Module 2 – Case

Planning

Assignment Overview

Tesla Motors is a unique company that manufacturers automobiles that run 100 percent on electricity. The company has received a lot of attention in the media. In spite of loans from the federal government and various tax advantages given to alternative fuel vehicle manufacturers, the company has had huge ups and downs and has come close to bankruptcy at least once. However, it has recently had enough success to repay a large loan from the government.

Initially Tesla only produced expensive sports cars that only the very rich could afford, but the company is now expanding into producing more cost-effective vehicles. In spite of recent successes, Tesla does face many hurdles. It is a relatively small company compared to the world’s major auto manufacturers. It faces competition from hybrid vehicles that are much cheaper, such as the Toyota Prius. Nissan has even come out with a relatively inexpensive fully electric vehicle—the Leaf.

Consumers may also be unwilling to face the inconvenience of a fully electric vehicle. There are few recharging stations compared with gas stations in the United States, and it takes far longer to recharge an electric vehicle than to fill a vehicle up with gas. So while there is large public support for environmentally friendly vehicles that will lower our dependence on foreign oil, Tesla faces many obstacles and must carefully plan its future in order to compete with the large auto companies and expand its consumer base.

Do some research on Tesla and the market for electric vehicles and see what you can find regarding Tesla’s strengths, weaknesses, opportunities, and threats. Here are a couple of articles to get you started:

Tilley, P. (2014, Feb 20). Tesla Motors offers the epitome of automobile innovation. The Dispatch[Available on ProQuest]

Rechtin, M. (2014). Tesla’s biggest test. Automotive News, 88(6603). [ProQuest]

Mandel, D. (2013). The great Tesla bubble. Automotive News, 88(6590) [Available on ProQuest]

Case Assignment

Once you have completed your research, write a 4- to 5-page paper addressing the following items:

1. Conduct a SWOT analysis of Tesla Motors with specific discussion about what you think are the main strengths, weaknesses, opportunities, and threats facing Tesla.
2. Based on your SWOT analysis, give some recommendation for some specific steps Tesla should take in order to grow and remain competitive.

Assignment Expectations

• Answer the assignment questions directly.
• Stay focused on the precise assignment questions; don’t go off on tangents or devote a lot of space to general background materials.
• List supporting references and cite sources in proper format.
• Use appropriate writing style in essay form (organization, grammar, and spelling).
• Review Trident’s “Writing Style Guide” for more detail on referencing and writing expectations. This guide is found under “My Resources” in the TLC portal.