The biggest obstacle for any new organization is always finding its place. However, in some industries, especially the consumer automotive industry, this task seems almost impossible. So, when the company entered the already saturated market in 2012 with its flagship Model S car, the odds against them were very low. However, the events that followed truly left an indelible mark on history!
Tesla’s success has definitively proven that innovation, dedication, and a consumer-centric approach can produce outstanding results in any field. The company’s business strategy has always focused on providing the best cars consumer’s desire. It’s no surprise that when the “Model S” was launched in 2013, it received nearly perfect ratings from Consumer Reports. Consumer Reports even continued to praise this car as “the best car they’ve ever tested!”
Over time, Tesla has become one of the fastest-growing companies globally, with a total market value reaching $909.6 billion by March 2022.
Tesla Motors history
Unlike car manufacturers with a long history, Tesla Motors is a relatively young company. Two Silicon Valley engineers – Martin Eberhard and Mark Tarpenning – founded the company in 2003 based on a simple idea. They believed that electric cars could surpass gas-powered cars in every aspect.
It all started in 1990 when Eberhard met Tarpenning while working at Wyse Technology. Thanks to their strong passion for technology and entrepreneurship, the two quickly became friends.
Things changed in 2001 when Eberhard and Tarpenning met with Tesla’s current CEO, Elon Musk. Musk had successfully sold PayPal to eBay at the time, earning $165 million, and had also founded SpaceX around the same period. It was at this time that he founded SpaceX.
The company was registered in 2003 and began raising funds in 2004. Elon Musk led the initial funding phase and soon became chairman of the board of the newly formed company.
Tesla CEO Elon Musk
Although Musk played a key role in developing Tesla’s business strategy, he was not part of the company during its early years. He is a Canadian-American specialist with an engineering degree. He also holds a dual bachelor’s degree in physics and economics from the University of Pennsylvania.
He is a prime example of a serial entrepreneur. He launched several highly successful startups and sold them at valuations exceeding a million dollars.
Musk became CEO and product architect of an automotive company in 2008 and fundamentally changed the history of Tesla Motors.
After Elon Musk took over as Tesla’s CEO, the company faced various controversies. Although Tesla’s controversies attracted widespread public attention, they never hindered the company’s growth. Problems with the Autopilot system remain one of Tesla’s biggest controversies and continue to be a major source of concern.
Tesla’s Business Strategy
Tesla’s success is often attributed to its expertise in producing electric vehicles, electric powertrains, and other components. The company previously focused on a single product, which significantly contributed to Tesla’s success. Although it currently offers several models, the range remains quite limited.
As of March 2022, the models available in the market include the Model S, the more affordable Model 3, the SUV-style Model X, and the crossover Model Y.
As more major companies enter the electric vehicle industry, the automaker is focusing on expanding its customer base. Despite fierce competition, Tesla’s overall market value continues to grow.
Tesla’s continued success in 2022 is linked to its expansion into other countries, including China, and plans to operate globally in the coming years. Another crucial aspect of Tesla’s business strategy is establishing strategic partnerships with companies like Panasonic. By employing this strategy, the company has managed to keep the cost of lithium-ion batteries low.
What’s the next step for Tesla Motors?
Tesla’s success has been remarkable, but the electric vehicle market is growing rapidly, with companies like Mercedes Benz and BMW already entering the field. According to some analysts, one out of every three cars sold by 2030 will be an electric vehicle.
The company possesses the determination and resilience to succeed even in the face of intensifying competition. Many experts predicted that Tesla’s business strategy would not reach its goals by 2020, but the company not only achieved its targets but exceeded them by approximately 2 percent.
However, like everything else in the world, even Tesla’s success is not guaranteed. Nevertheless, the company’s journey from a small startup in the early 2000s to an industry leader in 2022 has been truly extraordinary.
Prepared by Zukhrakhon Mansurova
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