Tesla Motors. Essay

August 14, 2017 Engineering

Should Tesla travel start to bring forth gasoline- or intercrossed powered vehicles? Tesla Motors. unlike most other car companies. started with making the most top notch. advanced. electric autos in the market. With their merchandises like the Roadster and Model S. their capableness in being the figure one car in the EV market is pronounced. Tesla Motors came to market with one theoretical account at a clip. This shows that the company is non focused on bring forthing different lines of merchandises but focused on doing the best merchandise. Other companies. like Nissan. started with simpler autos in the ICEs and HVs foremost so travel up the invention. engineering ladder with EVs afterwards. Tesla’s committedness to offering the best engineering allowed them to be placed in the high-end portion of the electric vehicle industry on the same degree as BMW’s 5 Series and Audi’s A6.

For the grounds mentioned above. Tesla should non travel to bring forth gasolene or intercrossed cars because this will travel off from their nucleus competence of edifice autos with big capacity battery battalions. Additionally. Tesla’s resources and capablenesss. where resources are defined as “assets that can be used to bring forth surplus” ( 1 ) and capablenesss as “collections of activities that the house knows how to execute and that aid make or capture surplus” ( 1 ) . presently don’t allow Tesla to bring forth anything other than electric autos without holding to take down its value and increase its costs. Tesla’s whole stigmatization is based off its rules of supplying an environment friendly. low emanations vehicle that matches or outperforms high-end ICE vehicles. For Tesla to plunge into the ICE or HV market. it would hold to divert from what it stands for.

Besides. bring forthing anything aside from electric autos forces Tesla to re-structure its mill. and expand at a quicker gait to mass-produce gas or Hybrid powered autos. which involves incurring more costs. Tesla has a works in Fremont. CA that has a production capacity of 100. 000 cars/year. but Tesla’s current production degree is merely 21. 000 cars/year. This brings up the issue of feasibleness. of whether the extra resources available or the direction squad “are capable of transporting out the scheme. and whether the scheme creates insolvable subproblems in order to be carried out” ( 2 ) .

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In order to construct ICEs or HVs. Tesla would hold to be able to utilize its current capacity to carry through production demands. use technological and specific industry cognition. and repositing its trade name as trade-offs for any new merchandise recommendations to be executable. Tesla besides doesn’t have the physical construction and distribution channels like most automobile makers of ICEs and HVs vehicles. Technology is besides another ground why Tesla should non travel to bring forth gasolene or intercrossed vehicles because the company merely has experience in planing electrical vehicles. Tesla has no experience in the gasolene and intercrossed engineering. Traveling to these engineerings would merely do the company to deviate their focal point to larning the ICE and HV markets. and bit by bit cut down their market portion and place in the EV market. hence compromising the company’s stigmatization of “future of the automobile” ( 3 ) .

Since the Model S was placed in the same degree as the BMW 5 series and Audi A6. the following measure for Tesla should be to construct smaller. more compact. and low-cost EV autos that are in the same monetary value degree as BMW’s 3 series. Mercedes’ C category. or lower Audi’s A category theoretical accounts. Unlike constructing gasolene or Hybrid vehicles. which presently the company does non hold experience in or the capacity to bring forth. constructing a more low-cost compact EV vehicle for Tesla should non be a job. particularly since they have extra EV works capacity to use. They presently have the engineering and battery available to back up a lower theoretical account that could be targeted to more consumers. The company besides invested to a great extent on constructing a web of more than 15 supercharger Stationss. which would be a waste of costs and resources if Tesla didn’t optimise its EV merchandise line. With the lower theoretical accounts. the company can derive synergy by bring forthing more electric vehicles. doing these bear downing Stationss more meaningful.

Mentions:

( 1 ) “Notes of Strategic Advantage” . Steven Postrel. Course Reader. 2008. Pg. 44 ( 2 ) “Notes of Strategic Advantage” . Steven Postrel. Course Reader. 2008. Pg. 48 ( 3 ) “Tesla Motors” . Eric Van Den Steen. Harvard Business School. Jan 24. 2014. Pg. 7

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