Tesla Motors: Business Model, Leadership, and Global Growth
This paper provides a concise company profile of Tesla Motors, examining its origins as a Silicon Valley electric vehicle startup, its initial public offering in 2010, and its rapid revenue growth. The paper covers Tesla's leadership under CEO Elon Musk, its geographic expansion into Europe, China, and Australia, and its stated mission to accelerate the world's transition to sustainable transport. It also outlines Tesla's product portfolio — including the Roadster, Model S, and forthcoming Model X — as well as its financing and technology licensing activities. The profile draws on Tesla's 2014 Annual Report and contemporary news sources.
- Introduction: Tesla's founding, growth, and 2010 IPO
- Leadership: Elon Musk's role as CEO and visionary
- Geographic Scope: Tesla's U.S. and international market presence
- Mission and Vision: Sustainable transport mission and company vision
- Products and Revenue Streams: Vehicle lineup, leasing, and technology licensing
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What makes this paper effective
- The paper is well-organized into clearly labeled thematic sections, making it easy to navigate as a company profile.
- It balances factual business data (IPO figures, market rankings, revenue sources) with broader strategic context, such as the franchise dealer conflict and international growth trajectory.
- Citations from primary sources (Tesla's annual report, Tesla's own website) alongside journalistic sources (Wired, Engadget) lend the profile credibility appropriate to its scope.
Key academic technique demonstrated
The paper demonstrates concise expository writing for a business profile context. Each section isolates a single dimension of the company — leadership, geography, mission, products — allowing the reader to absorb discrete facts efficiently. This structured approach mirrors standard industry and business school company-overview formats.
Structure breakdown
The paper opens with a brief introduction covering Tesla's founding, market performance, and IPO. It then moves through four named sections: Leadership (Elon Musk's role and background), Geographic Scope (domestic and international markets), Mission and Vision (the company's stated goals), and Products (the vehicle lineup and supplementary revenue streams). References are provided in APA format at the close.
Introduction
Tesla Motors was founded in 2003 by a group of engineers in Silicon Valley who wanted to prove that electric cars could be better than gasoline-powered cars. The company's first car, the Roadster, was launched in 2008, and the second car, the Model S, was launched in 2012. The company has been a major success since its inception, and while it was still not turning a profit at the time of this writing, its revenues were increasing and its losses were diminishing (TeslaMotors.com, 2015).
The company's products have received rave reviews, which has only increased its popularity. There have been some issues, however, with established franchise car dealers, who in some cases launched legal challenges to Tesla's business model — which does not include franchised dealers (Gilbert, 2014). This opposition from established interests has not stopped the company's rapid growth.
In 2010, the company held its initial public offering (IPO), raising $226.1 million. The stock surged immediately and has since increased in value several times over. Among Tesla's notable investors are Daimler and Toyota. The U.S. government also provided Tesla with capital early on, which had already been repaid by the time of this profile (Squatriglia, 2010).
Leadership
The face of Tesla and its CEO is Elon Musk, who also provided much of the startup capital for the company. Musk had previously co-founded PayPal and used capital earned from the sale of that business to help launch Tesla. As the visionary behind the company, he has been influential in its growth and in its ability to attract top engineering talent in Silicon Valley to outperform the established automakers.
Geographic Scope
Tesla is based in Silicon Valley, and the United States forms its core market. Tesla vehicles are sold in 37 states plus the District of Columbia. According to its 2014 Annual Report, the company sells vehicles in the U.S. and Canada, and has also entered Europe, China, and Australia. China instantly became the company's second-largest market, while Norway ranked third. Sales in the U.S. stalled in 2014, but this was more than offset by strong international sales. Tesla is expected to sustain very strong international growth for years to come, and the company was planning to build an assembly plant in the Netherlands.
References
Gilbert, B. (2014). Why Tesla Motors can't sell cars in most of the United States. Engadget. Retrieved March 16, 2015 from http://www.engadget.com/2014/07/17/tesla-motors-us-sales/
Squatriglia, C. (2010). Tesla IPO raises $226.1m, stock surges 41%. Wired. Retrieved March 16, 2015 from http://www.wired.com/2010/06/tesla-ipo-raises-226-1-million/
TeslaMotors.com (2015). Website, various pages. Retrieved March 16, 2015 from http://www.teslamotors.com/about
Tesla 2014 Annual Report. Retrieved March 16, 2015 from http://ir.teslamotors.com/sec.cfm
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