Course Project Deliverable 2

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Tesla Company

Isdory Lyamuya

DeVry University

BUSN412

Professor: Jasmine McKinney

January 26, 2025

Tesla Company

Introduction

Tesla Company accommodates fundamental players including customers, suppliers, and affiliated organizations for effective operations. Notably, the Tesla Company consumers include 25-65 middle and upper-income levels, determined, long-term cost-effectiveness and comprising Employees, professionals, senior managers, executives. The Company accommodates fundamental suppliers including AGC Automotive, Brembo, Fisher Dynamics, Inteva Products, Modine Manufacturing Co. Sika, Stabilus, and ZF Lenksysteme. Similarly, there are major organizations within the Tesla operations such as SolarCity Corp, Maxwell Technologies Inc., Grohmann Engineering GmbH, Perbix Machine Co. Inc., and Hibar Systems Ltd. Tesla In. exchanges electric vehicles with customers for revenue generation. Similarly, accommodate reliably and high-quality needs products from suppliers. Finally, Tesla accommodates a collaborative platform with major organizations for high-quality electric cars and energy for revenue generation.

In the Tesla Inc. there is a significant competitive strategy for high-end products (Kamkoum, 2017). Similarly, Tesla Company provides significant product strategy strengths including a high variety of electric vehicles, advanced technology such as autopilots, sustainability through energy conservation, and high-end product differentiation (Elliot, 2022). An enriched product strategy promotes the Company’s competitive advantages, continuation, and profitability. Tesla Company embraces upstream distribution, offering a competitive advantage in the supply chain management, increasing market share and reduced competition from GM and Ford.

History

The Tesla Inc. is an American-based Company, focusing on designing, manufacturing, and sale of electric vehicles, and suitable energy generation and storage solutions. In 2003, the Company was founded by two engineers, Martin Eberhard and Marc Tarpenning, generating its name form Tesla Nikola, the inventor and Elon Musk invested in the Company in 2004, becoming the CEO in 2008.

The Company’s fiscal information revealed a healthy financial position with a total of $84.46 billion in as of December, 31, 2024. Similarly, the Company recorded a net income of $7.6 billion (Yahoo Finance., 2025). Elon Musk continues to be the CEO of the Tesla Inc.

Tesla Inc. records underpinning milestones in the public on June 29, 2010 after Ford in 1956. In 2012 Tesla Inc. delivered first model (S sedan), accommodating significant performance c and design criticism from customers and public. In May 2013, the Company recorded its first quarterly profit. Currently, Tesla Inc. continues to expand product line and vehicle modes such as Model 3, Model Y, and the Cybertruck and energy generation and solutions, including Powerwall and Megapack (Higgins, 2020). Throughout its history, Tesla has been at the forefront of innovation in the automotive and energy sectors, driving the global shift toward sustainable energy solutions.

Mission

Tesla Mission is
“to accelerate the world’s transition to sustainability” Tesla Inc., 2025). In the mission, there is an underpinning focus on the global energy and sustainability challenges, establishing innovative solutions such as in electric vehicles (EVs), renewable energy storage, and generation. The mission aligns with the Company’s focus on strategic sustainability, technological enhancement and, market leadership in the industry, towards development and growth.

According chapters reading, an effective mission statement gives a significant platform to address strategic decision-making and, performance, aligning with the goals. The Tesla Inc.’s mission aligns with sustainability and innovation focus, crate a strategic competitive advantage in the market, focusing on inspiring internal stakeholders, employees and customers and investors for a common environmental responsibility. Moreover, the Company’s commitment to innovation is integral to component of competitive advantage. By continuously advancing EV and battery technologies, Tesla creates value through differentiation, appealing to customers seeking cutting-edge, eco-friendly transportation solutions. This focus aligns with the textbook’s discussion of how aligning organizational goals with environmental trends creates sustainable competitive advantages. Ultimately, Tesla’s mission encapsulates its drive for long-term relevance and positive global impact.

SWOT

Tesla accommodates significant business strengths such as innovative processes, strong brand, and a robust control on production process and opportunities including global market expansion, internationalization of supply chain expansions, and diversification in business. Significantly, connecting business opportunities and strengths gives Tesla Inc. to practices strategic business management and operations strategies to accommodate a competitive advantage in automobile manufacturing industries. The Tesla strengths such as innovative process and a strong control on the production process underscoring in managing diversification in the business platform in multiple dimensions. For example, Tesla Inc.’s innovative process accommodates the innovation of fully electric cars for energy and business solution within care manufacturing industries, enabling the Company to develop competitive and profitable products (Kamkoum, 2017).

Admittedly, Tesla Inc.’s internal factors in strong control on the production process on vertical integration, and centralization within Tesla Inc.’s hierarchal and organizational culture underpin the need to accommodate opportunities in global market expansion, internationalization of supply chain expansions, and diversification in business. For example, the Company’s strengths in manufacturing automobiles and other components manage opportunities in business diversification and global market expansion through product differentiation as a competitive strategy in competitive e advantage acquisition. Thus, Tesla Inc.’s strengths and opportunities interrelate to provide competitive. Tesla Inc. accommodates notable weakens including, includes high prices, limited marker availability, and limited supply chain and notable strengths such as strong brand positive sales trend strong sales in western Europe strong investors energy Efficient (Kissinger, 2018). Significantly, turning Tesla Inc. weakness into strengths provide underpinned platform for business strategy and competitive advantage.

Porter’s Five Forces

In the Tesla Inc.,
Threats to New Entries are moderate with high barrier to entry because high amount of initial capital requirement, technological needs, and economies of scale in electric vehicle production. However, companies such as Rivian and Lucid Motors have startups possibilities with low innovation and brand loyalty to match Tesla Inc.’s business innovation and strategy.

The Bargaining Power
of the Company is moderate to high because battery components and materials such as lithium, cobalt, and nickel are limited globally. The vertical integration reduces Tesla’s supplier power by manufacturing its own batteries and developing proprietary technology, but raw material dependencies remain.

Consequently,
the Bargaining Power of the Buyers is moderate. The customer influence has a strong brand and innovative EV technology gives it an advantage, but buyers are becoming more price-sensitive with increasing competition in the Company. Similarly, Companies such as Ford, BYD, and Hyundai are offering alternative electric vehicles, creating a competitive environment, increasing buyers’ bargaining power.

In the Tesla Inc.’s Company, the industry experience low to moderate
Threat of Subtitles with gas-powered vehicle’s availability and low upfront with negative environmental implications. Moreover, public transport and shared mobility present alternative ride-sharing and mass transit pose a minor substitute threat, particularly in urban areas.

Ultimately,
Industry Rivalry is high at Tesla Inc. due high competition and Tesla position. Notably, The EV market is intensifying with traditional automakers (Ford, GM, VW) and startups (Rivian, NIO) investing heavily in EVs. Despite market leadership and innovative Company, there is pricing war pressure fuelling the industry competition. Tesla Inc. is dynamic, and competitive hence leadership position, with noticeable shortcomings, including supplier reliance, competition, and consumer evolving preference in innovation.

Higgins, T. (2020). Elon Musk Has Changed Investors’ Views on the Electric Car. The Wall Street Journal.

Kamkoum, C. 2017).
TESLA, Inc. International Business Strategies. Uludag University Press

Kissinger, D. (2018). Tesla Inc. SWOT Analysis & Recommendation.
Panmore Institute.

Yahoo Finance. (2025). Tesla, Inc. (TSLA).
Tesla, Inc. (TSLA) Company Profile & Facts – Yahoo Finance