With the recent polar vortex occurrence in the midwest and the increasingly volatile climate, it is imperative for companies to turn to sustainable methods. Thus, as a society, we must turn to one of the main products that we utilize in our daily lives: cars. Tesla’s mission to assist the world’s transition towards a zero-emission society pushes itself to become the forerunner in the sustainable-focused automobile industry today. The company sees the future as a world completely reliant on renewable energy.
Tesla’s business revolves around their ecocentric management; the corporation prioritizes actively working towards improving the quality of life for all of its customers and stakeholders alike. The company continues on its path of sustainable growth as it aims to benefit the future generations. Their business view influences and contributes to some of the company’s strengths, like financial support from the United State’s Department of Energy’s support due to their green efforts. Their goals push them to create rapidly improving battery technology for electric vehicles, giving them “leadership in electric power technology” without compromising the sleek design that consumers cherish. Not only that, but they aim to be as financially conscious as possible – they currently sell their vehicles from their own Tesla stores to reduce middleman costs.
In another effort to maximize their revenue, Tesla turns to concentric diversification by expanding on its sustainable mission. The company has also begun selling other battery packs, chargers, and powertrains to other car companies such as Toyota. By improving their green technology, Tesla has also dipped into manufacturing solar roofs and powerwalls for consumers to power their lives.
After briefly researching the company and its controversies over the past year, it appears that Tesla’s CEO, Elon Musk tends to address public meetings in a very casual – sometimes rude – manner. On May 2nd, during a review of Tesla’s first-quarter report, Musk refused to answer questions brought up by analysts. He opted to answer questions that skirted around Tesla’s financial issues. The public quickly picked up on his attitude, leading to a 8% drop in Tesla’s stock in sheer hours after the meeting. Although Musk apologized through social media, his streak of questionable public relations continues.
It was understandable why Musk wanted to skirt around Tesla’s financial affairs, as one of the corporation’s prevailing weaknesses is that they have had profitable margins. Tesla’s electric vehicles are currently rising in the market and establishing its place as a star, but it still requires extensive investments. Thus, the company’s position is quite precarious: the management itself came clear to say that their expenses are expected to rise due to their continuous production of automobiles. With their inexperience with volume manufacturing and customer hesitancy to jump into a world of new electric-powered cars, Tesla can only be continue to be optimistic towards the future of their company.