Tesla Motors Presentation

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Tesla Motors is expanding its electric vehicle business in North America by opening new stores in Seattle, New York, Munich, Toronto, Vancouver and Montreal. The document discusses Tesla's marketing plan to promote electric vehicles and the "green movement" through strategic placement of stores and well-timed press releases, while acknowledging competition from other eco-friendly electric vehicles. It also mentions Tesla is currently the only highway-capable electric vehicle available in North America and will introduce a 7-seat sedan in 2011.

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The automotive industry is going through an innovation shift where manufacturers are trying to achieve new heights of technological and design innovations every day to lure customers. Tesla Motors, Inc. is an American automotive company which is well renowned in the market for manufacturing luxury electric vehicles. Tesla is swiftly pioneering in the automotive industry leveraging information and technology systems (IT/IS) with a combination of highly intelligent hardware and software system (Newcomb, 2015, para. 3). The technology and IS integrated in the Tesla cars permit Over-the-Air (OTA) software updates and Autopilot features. OTA was first launched in Tesla cars in 2012 with Model S (Newcomb, 2015, para. 3). Since the adoption of “OTA software update” technology in tesla cars, it has created a competitive advantage for the company over other well established automotive manufacturers including BMW, GMC, Ford and others who are still trying to develop and integrate the OTA technology in their cars (Zhang, 2016, para. 2). This paper analyzes implementation of hands-free and feet-free travel experience also called Autopilot feature in Tesla cars powered by Over-the-Air IS technology. First, this paper describes a brief background of Tesla Motors Inc., current information system trends and their requirements in automotive industry, and Tesla’s competitors. Second, the paper analyzes OTA technology used to push firmware updates, support autopilot, and its influence on automotive industry. Third, the paper presents tesla’s competitive environment in automotive industry, its trading partners, and how tesla is leveraging OTA for sustainable competitive advantage. Next, the paper analyzes economic feasibility to implement autopilot supported by OTA in all models, compares best case, worst case, most likely case and its value towards the success of the company. Lastly, the paper explains organizational implementation of self-driving cars powered by OTA at a large scale.

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This deck highlights the extraordinary, ever-evolving success story of Tesla Motors and distills it as a story of innovation and integration, as a way for us all to look at our professions and ask what we can learn from Tesla’s approach. I think Tesla’s story is an ideal one to examine for anyone who is in business today. Their highly integrated and innovative approach is essentially unique among auto manufacturers, who are shackled by a tradition-bound industry. So I’d like each of you to think of your business or practice’s approach to projects and look with us at a model from outside your industry so we can start to challenge ourselves and start to change our approach.

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Tesla Motors In 2015, Tesla Motors was a $3.2 billion company on track to set history. It had created two cars that most people agreed were remarkable. Consumer reports had rated Tesla’s Model S the best car it had ever reviewed. Though it was not yet posting profits, sales were growing rapidly and analysts were hopeful that profits would soon follow. It had repaid its government loans ahead of the major auto conglomerates. Most importantly, it looked like it might survive. Perhaps even thrive. This was astonishing as there had been no other successful auto manufacturing start-up in the United States since the 1920s. The road leading up to Tesla’s position in 2015 had not always been smooth, and there were many doubts that still lingered. Tesla had benefited from the enthusiasm of the “eco-wealthy”—a rather narrow portion of the market. How would Tesla fare when it was in direct competition with General Motors, Ford, and Nissan for the mass market? Would it be able to turn a sustainable profit on its auto-making operations? Furthermore, some questioned whether Tesla’s goals to sell to the mass market even made sense. In the niche market, it had a privileged position with customers that were relatively price-insensitive and were seeking a stylish, high-performance car that made an environmental statement. To compete for the mass market, the car would have to provide good value for the money (involving trade-offs that might conflict with Chairman Elon Musk’s ideals), and the obstacles to charging would have to be overcome.

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Different dimensions have been used to distinguish types of innovation. Some of the most widely used dimensions include product versus process innovation, radical versus incremental innovation, competence-enhancing versus competence destroying innovation, and architectural versus component innovation. A graph of technology performance over cumulative effort invested often exhibits an s-shape curve. This suggests that performance improvement in a new technology is initially difficult and costly, but, as the fundamental principles of the technology are worked out, it then begins to accelerate as the technology becomes better understood, and finally diminishing returns set in as the technology approaches its inherent limits.

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