Martine Eberhard and Marc Tarpening formed Tesla Company in 2003. The company’s development was spurred by creating an electric sports automobile. Elon Musk, a co-founder of Tesla, was one of the persons who contributed financially. At the company’s start, Eberhard served as Chief Executive Officer, while Tarpening served as Chief Financial Officer. Musk served as the company’s chairman from 2004 until 2007, after being fired. He became a significant shareholder in the company after resigning. In 2008, the company created the first electric vehicle and had kept building on its technologies.
Tarpening left Tesla in 2008 as Vice President (Bessen, 2014). He was also responsible for electronic software and electronic engineering development. In 2012, the company released the Model S sedan, which was greatly enhanced by current technology. It stood out in the marketplace because of its high-performance capabilities, particularly the battery option. Later, the business released the Model X crossover vehicle, designed as a sports automobile. The majority of the invention has occurred under the leadership of current CEO Elon Musk.
The firm has achieved significant progress in growth and development, despite the problems that have arisen. As part of their dedication to the use of renewable energy, Tesla Company also established solar energy-focused branches. The automobiles are made in Fremont, and the company’s facility is in California. The company’s primary goal is to increase the transmission speed and achievement of renewable energy worldwide. Its ingenuity has demonstrated to the rest of the globe that electric power can improve people’s quality of life through faster and better automobiles. It is a company that is well-known for its product development and innovation around the world, which is primarily based on the use of renewable energy sources like electric motors and solar power. The organization claims that continued reliance on fossil fuels will result in environmental degradation. The use of electric energy is critical for maintaining a lean atmosphere.
The company has created one-of-a-kind solutions for environmental protection. Creating the power pack, solar roof, and power wall are only a few breakthroughs. They have resulted in continual improvements in people’s lives worldwide. The company has faced several hurdles to become an internationally competitive organization. One of the most significant problems it encountered in 2007 and 2008 was the financial crisis, which halted its development and growth. Some people are opposed to electric automobiles and innovation as a means of environmental protection (Bessen, 2014). Elon Musk’s takeover in 2007 and applying his leadership style resulted in a significant improvement in people’s services and a rise in revenue. A well-structured leadership system is another component that has aided the company’s success.
Biography of Elon Musk
Elon Reeve Musk was born on June 28, 1971, in Pretoria, South Africa. He is a successful businessman from the United States of America. His father is from South Africa, and his mother is from Canada. He spent most of his youth in South Africa, his father’s homeland, with his siblings. While he was ten years old, his parents split, just as he discovered his passion for computers. He taught himself to program at the age of 12 and created the game Blaster (Spisak, 2017). Musk got a Canadian citizen in 1989 and an American citizen in 2002. He married Justine but separated in 2010, after which she married Tallulah Riley and divorced her later. With Justin, he had five children, and with Tallulah, he had five. In 1999, he founded PayPal, which was initially known as X.com. He is also the founder of Space X, which began operations in 2002, and Tesla Motors, which started operations in 2003. In 1989, he graduated from Queens University in Canada and went to Pennsylvania. He earned a bachelor’s degree in economics and a master’s degree in physics from both colleges. Later, he enrolled as a doctoral student at Stanford University in California, where he studied energy physics (Spisak, 2017). He dropped out of school and was a key figure in founding the Zip2 Corporation and the subsequent Internet boom. Corporations were in charge of creating new websites with content.
Compaq Computers purchased zip2 Corporation. Musk was a co-founder of Tesla Motors, which was founded in 2003. It is a business that specializes in the manufacture of solar roofs and electric automobiles. In 2008, Musk became the CEO of Tesla, which later became Tesla Inc. in 2017. He has been in charge of the firms’ continual implementation of innovative inventions. Beyond General Motors, which had constantly controlled the industry, the firm stated in 2017 that it had become the most profitable automobile company (Spisak, 2017). The company’s development and growth occurred during Musk’s term as CEO. The business introduced the Model 3 Sedan in November 2017 and has subsequently improved its inventions. He has also supervised an increase in weekly car manufacturing during his tenure. As CEO of Tesla, he encountered several problems, particularly following the 2008 financial crisis. He took over as CEO when Eberhard was fired for mismanaging the company’s resources. Musk has used transformative leadership characteristics to transform the organization, resulting in the company’s expansion and growth despite various hurdles.
Many parallels have been drawn between him and Henry Ford, particularly regarding the invention and innovation of new automobile models that do not yet exist in the industry. Musk has produced additional innovations that are undoubtedly well-known around the world, in addition to his work with Tesla and Space X. He created a Hyperloop in 2013, intending to make commuting between large cities easier and faster. In 2015, he invented Al and Neuralink, which focuses on artificial intelligence. His company, The Boring Company, was founded to reduce traffic congestion through tunnel construction. He’s also the creator of a unique High-Speed Train. Following Donald Trump’s election in 2016, he became one of his advisers, focusing on infrastructural projects. He is the creator of the Musk Foundation, a non-profit organization dedicated to exploring space.
SWOT Analysis
When you examine Tesla Motors, Inc., you see an incredibly inventive firm growing year after year because of Elon Musk’s extraordinary mind. They design and build energy storage systems as well as high-performance electric cars. Tesla had sold 107,000 new Model S automobiles worldwide as of 2016. Even though Telsa has declared losses every year since its inception, everyone understands it is the future. Their automobiles are electric and are getting more and more affordable is one of the company’s assets. Tesla isn’t just another auto manufacturer; it single-handedly transforms how people approach everyday driving (Kissinger, 2018). The company has also done an incredible job of building a massive market for electric cars and premium, which is difficult to come by.
Elon Musk has recently been working to make the Tesla Model 3 as affordable as possible to become a more everyday vehicle. Tesla has spent a significant amount of effort ensuring its cutting-edge procedure. The Tesla brand is well-known; everyone knows what it is and who owns it. Elon Musk is very involved in the community. He is now accomplishing incredible things with the Space X program, making him a trustworthy and intelligent individual in the eyes of his customers.
One concern about Tesla is that they had spent much money initially launched. This is primarily due to significant research and development expenditures. Despite the company’s efforts to make the Model 3 vehicle cheap, it is still a premium brand. Unless you want your Tesla to be barebones stock, it will cost much money, deterring the typical buyer.
Even while Tesla is well-known globally, it has little presence in the market, which bothers stakeholders interested in its prospects. The United States accounts for most of its revenues, with China second at roughly 9% (Dalvagas). Also, because Tesla parts are often more expensive than other carmakers, supply chain alternatives are limited. Because of their high prices, it’s difficult for them to expand their consumer base and market share swiftly with only one plant in the United States, located in Fremont, California, limited manufacturing area. It has a capacity of half a million automobiles, which makes it challenging to have people preorder cars and efficiently manufacture and distribute them. Tesla has done an excellent job of publicizing that they sell the world’s first electric sports cars. However, some individuals are still reluctant to buy since the technology is so speculative that they are unsure whether or not they should invest. Tesla is undoubtedly the most innovative automobile company out there right now, doing good for the environment while also releasing new models regularly.
On the other hand, other auto industries are following Tesla’s lead. Some have committed to start investing twice as much time in developing new electric car options and self-driving technology. If Tesla does not keep growing and produce new things, it will be left behind. The stories of self-driving system faults and odd fires are significant reasons some people are concerned about Tesla. People with families will be conscientious and wait until they receive assurances that their family members will be secure in the car (Bhasin, Hitesh, and Provie, 2018). For them to truly advance, they must discover a means to extend the battery life of their vehicles. Currently, the typical battery life is roughly 220 miles. While this may sound like a lot, this can be a problem for people who travel frequently.
As previously stated, Elon Musk is constantly innovating. Whether it is spaceships, batteries, or flying cars, he is the brains behind it all, and the company’s success rests heavily on his shoulders. They are making a significant contribution to the cause of clean cars and moving away from petroleum and other fossil fuels. The only difficulty is that some individuals are unconcerned. When oil is cheap, it is more comfortable for them to go to the gas station a mile away. Tesla is a trailblazing firm that never stops innovating. They have a clear goal statement and a strong leader in Elon Musk. I am confident that he will continue to revolutionize the globe and daily driving.
Structure of the organization
The corporation’s organizational structure has typically been established to develop the local market, followed by creating the worldwide market. Despite the hurdles, the company’s growth has been aided by the framework based on its foundation, and the organization has stayed relevant and competitive. The new structure has made it easier to carry out its transformational strategy. Unlike Eberhard, who was the initial CEO, change-oriented CEOs like Musk are the best suited in the organization (Bessen, 2014). As a result, transformation leadership is the best fit for the organization because it continually creates new goods and innovations. The organization strives to improve its services and has increased its development and operational efficiency.
The corporation’s international importance is further enhanced by its well-developed management structure. It enables collaboration with all stakeholders, allowing for growth and improvement simultaneously. The top leadership’s primary responsibility is to ensure that all actions are closely monitored. As a result, they have overcome the hurdles that the organization may confront in terms of worldwide expansion and growth. In the company, hierarchy is rigidly adhered to maintain order and allow for the division of work. It has increased mutual respect between workers and management. There is also consolidation in the company to improve the efficiency of decision-making in the corporation.
The responsibilities are evenly allocated among the employees and purely depend on their abilities. When the senior leadership makes a decision, the burden is divided among all concerned departments. The implementation of the factors considered by the administration has been enabled by using the proper management style (DuBrin, 2015). The firm has stayed relevant in the global market thanks to implementing the appropriate management and leadership style, primarily focused on improving client service delivery. As a result, the company has stayed competitive both locally and globally. As a result, the CEO is a fantastic fit for the company, as is his transformational leadership style.
In summary, Tesla has had a significant impact on society. It has enabled people who love technology and creativity to realize their ambitions. Musk’s innovations have an immediate effect on the economy and society. It has improved infrastructure as well as the way international trade is conducted. Tesla’s continual inventions to reduce vehicle energy consumption will also contribute to environmental sustainability. Collisions have been noticed in the transfer of the corporation’s leadership styles, particularly during the transformation from the first to the second CEO.
Reference
Bessen, J. (2014). History backs up Tesla’s patent sharing. Harvard Business Review Blog, 13.
Bhasin, Hitesh, and Provie. (16 May 2018, ). “SWOT Analysis of Tesla Motors – Tesla Motors SWOT Analysis.” Marketing91, www.marketing91.com/swot-analysis-of-tesla-motors/.
Dalvagas, Lason. “SWOT Analysis Tesla Motors Inc.” Value Line – The Most Trusted Name in Investment Research.
DuBrin, A. J. (2015). Leadership: Research findings, practice, and skills. Nelson Education.
Kissinger, D. (2018). Panmore Institute. Tesla Inc. SWOT Analysis & Recommendations.” Panmore Institute, panmore.com/tesla-motors-inc-swot-analysis-recommendations.
Spisak, A. (2017). Elon Musk and the Quest for a Fantastic Future by Ashlee Vance. Bulletin of the Center for Children’s Books, 70(5), 241-241.
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