Tesla Inc.

Tesla Inc.

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IE Business SchoolOperations Management - Prof. Felipe QuintanaSection 3Francisco Maria Cotrim Figueiredo de Calheiros e MenezesTesla IncTesla Inc was founded back in 2003 by Elon Musk. It exclusively produces electric cars and residential photovoltaic panels. Nowadays it has 4 models, the Roadster (new version coming out in 2020), Model S, Model X and Model 3. Tesla's mission is to accelerate the world's transition to sustainable energy through increasingly affordable electric vehicles and energy products.The name is an homage to Nikola Tesla, the Serbian inventor who created the induction motor and alternating-current (AC) power transmission. It's said that without Tesla's vision and brilliance, this car brand wouldn't exist.I chose this company because I'm a huge car enthusiast and obviously Tesla is the car brand of the future for me and I believe it will play a major role in the future of the world.

CRM (Customer Relationship Management)

CRM (Customer Relationship Management)

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The Customer Relationship Management is usually important to every company. For Tesla it seems to be one of the critical aspects of the company. However, Musk's policy has paid off as Tesla's customers have been voted the most loyal ones.The company does this in two different ways. On one hand, it focus on giving the best assistance to the drivers (in case of accident Tesla will immediately provide you any type of help). On the other hand, Tesla often organises events to explain how to use the new technology in their cars.

Customer Loyalty

Customer Loyalty

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Tesla's high level of customer loyalty is shown by the fact that they have a higher loyalty rating than Mercedes-Benz, the oldest car manufacturer in the world. Musk knows perfectly that is where the brand can make the difference in terms of quality to the customer and is using it for attracting more and more customers.It has a special customer support system. If you have any kind of problem, Tesla will send you an assistance team to solve it if possible as you can see in the picture. With any other car brand you would have to take your car to the mechanical workshop.

Customer Events

Customer Events

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Tesla usually hosts showcases to show the clients the new technologies and updates of the car and to explain them how to use it. It is probably one of the only car brands in the world that does this. Nevertheless, it offers the possibility of updating the car's operating system while in a regular car brand you need to buy the new model to do so. This shows that Tesla knows that customers are making a long term investment when they buy one of their models. Once again, this shows us how seriously Tesla takes its Customer Relationship Management.

Factories

Factories

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Tesla's headquarters are located in Palo Alto, California.So far, Tesla Motors has two factories, one in Fremont, California where they manufacture the cars and the Gigafactory which is located in Sparks, Nevada where the batteries for the cars are produced. In the future, Elon Musk's plan consists of opening a new Gigafactory in Europe.

Tesla Factory

Tesla Factory

Gigafactory

Gigafactory

Gigafactory 2

Gigafactory 2

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The Gigafactory 2 was finished in early 2017 and is owned by the state of New York and leased to Tesla's subsidiary, Solar City.

Gigafactory Europe

Gigafactory Europe

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Elon Musk is planning to build a Gigafactory in Europe. This is part of his plan for the extension of Tesla's production of vehicles. Some countries have already shown interest on hosting the new lithium batteries factory as it represents creation of new works and also foreign investment to the countries in question. A lot of countries have expressed interest on holding the location of the new factory. Portugal seems to me the best option for the new factory because it has Europe's biggest lithium reserves and is also a country with a lot of solar panels integration.

History

The Future Tesla Roadster

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In November 2017, Elon Musk presented us a bit of Tesla's future with the new version of their first model, the Roadster. The new Roadster will be launched in 2020 and is set to be the world's fastest car. In the short video attached, you can see the impressive acceleration the car can reach in a matter of seconds. The base price is 200 thousand dollars.0-100 km/h: 1.9 secondsTop Speed: over 400 km/hRange: Almost 1000 km

The Future Tesla Semi

The Future Tesla Semi

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Elon Musk also announced a future Tesla Truck, the Tesla Semi. He claims that this is the truck that requires the lowest energy cost per mile. It will have four engines and has also some amazing features for a truck.0-100 km/h: 20 secondsFuel Savings: Over 200 thousand dollarsEnergy Consumption: Less than 2 kWh

Assembly Line

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This video is small example of the robots that Tesla has available in its production system. Tesla has the most automated assembly line in the world. The automated system is an important investment in order to have one of the most important Lean Manufacturing characteristics, zero defect and zero waste and with the automated assembly line, Tesla tries to achieve it.

The 5S System

The 5S System

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Tesla implemented the 5S system in their Assembly Line. This is why the line is automated in order to respect the 5 points of this picture.

Future Challenges

Future Challenges

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After this analysis, we can conclude that Tesla is trying to build a sustainable future for the world and it is one of the most advanced companies in the world.However, the competition is fierce and as we saw competitors are now focusing more and more on electric cars.To conclude, I believe that Musk's knowledge, leadership and the fact that Tesla is already well established (specially in the US) will help the company on keeping its competitive advantage in the near future. On the long term, we just need to wait to see the big car manufacturers response.

Innovation

Innovation

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It is known to everyone that Tesla is an innovative car brand who's trying to differentiate from competitors. All the car models provided have the futuristic 17 inches touchscreen (one the Tesla's brand image), the autopilot feature and every car can be charged with the supercharger. The Customer Experience increases a lot with these features.

Supercharger

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This is one of Tesla's competitive advantage compared to other electric car brands. With the supercharger, you can charge your Tesla in half of the time. This also related to Tesla's CRM.

Autopilot

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Tesla shocked the automotive world when it was the first car brand launching a complete autopilot mode. As we can see in the video, the autopilot is able to do everything without human help and is also able to predict crashes. There is some controversy because a person died in a Tesla with the autopilot mode on. This could seriously damage Tesla's brand image but it was able to prove that the car issued multiple warnings before the crash.

The Touchscreen

The Touchscreen

Competitors

Competitors

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The big players of the car industry have already started producing electric cars as well.Some Examples:BMW has the i3 and the i8Nissan has the LeafYesterday, Porsche presented the Mission E at the Geneva Motor Show

Advertisement

Advertisement

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Tesla has no advertisement budget but it doesn't mean that they don't advertise their brand. This article is a great example, when Space X launched the Falcon 9 Rocket some weeks ago it had with it what is now the first car in space, the Tesla Roadster. The Showcases we mentioned in the CRM part is also a way to advertise the brand.

SRM (Supplier Relationship Management)

SRM (Supplier Relationship Management)

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Supplier Relationship Management is extremely important for any company. In Tesla's case it is extremely important that the suppliers do not miss the deadlines because the cars need to be delivered in time (this is critical for the new Model 3). Tesla is actually blaming their suppliers for the delays in the Model 3 delivery as you can see in the article.

Model S Suppliers

Model S Suppliers

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This is a graphic that shows how important is SRM for the Model S.

Vertical Integration

Vertical Integration

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There is link added even if it looks like there is nothing.