develop a completely electric car that satisfies the general public. The issue is developing an affordable car that can go the distance to the next recharge station and recharge in a time equatable to a car that runs on gasoline would fuel up. The government has encouraged the use of electric cars by offering incentives to the public for purchasing them. However, they need to be contributing far more to companies such as Tesla to help gain widespread adoption of their electric vehicles. When GM and multiple other car companies faced bankruptcy the government had no problem stepping in to invest in their strong comebacks. Now they need to step up in the monetary contributions to electric based car companies to encourage the development for a vehicle that will enhance the environment and lives of all. The government will not supply Tesla with funds unless they develop a viable plan to show what they will do if the government would offer funds to invest in their company. The partnerships that Tesla has created in the past have contributed greatly to their own development as well as monetarily for the other party. It is clear that the current engineers and managerial staff are performing adequately and their partnership with Panasonic seems to be successful, but the nationwide adoption is not occurring due to the high cost of these vehicles. They need to bring in a new and experienced mind that brings fresh knowledge to the table that is familiar with the production of batteries as well as car manufacturing. The Chinese company in the case that originally produced batteries had that advantage, though they ended in failure due to other reasons, they were able to offer a cheaper electric car since they knew how to produce low cost batteries that could go the distance. The Tesla’s that are currently on the road are driven by very wealthy people that one want to drive an exclusive, fast, and sporty car around and/or two are very environmentally friendly. There needs to be a numerous amount of options for a car company to be extremely successful such as the examples given in this case. Chrysler makes the very expensive Cadillac but also offers multiple other cheaper options. Tesla should definitely continue to offer this dreamy sports car but needs to gain the funds from the government to come up with an option for the majority of the public. As one of the only companies that solely develops completely electric cars, a lot of their time has been spent of trial and error and they have lost a significant amount of money in these trials. The key is to make as few mistakes as possible. They need to build a simulated system for the creation of cars and use that for trial and error instead of producing real cars, selling them, and later realizing the cars cost more than the price and/or do not go the optimal distance. With this simulation they would be able to know how many of each part is needed, which is needed where, how much each costs, and see if it would function to their expectations. Yes there will be minor tweaks once they develop final products with real materials but there is less room for money wasted if there are no material parts in the trial and error stage of production. This simulation will be possible with the desired monetary investment in Tesla from the US government. With the new suggested management they would be able to lead this production based on their knowledge on both the electric car manufacturing as well as battery production....