1.

Brief description of the organization:

a. Name and type of business organization
The name of organization that we chose to make this assignment is
Tesla, Inc. Tesla is organized as a for – profit, publicity owned company
that has a functional organizational structure mixed in with hierarchy
structure. This is because Tesla use different functional centers to
cover all business activities.

b. 3 strategic reasons why you choose this organization:

i. The way in which the company has been able to adapt to
the environmental concerns of today’s society.
ii. Have innovation as a key point to compete in a fierily
competitive market.
iii. The fact that the company has been one of the pioneers in
the creation of electric vehicles.

c. Date of formation:
1, July of 2003. It was founded by American entrepreneurs Martin
Eberhard and Marc Tarpenning.

d. Historical overview with KEY transformations.

● The beginning and Nikola Tesla's vision: Tesla Motors was founded in
2003 by Martin Eberhard and Marc Tarpenning in honor of Nikola Tesla. This
choice of name established a connection with the inventor's vision and
innovation.
● Elon Musk's investment and leadership (2004): The inclusion of Elon Musk
in 2004, with a significant investment and assuming the role of Chairman of
the Board, provided financial stability and a visionary leader that was crucial
for future success.
● The first Tesla Roadster prototype (2006): The creation of the first Tesla
Roadster prototype demonstrated that fully electric vehicles were practical,
changing the public's perception of electric cars and paving the way for future
Tesla products.

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● Transformation from prototype to viable product (2007): The appointment
of Ze'ev Drori as CEO in 2007 was a turning point as he played a crucial role
in transforming the Roadster from a prototype into a viable product.
● Production of the Tesla Roadster (2008): The start of Roadster production
marked a significant milestone in the introduction of electric vehicles to the
mass market.
● CEO change to Elon Musk (2008): Elon Musk assumed the role of CEO in
2008 and unveiled ambitious plans for the Model S, solidifying his leadership
within the company.
● Legal and financial challenges (2009): Martin Eberhard's lawsuit and
financial difficulties due to the 2008 economic crisis presented significant
challenges but were overcome with investments from Daimler and financial
support from the Department of Energy.
● Strategic partnerships (2009): Investments from Daimler and a loan from
the Department of Energy strengthened Tesla's financial position and marked
the beginning of collaboration in battery technology.
● Initial Public Offering (IPO) in 2010: The IPO in 2010 provided additional
funding and increased the company's visibility in financial markets.
● Introduction of the Model S (2011): The unveiling of the Model S with
impressive range and performance set a high standard for electric vehicles
and reinforced Tesla's position in the market.
● Diversification into energy (2015): The introduction of home rechargeable
batteries marked Tesla's transition from being merely an automobile
manufacturer to an innovative energy company.
● Development of Autopilot technology (2015): The Autopilot initiative with
sensors and radar systems represented a milestone in autonomous driving,
although it was impacted by an accident in 2016.
● Acquisition of SolarCity (2016): The acquisition of SolarCity was strategic
for creating integrated solar and battery energy solutions, as well as for
developing autonomous driving technology.
● Name change and Model 3 launch (2017): The name change to "Tesla, Inc."
and the launch of the more affordable Model 3 expanded the company's
scope and mission.

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● Electric truck prototype (2017): The unveiling of the electric truck prototype
in 2017 signaled Tesla's expansion into other segments of the commercial
vehicle market.
● Focus on Autopilot and battery technology (recent years): The
concentration on improving Autopilot features and battery technology is an
ongoing strategy to maintain competitiveness in the market.

e. Brief description of products and / or services

Tesla, Inc. is an innovative company in the field of electric vehicles and

energy technologies. Their product range includes a variety of electric
vehicles, ranging from affordable models like the Tesla Model 3 and
Tesla Model Y to more expensive models such as the Tesla Model S
and Tesla Model X. These vehicles are renowned for their high range,
impressive acceleration, and cutting-edge technology integration.

Tesla also offers charging services through its Supercharger network,

making long-distance travel more convenient. Additionally, the
company provides solutions for residential energy storage, like the
Powerwall, enabling individuals to store solar energy for later use.
There's also the Megapack for commercial use. Tesla is committed to
developing renewable energy solutions for the future, including Solar
Panels and Solar Roof.

Finally, Tesla is at the forefront of autonomous driving with its Autopilot

software, offering advanced driver-assistance features, and it aims to
develop fully autonomous vehicles in the future.

f. Key financial information

Founded in June 2003 in California, Tesla quickly gained prominence

with the arrival of Elon Musk as CEO in 2008. The pivotal year of 2010
witnessed Tesla's initial public offering, marking the beginning of an
impressive financial trajectory. Currently, Tesla boasts a valuation of
over $670 billion, with a market capitalization reaching $750 billion.

In terms of financial performance, Tesla's figures are equally

remarkable. Over the past seven quarters, the company's revenue has

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experienced steady growth, surpassing €45 billion in the first half of
2023. The year 2022 saw revenue exceeding €75 billion. The net
income is equally impressive, standing at over €11 billion.

Regarding production, Tesla manufactured over 1,350,000 vehicles in

2022, solidifying its position as a leader in the electric automotive
industry. Furthermore, the company produced 6.54 GWh of battery
energy storage systems and 348 MW of solar panels in 2022.

Tesla also employs an impressive workforce of over 125,000

employees, demonstrating its global scale.

In summary, Tesla is a company that has achieved remarkable financial

and production milestones while playing a significant role in the
transition to a more sustainable future.

g. Key competitors

As noted in e, Tesla covers a wide range of products and services.

However, the key products are only the vehicles and the charging
stations.
Looking at the industry, it can be said that it has undergone a major
transformation in recent years. Large established companies, which
have historically dominated the market unchallenged, have lost their
position especially to emerging companies like Tesla.

From Tesla's perspective, your competitors are, in the first instance, the
incumbents, some of whose market share you took early on. In
addition, Tesla has permanently changed the market of the automotive
industry with your initial progress in topics of electric mobility and
connectivity.
Accordingly, in addition to established automotive suppliers, there are
also car manufacturers that are only specialized in the electric vehicle
market or car manufacturers that have changed their strategic
orientation towards electric vehicles (show example). In the electric
vehicle segment, Tesla is the most influential manufacturer with 65.4%
share of global electric vehicle sales in 2022.

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This change in the vehicle market, which for many years was controlled
by a few major powers, has not only made it possible to overthrow their
position, but has also allowed new participants to enter the market.
The cards are being reshuffled and so we see component
manufacturers entering the vehicle market due to the significant
changes in the requirements of a car.
The development of Tesla reinforces this insight, in that especially
shortly after your market entry, large qualitative differences in the
processing, to vehicles of the major powers was to be seen. The
reason for this is definitely the advantage of decades of experience that
these companies, however, this well-known problem has not prevented
the rapid growth of the company Tesla.

The development of the market in terms of the role and relevance of a

vehicle's technology or software has been shaped by Tesla in recent
years. Thus, Tesla has changed the approach from originally "a
software is developed compatible to a vehicle" to "the vehicle is built
around according to the developed software".
At the same time, this means that the former main activities of an
automobile manufacturer, which were the production of components
and the assembly of the vehicle, can now also be outsourced. The key
is in the software, which is why tech giants are in a good position to
enter the market, possibly even a better position than incumbents at the
moment. Experts predict that tech giants like Google can become
serious competitors in the future of the automotive market.

Another challenge not only for companies from the electric vehicle
market but for all vehicle manufacturers will be the trend of the shared
economy. The development shows an increased interest in
non-ownership of vehicles, which in the long term will lead to shrinking
sales for car manufacturers. Successful business models like those of
company x, show the development in this direction. Companies like
Mercedes and BMW are developing first business models to not lose

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 their business to this trend and also for Tesla companies with such a
business model will be a serious challenge in the future.
h. Key markets

i. Data analysis techniques

2. An organisational vision model.

Tesla's business vision closely aligns with several key principles outlined in
Collins and Porras' article on visionary organizations:
1. Core values and beliefs: Tesla's core values and beliefs are
profoundly rooted in their unwavering commitment to sustainability and
innovation. They aspire to spearhead the transformation towards
sustainable energy and transportation through the creation of
state-of-the-art electric vehicles and renewable energy solutions.
These core values are not merely superficial principles but are woven
into the very fabric of Tesla's company culture, embodying a steadfast
and enduring dedication to their mission.

Furthermore, Tesla is unwavering in its pursuit of excellence. The

company continuously strives to deliver the highest quality products
and services. Tesla's commitment to excellence goes hand in hand with
their dedication to ongoing learning and continuous improvement. They
recognize that the quest for excellence is a journey of perpetual growth
and development, leading to the enhancement of their work and
services.

The company make a good balance to preserve their core values and
beliefs while making a constant progress in the market through While
Tesla maintains a strong commitment to their core vision of
sustainability, they are not rigid in their approach. They constantly seek
progress and innovation, pushing the boundaries of technology to
develop more efficient and affordable electric vehicles, energy storage
solutions, and solar products. This flexibility enables them to adapt to
changing market conditions and emerging opportunities.

2. Purpose: Tesla's purpose is to accelerate the world's transition to

sustainable energy. This purpose is encapsulated in the company's

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 mission statement, which reads, "to create the most compelling car
company of the 21st century by driving the world's transition to electric
vehicles." The essence of Tesla's purpose revolves around several key
elements:
a. Sustainable Energy: At the heart of Tesla's purpose is a
commitment to sustainability. They aim to reduce the world's
reliance on fossil fuels and the associated environmental impact
by providing clean energy solutions, primarily in the form of
electric vehicles and renewable energy products.
b. Transportation Revolution: Tesla envisions a future where
transportation is no longer reliant on internal combustion
engines but is primarily powered by electricity. They seek to
revolutionize the automotive industry by offering
high-performance electric vehicles as a viable and sustainable
alternative.
c. Global Impact: Tesla's purpose extends beyond profit and
market share. Their mission is to make a significant global
impact by influencing the way people perceive and use energy.
They aspire to set a precedent for clean energy and inspire
others to follow suit.
d. Technological Innovation: Central to their purpose is the
pursuit of technological innovation. Tesla continually pushes the
boundaries of what's possible in the electric vehicle and
renewable energy sectors, aiming to provide cutting-edge
solutions that drive the transition to sustainable energy sources.

3. Tesla’s Business Model:

Tesla, Inc. has become a trailblazer in both the automotive and clean energy sectors,
earning widespread recognition for its groundbreaking business model that
challenges the conventions of traditional industries. In this comprehensive analysis
of Tesla's business model, we aim to uncover the core elements and tools that define
its extraordinary success. We will explore the strategies that set Tesla apart in terms
of value creation, capture, and configuration, and we will delve into the reasons
behind consumers' preference for Tesla. We'll also examine the economic rationale

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that underpins the company's long-term innovation and viability. Through a detailed
examination of its business model components, analytical tools, the forces driving
change, and consumer preferences, we hope to provide a thorough understanding of
how Tesla has reshaped the automotive and energy sectors.

When it comes to value creation, Tesla effectively addresses a wide range of

customer needs and challenges. This includes environmental concerns, as Tesla
caters to customers looking for eco-friendly transportation options to reduce their
carbon footprint and combat climate change. Simultaneously, Tesla addresses
concerns about energy costs by offering energy-efficient vehicles and renewable
energy solutions in response to rising gasoline prices and electricity expenses. Tesla
also caters to performance enthusiasts with high-performance vehicles embedded
with advanced technology and innovative features. Additionally, safety-conscious
consumers find reassurance in Tesla's advanced driver-assistance systems. These
pursuits are rooted in Tesla's unwavering commitment to sustainability and
innovation, reflecting their belief in a clean energy future, as demonstrated by their
dedication to electric vehicles and renewable energy products.

Tesla's target customers and market segments encompass a diverse spectrum,

including early adopters who enthusiastically embrace innovative products,
mainstream consumers desiring premium electric cars, and commercial and
government entities seeking efficient and sustainable transportation and energy
solutions. Tesla's influence extends beyond its direct customers, providing value to
various stakeholders. Suppliers gain access to a growing market for electric vehicle
components and renewable energy materials. Charging network partners benefit
from increased customer traffic and additional revenue through Tesla's Supercharger
stations hosted on their premises. Government entities align with Tesla's initiatives to
advance cleaner transportation and renewable energy, contributing to broader
environmental and societal goals.

Tesla captures value through the sale of electric vehicles, including a broad range
of models that cater to various customer needs and preferences. Beyond vehicle
sales, Tesla generates revenue from energy products, such as solar panels,
Powerwall, Powerpack, and solar roofs, addressing the increasing demand for
renewable energy solutions. The company also captures value through various

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services, including their Full Self-Driving (FSD) packages and premium connectivity
offerings. This diversified approach to revenue generation has contributed to Tesla's
financial success, further strengthening its position in the market.

Tesla's cost structure comprises several significant categories. One key component
is the cost associated with materials and manufacturing, covering expenses related
to vehicle production, battery manufacturing, and the fabrication of energy products.
Research and Development (R&D) expenses represent another substantial aspect of
Tesla's cost structure. The company invests significantly in R&D to foster
technological innovation, enhance existing products, and develop new features and
technologies. Moreover, sales and marketing expenses play a role in Tesla's financial
landscape, covering costs associated with marketing campaigns, sales efforts, and
brand promotion. Another pivotal area of expenditure pertains to charging network
maintenance, allocated for operating and expanding Tesla's Supercharger network,
ensuring the accessibility and convenience of charging stations. Lastly, labor costs,
including salaries, benefits, and workforce development, reflect Tesla's commitment
to maintaining a skilled and dedicated workforce.

Tesla is committed to creating value for all stakeholders, effectively distributing

value among various parties. Suppliers, as significant contributors to Tesla's
ecosystem, gain access to an expanding market for electric vehicle components and
materials used in the manufacturing of renewable energy products. Investors also
benefit as Tesla's stock value appreciates over time, offering potential returns on
their investments. For employees, Tesla provides competitive compensation
packages, nurturing a skilled and motivated workforce. Furthermore, customers gain
access to high-quality products and innovative technologies that align with their
needs and desires. Lastly, Tesla's broader impact extends to society at large. The
company's efforts toward reducing emissions and fostering a cleaner environment
contribute to a sustainable future and address pressing environmental concerns,
generating value for society as a whole.

Tesla's value configuration centers on a strategic fusion of resources and activities

that power its innovative approach. Key resources include cutting-edge Battery
Technology, vital for the efficiency of electric vehicles and energy products, and the
presence of Manufacturing Facilities in the form of Gigafactories. Tesla's commitment

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to ongoing research and development efforts is a key resource for innovation,
influencing electric vehicle and battery technology, and autonomous driving features.
The company has skillfully cultivated a robust Brand Reputation, fostering a loyal
customer base.

Activities at Tesla encompass Research and Development to consistently advance

electric vehicle technology, battery technology, and autonomous driving features,
while Manufacturing processes efficiently produce electric vehicles, batteries, and
energy products, contributing to cost-efficiency. Strategic Sales and Marketing efforts
expand Tesla's customer base and market presence, while the ongoing expansion
and maintenance of the Supercharger Network ensures customer convenience in
charging infrastructure access.

These activities are interconnected, with R&D innovations seamlessly integrated into
manufacturing processes, ultimately leading to high-quality product production.
Tesla's direct-to-consumer sales model minimizes traditional dealership involvement,
strengthening the direct customer relationship, while external collaborations,
including partnerships with suppliers and various sales and service center partners,
are pivotal. Tesla's approach effectively balances in-house activities with strategic
external collaborations to create value in the electric vehicle and clean energy
markets.

In conclusion, Tesla, Inc. emerges as a trailblazer in the automotive and clean

energy sectors, propelled by an innovative business model that redefines industry
norms. The analysis of Tesla's business model unveils its multifaceted approach to
value creation, capture, and configuration. By addressing various customer needs,
Tesla secures its position as an industry leader while adhering to its core values of
sustainability and innovation. This approach resonates with a diverse customer base,
including early adopters, mainstream consumers, and commercial and government
entities. Tesla extends its value to stakeholders, from suppliers to investors, creating
a win-win ecosystem. The strategic revenue streams, cost structures, and activities
within Tesla's business model paint a clear picture of the company's financial health
and sustainability.

Moreover, the configuration of resources and activities underpins Tesla's continuous

innovation. Advanced battery technology, manufacturing capabilities, and a strong

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brand reputation form the pillars of the company's success. Internal research and
development, manufacturing efficiency, marketing prowess, and an expanding
charging network complete the intricate web of activities that propel Tesla forward. In
this framework, internal and external collaborations coexist to drive progress.

In this holistic examination, Tesla's business model not only captures value through
the sale of electric vehicles, energy products, and services but also embraces a
well-structured configuration of resources and activities to maintain its position as a
pioneering force in the electric vehicle and clean energy industries. Tesla's ability to
balance innovation and cost-efficiency, while creating value for all stakeholders,
underscores its long-term sustainability and transformative impact on the automotive
and energy sectors.

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