Tesla Motors: Global Business Challenges and Recommendations

BBA Year 1, Islington College

In this video, we have researched about Tesla motors and it’s products, their current CVF model of management, conducted an in-depth analysis of Tesla motors by using PESTEL and SWOT analysis, identified the major culprit and challenge of the company and also provided valid recommendations.

Module: Global Business Challenges (MN4050)

Company: Tesla motors

Team member:
Atul Pradhananga
Jasmi Gurung
Ashmina Karki
Monica Singh

Hope you guys like it.

And yes, like, share and subscribe!

If you are short in time, below is the summary of the video:


Tesla Motors was founded in 2003 by a group of Silicon Valley engineers who set out to prove that electric vehicles is the future.

The current CEO of the company, Elon Musk stated that the vision of the Tesla Motors is to “accelerate the world’s transition to electric mobility with a full range of increasingly affordable electric cars.”
Its headquarters is in Palo Alto, California. It has stores in over 125+ countries with 6000+ employees.

1. Tesla Roadster (out of production)
2. Tesla Model S (Car of the year, 5-star safety awards)
3. Tesla Model X (to be released on 2015)

CVF model
Tesla Motors primarily operates in Open system model because it relies heavily in creative problem-solving, political adaptability, innovative ideas and management of change. Plus, having a shared vision and values is crucial.

Main Global Challenge: Technology

Implications of challenge:
1. It is very inconvenient to the Tesla owners to charge their car for 4-5 hours every 200 miles.
2. Tesla has not been able to deliver their product on time due to delayed time in production
3. Due to rising cost of lithium and lack of mass production, the manufacturing cost if rapidly increasing.
4. Big autos including Ford, Toyota, Audi, Mercedes and General Motors are investing both time and resources toward stealing market share from Tesla in the niche EV space.
5. Due to the high price and inconvenient battery power system, Tesla is having a very hard time entering the mass market.

1. Producing lithium ion batteries in their own Giga-factories will help reduce their cost drastically
2. Increasing their scale of manufacturing will not only help lower the manufacturing cost, but also help Tesla fulfil the market demand
3. Increasing the battery capacity and shortening the charging period will make driving Tesla more convenient
4. Addition to that, adding a solar panel on the roof of Tesla cars can also help minimize the battery issue
5. And the most important, to achieve the goal of producing 500000 cars by 2020, following a rational goal model of management is not only crucial, but imperative.

If you liked this post and want more of these, do let know in the comments below.

Atul Pradhananga


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