Assist me with a case study on Tesla

[jjminch]

Good afternoon everyone. New member here, and I'm enjoying reading about the cars. I'm an MBA student and for our group project we decided to do a Case Study on Tesla.

From our initial research, it appears Tesla has two business models: in-house vehicle production and selling parts/technology to other manufacturers.

We need to recommend if they should continue supporting both models, or focus solely on one. As a car guy myself, I knew there was a forum somewhere where I'd get plenty of opinions on this. Would appreciate any replies, especially if there are articles and sources you can provide.

 

[Johan]

Read the quarterly reports from the very beginning of the company (http://ir.teslamotors.com), and read Elon's "master plan": http://www.teslamotors.com/blog/secret-tesla-motors-master-plan-just-between-you-and-me

If you use a couple of hours on that you'll have the whole picture in front of you. It's all very simple and really there is no secret to it.

 

[aznt1217]

As an MBA student myself I think what would be helpful is just understanding what they do for Daimler and Toyota. I would start there. It's all very subjective and it depends on the class context. They make power trains for these makers (B class, Smart E, and Rav4). There isn't much to it... Until you look at context of class. All their SEC filings and annual letters are enough to tell you what they do/did.

 

[TheTalkingMule]

An important thing to remember is that maximizing profit is not Tesla's #1 priority. Probably not even in the top 3 or 4.

 

[NigelM]

Would appreciate any replies, especially if there are articles and sources you can provide.

Ummm, hope you've heard of Google? (Sorry, there was no politer way to put that)

 

[Doug_G]

Nigel has a point.

We've been getting a ridiculous number of surveys posted on TMC - many from MBA students - to the point where we've started to banish them. The forum would be full of the things if we allowed it. At least this thread is just asking for opinions, rather than posting yet another silly survey.

At this rate we'll have to make an MBA Student section...

 

[Raffy.Roma]

An important thing to remember is that maximizing profit is not Tesla's #1 priority. Probably not even in the top 3 or 4.

+ 1

 

[Grendal]

An important thing to remember is that maximizing profit is not Tesla's #1 priority. Probably not even in the top 3 or 4.

Exactly right. The supposition of your study implies that by dropping making powertrains and simply focusing on making cars might be beneficial to Tesla is focusing on profit. Tesla is not about profit as TheTalkingMule commented. Tesla is about advancing the adoption of electric vehicles by whatever means possible. Dropping the powertrains to focus on their own cars would be against what Tesla is about.

Good luck.

 

[rolosrevenge]

Nigel has a point.

We've been getting a ridiculous number of surveys posted on TMC - many from MBA students - to the point where we've started to banish them. The forum would be full of the things if we allowed it. At least this thread is just asking for opinions, rather than posting yet another silly survey.

At this rate we'll have to make an MBA Student section...

Yeah, I think this whole question smells of "I don't want to do the research." You should have already read all of the relevant articles and then posted your opinion on why or why not Tesla should stick to one path over the other and then see what we have to say about that.

 

[aznt1217]

Yeah, I think this whole question smells of "I don't want to do the research." You should have already read all of the relevant articles and then posted your opinion on why or why not Tesla should stick to one path over the other and then see what we have to say about that.

My point exactly.

 

[artsci]

My point exactly.

Agree. This student should have done I lot more research and homework before posting here. Otherwise its an qaulitative opinion survey

 

[Clprenz]

Go ahead and email me with any questions! Email: [email protected]
I have studied Tesla for over a Year, invested Summer 2012. This also prompted me to start up a paper on this. I have done a research report on the Giga factory idea if you would like to see that. Thanks,
Christian Prenzler

 

[Right_Said_Fred]

An important thing to remember is that maximizing profit is not Tesla's #1 priority. Probably not even in the top 3 or 4.

I don't quite agree. One of the top priorities of Tesla is to maximize profit (see price increases). However, not for the purpose of handing it out to stock holders. But to invest in the development of even better or more affordable electric cars (Model X, Model E) and to invest in a supercharger network that is putting to rest the range anxiety argument.

 

[Mario Kadastik]

You are in the end agreeing on content, but making profit as a company means the whole shebang, not per car. Teslas priority isn't profit, it's the EV revolution and growing the whole company to accommodate this future. So the EPS might suck because they'll constantly utilize any gross profit for growth. That's what was meant as profit not being a priority...