Tesla's Financial System

INTRODUCTION

Tesla Motor, whose head office is located at Palo Alto, in the Silicon Valley,is a car manufacturer which has been founded in 2003 by Martin Eberhard and Marc Tarpenning. One year later, three investors joined the board: Ian Wright ,JB Straubel and Elon Musk, who is currently the CEO and principal investor of the company. Tesla is currently worth $47,400 million with $7billion in revenues, and 10,000 employees.The company has grown from a single retail store in 2008 to at almost 75 stores worldwide in North America, Europe, Asia and Australia. The company operates in the automobile industry producing and supplying light vehicles and charging stations , with other significant intrests in energy solutions and space programs.

Organization possesses the mega industrial facility in Tesla's processing plant in Fremont, California is one of the world's most developed automobile manufacturing plants, with 5.3 million square feet of assembly and office space on 370 acres of land. Following the City of Fremont's endorsement of Tesla's development designs

To help the incline of vehicle creation to 500,000 autos a year by 2018, Tesla is centred around accomplishing the world's most mechanized assembling frameworks while guaranteeing its substantial manufacturing plant workforce is prepared in the propelled abilities exceptional to Tesla's generation forms. To date, Tesla has officially expanded the generation rate at its Fremont manufacturing plant by 400 percent, a rate that will just increment as Tesla inclines creation of Model 3 of every 2017. Tesla dependably goes for the most noteworthy conceivable level of vehicle craftsmanship, with each Model S, Model X and Model 3 worked in Fremont, where by far most of the vehicle's segments are additionally

Transportation:

Since Tesla produces and assembles the automobiles in one giant factory located in Fremont, California , thus the transportation budget is set really high.

On land, Tesla uses mainly large trailer trucks and railways to transport its vehicles in and around United states to transports its vehicles, whereas using ships to transport its vehicles to its showrooms spread across four continents

Transportation costs are huge in the organization's business and in this manner, the market cost of fuel assumes a noteworthy part because of its unpredictable nature. This changes in cost are by and large managed the way toward supporting which allow them at locking fuel costs

Pricing

Tesla has this unique system of ordering wherein they have eliminated the need for dealerships and maintaining an inventory , as the cars a made to order via website and shipped to the nearest showroom of the