Analysis Of A Newspaper Essay On Tesla: Challenges And Recommendations.

About Tesla and The Selected Newspaper

The aim of this paper is to analyse a newspaper article and identify one potential challenge that the concerned firm might witness. The selected organization for this paper is Tesla, which is one of the popular electronic vehicle manufacturers around the world (Shao, Wang & Yang, 2021). This brand emphasizes on improving or retaining business image with the help of effective marketing approaches (Shao, Wang & Yang, 2021). In addition to that, the two selected macro environmental factors, which will influence business growth are environmental and technological factors. The selected newspaper is CNBC news. The objective of this brand is to identify any potential issue, which can pose a serious threat to this business to a huge extent. Lastly, proper recommendations will be discussed for this paper, which will help them to overcome the challenges mentioned above.

Tesla is one of the largest automobile manufacturers around the world that emphasizes on delivering quality service to their range of customers (Shao, Wang & Yang, 2021). In addition to that, the author explained that Elon Musk (the CEO of Tesla) discussed about opening an event for assembly plan of new vehicle in Austin, Texas. The article was published on 7^th April of 2022 (Kolodny, 2022). In this article, the author explained that “Cyber Rodeo” party, which is hosted by Tesla aimed to announce that the brand (or Tesla) will manufacture more than 500,000 of Model Y vehicles each year once production is ramped up (Kolodny, 2022). In addition to that, Elon Musk also revealed the development made by this firm, which includes Cybertruck (Kolodny, 2022). This product or Cybertruck is aimed to produce next year where a new “robotaxi” showed that this approach is highly futuristic (Kolodny, 2022).

The author also explained that Tesla vehicles is comprised of more than 75 per cent fully developed electric cars (Shao, Wang & Yang, 2021). Rising demand of customers for eco-friendly vehicles or sustainable products might influence increase of sales for Tesla in the market. In domestic regions of Australia, the brand witnessed rise of sales by 4 per cent in the last financial year (Shao, Wang & Yang, 2021).

The CEO of Tesla also announced different plans for expanding their experimental driver assistance program for gaining a wider user base (Shao, Wang & Yang, 2021). Tesla developed Austin vehicle assembly plan for two years from ground up. (Shao, Wang & Yang, 2021) Tesla first developed their US car plant in Fremont of California. This venture is jointly owned by Toyota and GM even before Tesla adapted to build Model S sedan as well as Model X SUVs (Shao, Wang & Yang, 2021). With the help of Fremont factory, Tesla aims to maximise production for their Model Y vehicles as well as batteries in Austin (Shao, Wang & Yang, 2021). This approach will also help to produce their unusual trapezoidal pickup under the Cybertruck in Texas (Shao, Wang & Yang, 2021).

The environmental factors play an important role for a brand as it is highly influenced by constant change in customer demand (Chen, Chowdhury & Donada, 2019). Analysing the customer demand, it is observed that concerns or awareness about environment sustainability helped them to understand different requirements or needs of customers (Khan, 2021). In Australia, the brand has been able to continue and expand their business operations, due to favourable environmental policies (Chen, Chowdhury & Donada, 2019). On the other hand, the best-known product manufactured by Tesla is their range of electric vehicles (Chen, Chowdhury & Donada, 2019). These products helped them to establish a sustainable brand image of Tesla in the market (Chen, Chowdhury & Donada, 2019).

Tesla's Business Expansion and Sustainable Approach

As discussed by Kolodny (2022), electric vehicles cause higher emissions as compared to other vehicles, however, it is considered to be more environmentally friendly. Thus, the concerned brand or Tesla might have the power to run this business both in the domestic market as well as in the international market. In addition to that, the author explained that the best-known product and its electric vehicles are highly sustainable as compared to the traditional vehicles comprised of combustible engines (Chen, Chowdhury & Donada, 2019).

Many authors stated that the vehicles or products manufactured by Tesla are highly sustainable (Chen, Chowdhury & Donada, 2019) (Kolodny, 2022). Hence, it is assumed that the brand implemented different measures to analyse the impacts of their products and services (Chen, Chowdhury & Donada, 2019). However, it is proved to be eco-friendly, which further aligns with the environmental policy developed by Australian government (Tesla, 2022).

Figure 1: Lifecycle GHG emissions comparison

Source: researchgate.net

From the above discussion, it is observed that the business sustainable approach of Tesla is effective, which will help the brand with their business expansion in different Australian region.

Technology plays an important role in a business, where a brand might gain the ability to implement different advanced systems for maximising the output without compromising on the quality (Chen & Perez, 2018). The government of Australia is highly concerned with development of infrastructure in business so that the business leaders can gain significant opportunities from the market. In addition to that, continuous government support will help Tesla to implement several technologies or systems in a business (Oussama, 2020). In the long run, this brand might develop futuristic cars and maximise their profit margin or rate of their revenue generation. Constant change in technological demands of customers influenced many automobiles business around the world (Hoelzlhammer, 2018).

On the other hand, Elon Musk emphasized on implementing organizational change for Model Y, which will further influence the employees to adjust with the changes and deliver higher organizational performance (Ahmad & Khan, 2019). Tesla has a strong sense of reliability over a single giant neural network. This is also known as transformers and gaining input from any eight cameras working at once. In addition to that, the brand uses thousands of lithium-ion cells, which is giving power to the vehicle.  Tesla motors can be considered as durable along with capable in cool temperatures.

Rising customer awareness about renewable resources and environmental degradation influenced customers to purchase products which are eco-friendly. On the other hand, this brand is faced with significant challenges, where they fail to every concern of their stakeholders. As a result, lack of communication influenced misinterpretation of brand message. Constantly change in demography or its trends can be time consuming for Tesla. In long run, this will pose threat to the manager as they often fail to understand requirements or needs of their potential stakeholders (Liu, 2021).

Some of the potential issues faced by Tesla due to lack of effective technological factors are rise in expenses. As a result, it will reduce overall effectiveness of the brand and also create a negative impact on their business. In addition to that, high rate of technological change involves both opportunity and threat. Increasing automation in business on the other hand, provides opportunity for this brand. Lastly, implementation of advanced systems is highly expensive, which might reduce their net profit generated by the end of financial year (Ajitha & Nagra, 2021).

Environmental Factors and Business Growth

In order to overcome this challenge, an individual or the brand manager of Tesla can focus on implementing online survey or collection of feedbacks. This will help to increase the level of understanding among workers for the customers they are dealing with. Understanding employee needs or requirements can help to implement appropriate methods that in turn might increase business profit and customer satisfaction (Thomas & Maine, 2019).  

In order to overcome the challenges, Tesla can implement price optimization for the products and services associated with this business. This will help them to reduce the risk of lowered net profit and maximise overall organizational efficiency. As Tesla already has implemented a strong brand image hence, this firm might gain a competitive edge by executing the approach in their business.

Conclusion

Lastly, the paper can be concluded by saying that Tesla is highly influenced by technological and environmental factors. The article was published on 7^th April of 2022. In this article, the author explained that “Cyber Rodeo” party, which is hosted by Tesla aimed to announce that the brand (or Tesla) will manufacture more than 500,000 of Model Y vehicles each year once production is ramped up. In addition to that, Elon Musk also revealed the development made by this firm, which includes Cybertruck. This product or Cybertruck is aimed to produce next year where a new “robotaxi” showed that this approach is highly futuristic. Electric vehicles cause higher emissions as compared to other vehicles; however, it is considered to be more environmentally friendly. Thus, the concerned brand or Tesla might have the power to run this business both in the domestic market as well as in the international market. In order to overcome the challenges, Tesla can implement price optimization for the products and services associated with this business.

References

Kolodny, L. (2022). Tesla CEO Elon Musk hosts ‘Cyber Rodeo’ party to open Austin factory. www.cnbc.com. Retrieved 8 April 2022, from https://www.cnbc.com/2022/04/07/tesla-ceo-elon-musk-hosts-cyber-rodeo-party-to-open-austin-factory.html.

Thomas, V. J., & Maine, E. (2019). Market entry strategies for electric vehicle start-ups in the automotive industry–Lessons from Tesla Motors. Journal of Cleaner Production, 235, 653-663.

Khan, M. (2021). A critical analysis of Elon Musk’s leadership in Tesla motors. Journal of Global Entrepreneurship Research, 1-10.

Chen, Y., & Perez, Y. (2018). Business model design: lessons learned from Tesla Motors. In Towards a Sustainable Economy (pp. 53-69). Springer, Cham.

Chen, Y., Chowdhury, S. D., & Donada, C. (2019). Mirroring hypothesis and integrality: Evidence from Tesla Motors. Journal of Engineering and Technology Management, 54, 41-55.

Ahmad, S., & Khan, M. (2019). Tesla: Disruptor or Sustaining Innovator. Journal of Case Research, 10(1).

Ajitha, P. V., & Nagra, A. (2021). An Overview of Artificial Intelligence in Automobile Industry–A Case Study on Tesla Cars. Solid State Technology, 64(2), 503-512.

Shao, X., Wang, Q., & Yang, H. (2021). Business Analysis and Future Development of an Electric Vehicle Company--Tesla.

Hoelzlhammer, A. (2018). A Strategic Audit of Tesla.

Oussama, S. (2020). Strategic Analysis of EVs electrical energy storage using PEST analysis and Analytical Network Process for Technology Adoption. International Journal of Engineering and Applied Sciences, 5(2), 257281.

Liu, S. (2021, March). Competition and valuation: a case study of Tesla Motors. In IOP Conference Series: Earth and Environmental Science (Vol. 692, No. 2, p. 022103). IOP Publishing.

Tesla (2022) Home. Retrieved 8 April 2022, from https://www.tesla.com/