By Xin Xiong
August 10th 2014
Founded in 2003 and based in Palo Alto, Tesla Motors is one of the leading high-tech automobile companies, which produce the fully electrical vehicles and powertrain elements. The company runs operations in 31 countries and hires over 6,000 staff around the world. Tesla Motors has an increasingly high growth rate, recording its revenues of 2,013,496 in 2013 (See Figure 1). Sales of its current model, Tesla Model S, reach about 22,300 at 2013, ranking the fourth among world electric vehicle (See Figure 2).
The company currently focuses sales on its second-generation automobile, the Model S, and is developing the Model X and Gen III crossover based on this …show more content…
This constant recovery of the global automobile market creates a satisfactory market environment for Tesla Motors to strengthen its profitability and realize market expansion (Leggett, 2014).
Government incentives for electric automobiles
Many countries establish governmental incentives to stimulate the electric vehicle industry. The United States federal government approved the Energy Improvement and Extension Act of 2008 and the American Cleaning Security Act of 2009, providing tax credits for qualified electric automobiles. The fed further announced a bill to transfer the tax credit into rebate worth up to 7,500 dollars. In Europe, British government set 250 million pounds subsidy for purchase incentives in 2009, and German legislation passed a law that private owners could offset the list price up to 10,000 euros in 2010. In Asia, Chinese government launched a series programs to provide the buyers could receive a maximum 60,000 RMB purchase incentives. The support to the electric vehicle industry will benefit Tesla Motors in cutting cost and enlarging sales (Department of Energy, 2014).
Treats (these correspond to the bullet points above)
Competition from established automobile manufacturers and new entrants
As the tendency of developing the alternative fuel vehicles, some