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Can There Be Any Car That Runs On Solely Battery, Less Pollution And Equally Affordable?

474 Words2 Pages

STRATEGIC GOALS OF TELSA • Enter mass market with new car models • Be the first to build a broad network of charging stations for all electric vehicles • Sell patented electric power train components to other automakers Before any product or service is created there should be a problem statement or intent. The search for a solution brings about invention or creation of a product or service. Tesla as a company searches to answer the question. Can there be any car that runs on solely battery, less pollution and equally affordable? The CEO of the company , Elon musk states in the company overview “Our goal when we created Tesla a decade ago was the same as it is today: to accelerate the advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible.” OPERATING CHARACTERISTICS GROSS MARGIN Tesla has remained unprofitable since it went public in 2010. The gross margin shows how efficiently an auto manufacturer runs its manufacturing process to deliver vehicles at prices that can achieve the highest possible profitability. From 2007 to 2014, Tesla showed a gross margin ranging from 87.67% in 2007 to -7.74% in 2008, and the average gross margin was 25.3%. For the trailing 12-month period ending on Sept. 30, 2015, the company's gross margin stood at 25.52%. …show more content…

While its existing models as of 2016 are mainly targeted to well-off individuals, the company is working diligently to reduce the cost of production and vehicle prices to broaden its appeal among middle-income individuals. Tesla is investing at a breakneck pace, putting the company in need of capital and prompting it to issue convertible bonds. Investing in Tesla comes with a lot of uncertainty, and its stock can be very volatile if the company's actual growth path deviates from what the investment community expects from

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