Tesla Motors Essay

3696 Words15 Pages
Tesla Motors Case Analysis I. INTRODUCTION The automotive industry is in a period of rapid change. Consumers of motor vehicles have become more environmentally and economically aware, and so with that, the desires of these consumers has shifted. This shift in consumer needs has led the automakers to start researching and developing alternative vehicles and propulsion. Many companies have invested considerable sums of money into R&D to push their technology and develop the vehicle that will satisfy consumer demand. Many companies have now developed one of the two electric vehicles (Battery Electric and Plug-In Hybrid Electric), and have been experimenting with new fuel such as biodiesel and compressed natural gas in order to move away from fossil fuels. These vehicles have many great advantages as well as disadvantages that have the car companies working to continually improve on the quality of technology to provide the best product to consumers. Tesla Motors is no different. Tesla Motors is a company that saw a market they could provide for, had the technology to satisfy, and had great growth opportunity. It is typically hard to break into the automotive industry as a new start-up company, mostly due to economies of scale, but with the rapid change in the direction of the industry it is opening the market to new players. II. ISSUE IDENTIFICATION There are many issues that arise with the new technology of the electric vehicles. The most prominent is the fact that there is no industry standard. There are many alternative fuel sources that are currently in production, but there is no standard across the board. There are multiple types of batteries for electric cars and hybrids that companies are trying to develop, along with biofuels and natural gases. The main problem with this is that as some companies are significantly funding their R&D, some are not because

More about Tesla Motors Essay

Open Document