(TIỂU LUẬN) management assignment subject tesla inc ’s planning process tesla inc , formly (2003 2017) tesla motors

Ministry of Education and Training National Economics University -*** - Management Assignment Subject: Tesla Inc.’s Planning Process Group – BFI 62 Hanoi, 2021 TABLE OF CONTENTS INTRODUCTION OF TESLA INC MAIN CONTENTS Tesla’s Vision and Mission Statement Tesla’s Objectives and Strategies Tesla’s Planning Process 4 Introduction of Gigafactory Define objective Define where you stand vis-à-vis objective Develop premises regarding future condition Analyze alternatives and make a plan Implement the plan and evaluate results INTRODUCTION OF TESLA INC Tesla Inc., formly (2003-2017) Tesla Motors, is an American electric vehicle and clean energy company based in Palo Alto, California It was founded in 2003 by American entrepreneurs Martin Eberhand and Marc Tarpening amd was named after the inventor Nikola Tesla Funding for the company was obtained from a variety of sources, most notably Elon Musk, who served as chairman of the company Tesla’s current products include electric cars, battery energy storage, solar panels and solar roof tiles, as well as other related products and services Tesla is ranked as the world’s best-selling plug-in and battery electric car manufacturer, also one of the largest global supplier of battery energy storage systems MAIN CONTENTS Vision and Mission Statement Tesla’s vision is to “create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles”, while its mission is to “accelerate the world’s transition to sustainable transport by bringing compelling mass-market electric cars to market as soon as possible.” Objectives and Strategies Tesla’s goal is to become the most compelling car company of the 21st century by driving the world’s transition to electric vehicles Tesla was not the first name to produce electric cars, but all the electric cars ahead of Tesla were just “half-baked” products, run by both gasoline and electric motors A typical example of these cars is the Toyota Prius, which is not only poorly designed but also slow With its goals and strategic actions, Tesla has gradually confirmed its position in the global electric vehicle manufacturing industry Musk’s vision has changed the world of cars: after the success of Tesla, manufacturers have also prepared to produce hybrid and fully electric cars For the first time in the history, the phrase “electric motor” became the goal of the fiercely competitive automotive industry With the aim to this attractive, but also competitive market, Musk and his coworkers built a three-stage strategy:  Create a low volume car, which could necessarily be expensive  Use that money to develop a medium volume car at a lower price  Built a large-scale organization capable of producing affordable, high volume cars for the market The Planning Process: Gigafactory  Introduction Tesla broke ground on the Gigafactory in June 2014 outside Sparks, Nevada The name Gigafactory comes from the word 'Giga,' the unit of measurement representing “billions.” The Gigafactory is being built in phases so that Tesla can begin manufacturing immediately inside the finished sections and continue to expand thereafter Tesla expects the Gigafactory to be the biggest building in the world – and entirely powered by renewable energy sources Designed to be a net zero energy factory upon completion, the facility will be primarily powered by solar, and installation is already underway a Define objective Tesla’s mission is to accelerate the world’s transition to sustainable energy through increasingly affordable electric vehicles and energy products To ramp production to 500,000 cars per year, Tesla alone will require today’s entire worldwide supply of lithium-ion batteries The Tesla Gigafactory was born out of necessity and will supply enough batteries to support Tesla’s projected vehicle demand Today, the Gigafactory produce Model electric motors and battery packs, in addition to Tesla’s energy storage products, Powerwall and Powerpack In 2013, Tesla revealed early plans for its Gigafactory concept, an ambitious effort to bring economic efficiency to the battery industry Lithium-ion batteries are still too expensive for a mass-market vehicle, and the company needs to build a new factory to bring EV to the customers With the goal of reducing the cost of lithium-ion battery packs by 30%, Gigafactory was born Perhaps the biggest hurdle Tesla faces in its goal to build an affordable electric car is the cost of batteries that eliminate the need for gasoline To deal with the problem, Elon Musk's upstart automaker is planning to build a "Gigafactory" — a huge factory that by 2020 would exceed 2013 global production of battery packs b Determine where you stand vis-a-vis objective July 31, 2014 – Panasonic Corporation and Tesla Motors, Inc have signed an agreement that lays out their cooperation on the construction of a large-scale battery manufacturing plant in the United States, known as the Gigafactory With government’s support, these companies are also able to take risks in developing new technology However, in this period, there has not been a breakthrough in battery and accumulator technology Therefore, electric vehicles mainly still use lead-acid batteries (Acid Plomb) leading to unsatisfactory performance, poor energy storage, very short running distances compared to traditional vehicles, and many problems with battery degradation Besides, the expansion of the auto industry in the electric car segment will increase the number of competitors in the industry, which is also a big challenge for electric car manufacturers Once the Gigafactories officially go into operation in 2020, Tesla will need up to 6,500 employees to operate Currently, the number of employees is only about 350 people  Tesla needs to address this c Develop premises regarding future condition If it succeeds: • Under Tesla's first plan, the Gigafactory expected to produce enough batteries for 500,000 EVs per year by 2018 The company eventually moved that goal forward in two years If Tesla offered a battery pack to cost less than $ 100 / KWH of energy storage, EVs would be cheaper (even without subsidies) than gasolinepowered cars • Once officially completed, this will be the largest building in the world, and if everything goes according to the original plan, each year Gigafactory will produce a battery equivalent to 150 GWh, enough to serve 1.5 million Model 3s Currently, Tesla hopes to be able to produce 35 GWh of batteries per year by 2018 which is enough to power 500,000 Model 3s • Gigafactory is really huge But for Tesla, this is more than just a place to make electric vehicle batteries Forgetting the Model 3s, the success or failure of the Gigafactory is the key to Tesla's future as well as Elon Musk's efforts to help the world reduce carbon emissions • Musk shared “We consider Gigafactory as a real product It is a machine that produces other machines That's why Tesla invests more effort in it than in the products it will create." • Gigafactory will become the world's largest lithium-ion battery factory If it fails:  While the Gigafactory strategy illustrates Tesla’s ambition to expand production and dominate the market, it presents risks: more debt, lack of experience in producing lithium-ion batteries, potential pollution, and possible miscalculation of what cars the public wants Those risks make the success of the Gigafactories strategy uncertain  Though Tesla’s financial performance is strong and exciting, the most important risk to its Gigafactories strategy is debt  Given the cost of the Gigafactories, Tesla’s financial results may fall into a trap The company’s debt has increased from $3 billion in the first quarter of 2015 to $14 billion in the second quarter of 2020, resulting in concerns about the company’s financial health from not only investors but also creditors With 14 Gigafactories still to be built or under construction, analysts are concerned about Tesla’s financial balance According to a report from Electrek, a news website covering electric transportation, Tesla spent almost $100 million on land alone for its Texas Gigafactory Taking on debt can help a company grow But if Tesla overloads itself with debt because of its aggressive expansion on Gigafactories, it could ruin the company  Tesla cannot ignore the issue of pollution To build Gigafactories worldwide, it has to buy land in different countries that were forest or parks before Especially when Tesla produces lithium-ion batteries at Gigafactory sites, environmental concerns rise not only for Tesla but also for local residents  Not only does it not solve environmental problems, but it also makes Elon Musk's dream and billion USD gone with the wind d Analyze alternatives and make a plan o 2014  Site selection: Stockton, California, Arizona, Nevada and New Mexico  Initial Project Design:  Partner Discussions  Zoning& Design/ Build o 2015: Facility construction o 2016  Equipment Installation  Production Launch and Ramp  The grand opening event was held on July 29, 2016 e Implement the plan and evaluate results: Tesla’s Gigafactory 1, located east of Reno in Storey County, was originally projected to have 6,500 employees by 2018 According to the new report, the head count was 7,059 as of June 30 Ninety-three percent of these workers are from Nevada, and 4,247 are “qualified employees” who have been employed for at least three consecutive months and work for an average minimum of 30 hours per week Average wages for the employees are $25.78 per hour, just a little short of the projected $27.35 - the only one of the targets listed in the report that Tesla has not yet reached In mid-2018, battery production at Gigafactory reached an annualized rate of roughly 20 GWh, making it the highest-volume battery plant in the world Tesla currently produces more batteries in terms of kWh than all other carmakers combined With the Gigafactory ramping up production, Tesla’s cost of battery cells will significantly decline through economies of scale, innovative manufacturing, reduction of waste, and the simple optimization of locating most manufacturing processes under one roof By reducing the cost of batteries, Tesla can make products available to more and more people, allowing us to make the biggest possible impact on transitioning the world to sustainable energy As of May 2019, Gigafactory has achieved a theoretical capacity of 35 gigawatt-hours per year but utilization levels have resulted in a 24 gigawatthour output, according to Panasonic President Kazuhiro Tsuga Construction of the massive Gigafactory created 17,000 direct construction jobs and 7,900 indirect jobs in Washoe and Storey Counties between 2015 and 2018 - again surpassing projections The report estimates the total economic impact of construction at $3.23 billion, $843 million higher than projected 10 11 ... evaluate results INTRODUCTION OF TESLA INC Tesla Inc. , formly (2003- 2017) Tesla Motors, is an American electric vehicle and clean energy company based in Palo Alto, California It was founded in...TABLE OF CONTENTS INTRODUCTION OF TESLA INC MAIN CONTENTS Tesla? ??s Vision and Mission Statement Tesla? ??s Objectives and Strategies Tesla? ??s Planning Process 4 Introduction of Gigafactory Define... Nikola Tesla Funding for the company was obtained from a variety of sources, most notably Elon Musk, who served as chairman of the company Tesla? ??s current products include electric cars, battery