Tesla is the company that revolutionized the car transportation industry by electrifying it whilst maintaining its focus on sustainable energy. Tesla’s manufacturing isn’t limited to electric cars as it manufactures sustainable accessories and apparel as well.
Elon Musk is the CEO of Tesla, but the company was founded by him alongside Martin Eberhard and Marc Tarpenning. The company accomplished the task of creating the first-ever sedan that works solely on electricity.
Tesla is the top battery electric passenger car manufactures company in the world and one of the biggest installers of solar photovoltaic systems in the US.
The company managed to generate a revenue of more than $30 billion in 2020, credit for which goes to its unique business model and the thought behind the creation of the company in the first place.
Let us dive into the thought process that went behind the creation of Tesla and how it contributed to the creation of the biggest electrical vehicle manufacturing industry in the world.
Thought Behind Creation Of Tesla
As we know, Tesla Motors was created by a trio of engineer friends in 2003. Since Elon Musk contributed to the majority of the company’s funding, he became the company’s CEO in 2008.
The name ‘Tesla’ is a tribute to one of the greatest electrical engineers and inventors of all times: Nikola Tesla. The primary thought that went into the creation of Tesla Motors is that the trio wanted to create a future where there is zero emission.
They believed that if every car starts working on either electricity or uses sustainable energy such as solar energy, there wouldn’t be any emissions. Moreover, it would also lead to the generation of clean energy and storage products.
Clinging to their thought process and aim, Tesla created the first electric car, Roadster, in 2008. However, it was discontinued in 2012 as the company shifted its focus towards creating an electric Sedan and expanding its product line.
Before we move on to the business model of Tesla, let us look at the various products provided by the company. The range of products offered by Tesla would help you understand its way of conducting business in a better way.
Products By Tesla
Tesla has manufactured the following types of electric cars, SUVs, and battery energy storage systems and equipment that works with the help of Solar energy.
1. Electric Cars and Trucks
If you’re someone who believes in sustainability and is willing to invest a considerable amount of money in electric sports cars and SUVs, then you should check out the sports cars made by Tesla.
Tesla has launched a range of electric SUVs that provide various features such as Autopilot, safety, and efficiency. The Model S was the first electric SUV, followed by Model 3, Model X, and Model Y.
Out of all the models, Model X is the safest and quickest electric SUV with a five-star safety rating. In addition to electric cars, Tesla also launched its electric truck models, Tesla Semi, along with a Cybertruck, that provides much better performance than a sports car.
2. Sustainable Energy Ecosystem
Tesla’s energy sector grew to 6% in 2020, indicating its importance, especially solar energy. The company has launched various products such as Solar Roof with the help of its subsidiary company SolarCity Corp.
In addition to it, Tesla is the first company to make Vehicle Batteries for vehicles in collaboration with Panasonic.
Apart from Panasonic, Tesla has formed partnerships with corporations such as Daimler AG, Mobileye, and Toyota, contributing to Tesla’s development of electric vehicles and various features.
3. Additional Merchandise
Apart from the automobile and solar products, Tesla offers various additional merchandise and other products as well. Tesla offers wireless smartphone chargers, custom mugs, thermoses, caps, and branded clothes, along with a small Model S especially made for kids!
In addition to it, in the summer of 2018, Tesla releases a limited number of surfboards priced at $1,500 each.
Business Model Of Tesla
Tesla has been crystal clear about its aim and doesn’t intend on diverting away from it. Therefore, Tesla’s business model has been based on creating a new demand for electric vehicles rather than focusing on the existing demand for an affordable car.
Once Tesla created its brand identity with Roadster, an expensive electric sports car, Tesla started to focus on maintaining the car by setting up multiple charging stations worldwide and enhancing the ownership experience.
The focus shift led to Tesla generating $2.3 billion just by the services provided by it. Moreover, Telsa’s solar revenue also spiked at $2 billion in 2020, while its automotive sector grew and generated a revenue of $27 billion.
One of the biggest plus points of Tesla’s business model is that Tesla directly sells the car to its consumers by creating an international network of Tesla showrooms. In addition to it, the supercharger network and Tesla Rangers ensure proper service of the cars at regular intervals.
However, just like any major company, Tesla is not exempted from controversies. The following are some of the controversies around Tesla that contradict its aim of the welfare of people and sustainable development.
Controversies Surrounding Tesla
Controversies surrounding Tesla or controversies surrounding Elon Musk? Despite being a future-oriented company that focuses on sustainable development, Tesla has been in quite a lot of disputes regarding the safety of its vehicles and employees.
Tesla has been under a lot of fire since it has been fined for hazardous waste violations and worker safety and rights. During the COVID-19 pandemic, Musk wanted Tesla’s factory to be exempted from work-from-home orders and fired some employees for questioning or criticizing his decision.
It is not the first time that Elon Musk’s remark has landed Tesla in a controversy. Before that, some of his tweets resulted in the company bearing multiple lawsuits and a heavy loss concerning the company’s founding.
Final Words
Tesla’s dedication to creating a sustainable future is what made it the top electric vehicle company globally.
Moreover, Tesla has always prioritized the quality of its product instead of its affordability. However, Tesla is planning to create a more affordable electric car that most people can use.
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