Summary

Tesla motors was founded in 2003 by a group of Silicon Valley engineers who set
out to prove that electric vehicles is the future. The five founders of Tesla are:
1.
2.
3.
4.
5.

Marc Tarpenning
JB Straubel
Ian Wright
Elon Musk
Martin Eberhard

The current CEO of the company, Elon Musk stated that the vision of the Tesla
motors is to "accelerate the worlds transition to electric mobility with a full range of
increasingly affordable electric cars"
Its headquarters is in Palo Alto, California. It has stores in over 125+ countries with
6000+ employees.
Products:
1. Tesla roadster (out of production)
2. Tesla Model S (Car of the year, 5-star safety awards)
3. Tesla Model X (to be released on 2015)
CVF model
Tesla motors primarily operates in Open system model because it relies heavily in
creative problem solving, political adaptability, innovative ideas and management of
change. Plus, having a shared vision and values is crucial.
Main Global Challenge: Technology
Implications of challenge:
1. It is very inconvenient to the Tesla owners to charge their car for 4-5 hours
every 200 miles.
2. Tesla has not been able to deliver their product on time due to delayed time in
production
3. Due to rising cost of lithium and lack of mass production, the manufacturing
cost if rapidly increasing.
4. Big autos including Ford, Toyota, Audi, Mercedes and General Motors are
investing both time and resources toward stealing market share from Tesla in
the niche EV space.
5. Due to the high price and inconvenient battery power system, Tesla is having
a very hard time entering the mass market.

Recommendations
1. Producing lithium ion batteries in their own Giga-factories will help reduce
their cost drastically
2. Increasing their scale of manufacturing will not only help lower the
manufacturing cost, but also help Tesla fulfil the market demand
3. Increasing the battery capacity and shortening the charging period will make
driving Tesla more convenient
4. Addition to that, adding a solar panel on the roof of Tesla cars can also help
minimize the battery issue
5. And the most important, to achieve the goal of producing 500000 cars by
2020, following a rational goal model of management is not only crucial, but
imperative.