Tesla Motors is an automobile company found in 2003 by a group of like-minded engineers who wanted to make electric vehicles “better, quicker and more fun to drive” (Tesla, 2017). Headquartered in Palo Alto, California, Tesla design manufactures and sell electric vehicles. “Today, Tesla builds not only all-electric vehicles but also infinitely scalable clean energy generation and storage products” (Tesla, 2017). Despite being a young company, Tesla has grown phenomenally in the past few years. In 2008, Tesla launched the Roadster, newest battery technology and electric powertrain.
From there, Tesla designed the world’s first ever premium all-electric sedan – Model S, followed by Model X in 2015. And, in 2016, Tesla announced Model 3 that began production in 2017.Majority of Tesla production take place at Tesla’s factory in Fremont, California. This is one of the world’s most advanced automotive factory. To achieve its planned production of 500,000 cars per year by the end of 2018, Tesla is centered around accomplishing the world’s most automated manufacturing system. For that, “Tesla has already increased the production rate at its Fremont factory by 400 percent” (Tesla, 2017).
To reach its goal of producing 500,000 cars per year, Tesla alone will require the majority of all supply of lithium-ion batteries. Therefore, Tesla Gigafactory was born in June 2014 outside Sparks, Nevada to provide enough battery supply to support Tesla’s projected vehicle demand. As Tesla work through its production difficulties, in specific, relate to Model 3 battery production at the Gigafactory, Tesla continues to invest heavily in factory automation. Elon Musk, founder, and CEO of Tesla has a goal to “build the machines that build the machine”, as the company focus on the improvements in production speed and quality, while lowering overall vehicle production costs. Tesla Roadster is the quickest electric sports car in the world with record-setting acceleration, range, and performance. It could reach 60 miles per hours in 1.
9 seconds. This sports car could seat four people and could go 620 miles on a single charge. Starting at $200,000, Tesla Roadster targeting high-end niche market.
Followed by the Roadster, Tesla received attention in 2008 when it unveiled Model S. Model – S sedan is all electric luxury vehicle. Moreover, as Vance (2015) described,It could go more than 300 miles on single charge. It could reach 60 miles per hour in 4.2 seconds (and 2.5 seconds with P100D Model S). It could seat seven people if used the optional rear-facing seat in the back for kids.
It also has two trunks. There is the standard one and then what Tesla calls a “frunk” up front, where the engine would be. There is more, for instance, the door handles, which are flatted with the car’s body until the driver got close to the car. Then the handles would pop out, the driver would open the door and get in, and the handles would flatten in with car’s body again. Once inside, the driver is provided with a seventeen – inch – touchscreen that controlled majority of the car’s function, including volume control, internet connection or opening the sunroof, and more. Moreover, the driver didn’t need to turn a key or even push a button to start the car. Driver’s weight in the seat is coupled with a sensor in the key fob is enough to activate the vehicle.
Made of lightweight aluminum, it is rated as one of the safest cars in the history. In addition, it could be recharged for free at Tesla’s station located across the United States and around the world (to some extent) (Vance 2015, p. 264).Where the car starting at $97,500 is a perfect luxury car for individual looking for a high-performance electric car. This car is mostly attracted to successful business executives and entrepreneurs, or wealthy upper-middle-class families.
Whereas, the Model X, which was Tesla’s merge to SUV and minivan built of Model S foundation. Model X could go up to 289 miles on single charge. It could reach 60 miles per hour in 2.5 seconds. Just like Model S, Model X also has two trunks and comes with a seventeen inch – touch screen that provides majority of car’s functions. Unlike Model S, “Model X has the most storage room of any sports utility vehicle and seating for up to seven adults.
Designed to maximize passenger comfort, the second and third row in the seven-seat option is capable of folding flat and flush, creating extra cargo space. Available in three custom seating configurations, Model X can be optimized to suit the specific needs of you and your family” (Tesla, 2017). This provides best interior storage space to carry enough people, baggage, and more.
In addition, the Model X comes with “falcon-wing doors” which are “hinged versions of the gull – wing doors found on some high-end cars like the DeLorean” (Vance 2015, p. 295). Each door opens in a way that the Model X won’t rub against a car parked close to it or hit the ceiling in the garage.
These doors provide access to the second and third-row seat. Which give enough space for parents to comfortably buckle children in, without bend over or twist at all. Model X is the safest SUV ever, with standard active safety features such as cameras, sensors, forward facing radar see through heavy rain and fog. Where the car starting at $80,000 is a perfect family car without compromise.
Model X is an excellent example of a mother-friendly car, age around 30 – 50; upper-middle-class families. The storage room in the car and falcon wing doors are designed to travel comfortably with children. Unlike Model S and Model X, Model 3 is smaller, more affordable electric car. Although Model 3 is the newest Tesla vehicle, Model 3 is not the most advanced vehicle. However, it still has plenty of pickups, effortlessly going from zero to 60 mph in 5.1 seconds, getting 310 miles on a single charge is the safest car. Just like Model S, Model 3 “doesn’t have a key or a key fob. Instead, it syncs with your phone through a Bluetooth connection and will automatically unlock as you approach.
The backup in case your phone dies or you need to hand it off to a valet is a thin key card that you can keep in your wallet” (Randall, T. 2017, July 31). Stepping into the cabin, driver is provided with fifteen-inch central touchscreen to manage car functions. In addition, “the driver is provided with plenty of extra cup holders and door pockets. Meaning, unlike Model S and Model X, the Model 3 is designed to be a daily car. The Model 3, still looks and drives like Tesla luxury car only cost $35,000 for standard battery (220 miles range) and $44,000 for long-range battery (310 miles range)” (Randall, T. (2017, July 31). The Model 3 is Tesla’s capacity to offer an electric transport for a middle to upper-middle-class families that mostly depends on car’s reliability.
Another characteristic of Tesla is the experience of buying and owning the car. To buy a car, you do not go to a dealership. Tesla sells all their cars directly through its own stores and website. The stores are typically located in a high-end mall.
In addition, whether you buy the car online or in store, Tesla would bring it to your home, office, or anywhere you want it. The company also offer an option to pick up the car at the factory in Silicon Valley. Moreover, the company fixes issues in a manner that people have never seen in automotive industry. To fix any issues regarding the Model S, Tesla’s engineers “tapped” into car’s software through internet connection to make any changes to the software regarding the issue. The company also offer software installment to update new features in the car.
Tesla also has created its own supercharging stations, where drivers can fully charge their car for free (Model 3, pay per charge) in 30 minutes. As company prepares to increase the amount of Tesla vehicle on the roads around the world, these supercharge stations will provide owners to take longer trips, meaning customers can view this car a daily transportation. This could potentially increase company’s sale as people are more interested in buying a car that can be used every day. However, if the latest Model 3 includes some problems with operation, Tesla’s service operation will be tested. Therefore, Tesla’s ability to repair cars through internet connection will help catch potential problems before they blow up into the kind of issues that might hurt customers and brand’s reputation. Tesla has managed to provide everything a Tesla car owner needs to make the commuting in an electric vehicle fun and easy. The clever way to fix any issues not only make company’s service to stand out but it also makes its customers secure for their purchase.
Tesla is making a lot of money from its investors through stock. However, an important driver of the stock price is company’s ability to meet its production goal for the Model 3. Therefore, a miss on production target in the future is the biggest risk factor, potentially causing the stock price to drop. After launch of Model 3 in June, Tesla booked for a massive number of preorders for Model 3. However, after the company released the third quarter update, it confirmed that the major bottleneck with Model 3 production is at Gigafactory. After the release of earnings, “on a conference call with analysts Musk said, “The primary production constraint really, by far, is in battery module assembly” (DeBord, M. 2017, November 02). Due to the issues regarding Model 3 production, Tesla is not able to deliver enough cars to its customers and is under a risk of losing investors, leading to potential drop in stock price and company’s growth.
The future is bright for Tesla as it continues to impact on the automobile industry with its cutting-edge technologies. The company’s remarkable innovation, hardware, and design have been brilliant. From the Roadster to Model 3, they are all dreaming luxury electric car one would want. If Tesla’s engineers continue to develop, cost-effective and alternative energy vehicles for the future of the automobile, it will put Tesla in would map of automotive industry.
Lastly, they are all an absolute example of a perfect vehicle for green-minded people.