In this day and age, with the rise of technology and with the onset of limited resources, companies are looking to minimize waste and maximize profit while still upholding the product standard. With the growing concern over the use of fossil fuels and its impact on the environment, companies want to minimize their carbon footprint and find a solution to minimize the use of fossil fuels. Tackling this crisis head on is Elon Musk and his company Tesla Inc. What Tesla has managed to do in a short amount of time that they have been in existence is far greater than what any other automobile company has achieved. Henry Ford revolutionized the automobile industry with his assembly line and Toyota with their JIT (Just-in-time) workshops, similarly Tesla Inc is revolutionizing the electric automobile industry with their range of electric vehicles. As the market is still dominated by fossil fuel based automobiles, does Tesla have what it takes to challenge the behemoth automobile industry with its electric vehicles? The market structure and market share that Tesla currently holds is very small in comparison to other automobile companies.
Tesla Motors was founded in 2003 by a group of Silicon Valley engineers who were trying to find a sustainable means of transportation without having to compromise power and speed. They were looking to revolutionize the automobile industry with electric vehicles. The mission statement of Tesla Inc., is “to accelerate the advent of sustainable transport.” Their first electric vehicle was launched in 2008 and named Roadster. Since then, Tesla has not looked back and they are steadily building their portfolio with the launch of Model S, Model X, Model 3 in 2012, 2015 and 2016 respectively. An updated version of Model 3 known as Model Y was launched recently in March 2019. Tesla also plans to include all Electric Semi-Trucks, a new and improved Roadster in 2020.
Tesla as a company has never enjoyed a smooth ride. From the beginning they have had to hire and fire many leaders until finally settling with Elon Musk, the haughty, risk taking CEO who took charge in 2008. Since Elon Musk had amassed considerable wealth from his sale of PayPal, he had the ability to take risks on ambitious business ventures. Musk has also not been shy to speak his mind on current topics, which has led to problems for the company. Since his arrival, Tesla Inc., has turned into a company that is of far greater value in the electric vehicle market share. Though Tesla has had success, they have recently come under pressure for their vehicles. Tesla vehicles use highly complex algorithms in their system, which like all other algorithms are subject to issues that can lead to potential challenges and problems. Their recent problems have been related to autopilot mode, braking system, problems in the manufacturing process and delay in delivery. Tesla is becoming increasingly more volatile and people are starting to question the product.
In a world where most car manufacturing companies have a 100-year history, Tesla Inc. rose against the odds. The interest in electric cars only grew over time as people started to notice the impact of gasoline use on the environment. The advent of the energy crisis and the impact on the environment pushed motor companies to search for alternative energy sources. Several motor companies including General Motors (GM), Toyota, Chrysler and others designed electric and hybrid cars that offered the public with low cost, fuel efficient options. But despite their best efforts, electric cars were never known for superior performance. Most electric cars were considered to be low range, low speed vehicles, unsuitable for long distance travel. These issues made electric cars an unsatisfactory investment because of their inferior performance when compared to regular gasoline cars.
This however has changed with the arrival of Tesla Motors. Tesla entered the industry with the intention of developing a car that was not just better than the current electric cars in the market but also better than gasoline cars. They wanted to design something that would be everyone’s first choice rather than a compromise. Elon Musk is turning out to be the modern day messiah who will bring salvation from energy mongers and help us retain a sustainable, environment friendly lifestyle.