The Milestone 1 Paper Will Identify And Describe Your Chosen

The Milestone 1 paper will identify and describe your chosen company, what business it is in, and set out the problem that needs to be solved

The Milestone 1 paper will identify and describe your chosen company, what business it is in, and set out the problem that needs to be solved. This is a situational analysis. Paper length: 4 pages not including title page and references. All papers are to be in APA format, with a title page, running head, and references. APA style requires 12-point Times New Roman font, double-spacing throughout.

Paper For Above instruction

The selected company for this analysis is Tesla, Inc., a global leader in electric vehicles (EVs), clean energy products, and sustainable transportation solutions. Tesla's core business revolves around designing, manufacturing, and selling electric vehicles, energy storage systems, solar panels, and related products. Founded in 2003 by Elon Musk and his team, Tesla has revolutionized the automotive industry by popularizing electric mobility and pushing the boundaries of battery technology and sustainable energy solutions.

Tesla’s mission is to accelerate the world’s transition to sustainable energy, which guides its diverse product offerings and strategic initiatives. The company's primary revenue streams include vehicle sales, regulatory credits, energy generation and storage, and software-related services like Autopilot and full self-driving capabilities. Tesla's innovative approach and continuous technological advancements have positioned it as a highly influential and rapidly growing enterprise in the transportation and energy sectors.

Despite its successes, Tesla faces several challenges that form the core of this situational analysis. A prominent issue is the increasing competition in the electric vehicle market. Traditional automakers such as Ford, General Motors, and Volkswagen are investing heavily in EV development, eroding Tesla’s earlier market dominance. Furthermore, supply chain disruptions, notably involving battery materials like lithium and cobalt, threaten Tesla’s production capabilities and cost structure.

Another critical problem is regulatory and geopolitical risks. Tesla operates in multiple countries with varying regulations, tariffs, and trade policies. Changes in government incentives for electric vehicles or tariffs on imported components can significantly impact Tesla’s profitability. Additionally, concerns about safety and vehicle recalls related to Autopilot’s autonomous features have attracted regulatory scrutiny and could affect consumer trust.

Operational and production challenges also persist. Tesla’s ambitious goal to increase manufacturing capacity through gigafactories worldwide necessitates complex logistics and substantial capital investments. Delays or cost overruns in these projects could hinder Tesla’s expansion plans. Moreover, maintaining quality control across rapidly scaling production lines remains a concern, especially with new models like the Cybertruck and Model Y.

This situational analysis aims to explore these issues comprehensively, providing a foundation for strategic recommendations that can help Tesla maintain its competitive edge while addressing operational and regulatory challenges.

References

  • Vynck, G. (2020). Tesla’s Rise and the Challenges Ahead. The Wall Street Journal. https://www.wsj.com/articles/teslas-rise-and-the-challenges-ahead-11607160803
  • Higgins, T. (2021). How Tesla is Disrupting the Auto Industry. Forbes. https://www.forbes.com/sites/tinahiggins/2021/05/12/how-tesla-is-disrupting-the-auto-industry/
  • Isaacson, W. (2021). Elon Musk. Simon & Schuster.
  • Blair, E. (2020). Tesla’s Business Model and Strategy. Harvard Business Review. https://hbr.org/2020/05/teslas-business-model-and-strategy
  • Han, J. (2022). Supply Chain Risks in the EV Sector. Journal of Supply Chain Management, 58(1), 45-57.
  • Green, M. (2021). Regulatory Challenges Facing Electric Vehicle Manufacturers. Energy Policy, 155, 112347.
  • OECD. (2022). The Future of Electric Vehicles and Energy Storage. OECD Publishing. https://doi.org/10.1787/9789264983778-en
  • Smith, R. (2021). Global Expansion Strategies of Tesla. Journal of International Business Studies, 52(4), 523-540.
  • Nakamura, T., & Suzuki, K. (2020). Battery Material Supply Chain for Electric Vehicles. Journal of Cleaner Production, 276, 124243.
  • U.S. Department of Energy. (2022). Electric Vehicle Supply Chain and Market Trends. DOE Reports. https://www.energy.gov/eere/vehicles/articles/electric-vehicle-supply-chain-and-market-trends

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