A Case Study on Tesla Motors


Cost/Benefit Analysis

In concern, every determination that has to be made requires thorough rating. And one of the most convenient and straightforward methods to make this is through Cost/Benefit Analysis. In CBA, an appraisal of the entire value of all the benefits of a certain undertaking is compared to that of the value of the costs that are needed in order to recognize such undertaking ( Watkins, n.d. ) . In order for the assessor to come up with a better angle of comparing, these values must be expressed into a unvarying unit of measuring. Normally, in calculating CBA, the values of the cost and benefits are converted into their pecuniary value. Once all the costs and benefits of the undertaking have been taken into consideration, comparing may be done. If the value of the benefits outweighs that of the costs, it means that the undertaking is a worthwhile enterprise. The following point of rating would be the computation of the break-even point – the clip at which the benefits of the undertaking pay off the costs ( Hill, 2012 ) . It would be most preferred to hold a shorter payback period.

By and large, CBA helps concern people to make up one’s mind whether or non to set about a peculiar undertaking. It allows them to border the best and appropriate undertaking aims. Furthermore, CBA can be used to fix the necessary resources every bit good as develop before and after steps of the project’s success. For illustration, the move to advance more ecological operations and procedures for the company may necessitate a Cost/Benefit analysis to find the chance of its realisation. As the corporate universe is going more and more aware of the effects of Climate Change, companies are looking to implement environment-friendly patterns in their offices. The same holds true for immense fabrication companies. CBA allows the companies to measure likely additions and losingss that these actions may convey.

Tesla Motors: A Case Study in Environmental Impact

Background and Operations of Tesla Motors

Leading the coming of a more sustainable transit system and its inventions, Tesla Motors has established rather a repute in the automotive industry. Since its constitution in 2003, the company has grown to be the biggest maker of electric autos in the market. It has contributed more than 50,000 autos in roads all over the universe as of today ( Tesla Motors, n.d. ) . Its chief end is to make a transit system that is more environment-friendly and sustainable.

Electric autos are charged at place and do non necessitate refuelling of gasolene unlike the autos designed by other makers. Quite expectedly, these zero-emission autos were non easy accepted in the market as they were deemed impractical, non to advert consumers were non truly impressed with their instead tacky design. Fortunately, Tesla Motors was able to toss that equation. By let go ofing their trailblazer electric athleticss auto for the high-end market, the Tesla Roadster, they were able to capture the attending of auto partisans and alter the face of the green auto market.

After let go ofing the Roadster, Tesla pushed for more infinite in the industry by let go ofing their luxury saloon, the Tesla Model S in 2012. More and more consumers are looking to purchase electric autos because of the inventions that were done by the company. In fact, reserves for their following theoretical account releases are already stacking up. There is much expectancy for the Tesla Model X and Model 3 releases.

How Green is a Tesla Green Car?

The really intent of an electric auto is to advance energy invention ; and

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Tesla Motors’ end is to accomplish this without doing any negative impact on the environment. However, a new engineering such as the advanced green auto production can non be made to go through without being exhaustively criticized by the populace. Green autos are, by rule, more environment-friendly than the conventional fuel-based autos. The procedure, by which it is being manufactured, on the other manus, says otherwise. Furthermore, green autos do run on electricity. But, how is electricity being processed? Does it non come from coal and crude oil excessively? All things considered, is a Tesla green auto viridity after all?

The company admits that the grade of being environment-friendly of their autos – take the Model S for illustration, largely depends on where and how frequently the auto is being driven. In the US, each province has a different mix of energy beginnings that fundamentally goes into their grid. In other words, a “cleaner” beginning of electricity makes a Model S a more environment-friendly auto. By and large, it is still cleaner than the internal-combustion design of their rivals in footings of emissions-per-mile ; sing the efficiency of battery-powered autos in change overing stored energy into a utile signifier ( Oremus, 2013 ) .

Tesla Motors and the Campaign for Environmental Sustainability

Tesla Motors have established its run to advance a greener personal conveyance system through its electric vehicles ; but how does it impact the environment in the industrial context? Are its procedures and operations considered as environment-friendly?

The company is really much aware of the fact that they are indirectly let go ofing C emanations through power workss – sing that electricity is the chief power beginning of the vehicles. This is the ground why Tesla moves to advance the absolute remotion of indirect C emanations by utilizing Supercharger Stations that merely uses grid electric power from solar panels ( Walsh, 2014 ) . Furthermore, Tesla is teaming up with SolarCity to supply electric auto proprietors an option to bear down their autos utilizing solar panels in their several places. This is like hitting two birds with one rock. By extinguishing the demand for coal-based electricity beginning, they are indirectly cut downing C emanations in the ambiance ; and they are advancing the usage of renewable energy beginning at the same clip.

Tesla is fundamentally work outing the world’s dependance on gas. Through their radical inventions in electric vehicle engineering, they have addressed an issue that has been thought as an improbableness for many old ages. By doing more convenient accommodations in their electric autos, and at the same clip turn outing that electric autos are so effectual, Tesla has convinced more consumers to sponsor their merchandise. The company is winning more and more conflicts as they advance into bigger ventures.

In order to provide to their turning consumer demands, Tesla is constructing their very foremost Gigafactory. Panasonic will be a immense investor in this undertaking, along with Tesla’s other major spouses. The best thing about this gigafactory is the company’s program to run it chiefly on air current and solar energy. Nevada is the perfect site for the mill because it is where the biggest solar power works in the universe is located.

Tesla does non merely function as a leader in electric auto engineering, it is besides going a theoretical account for other companies to see more environment-friendly procedures. Coal excavation and processing has created many environment-related issues and are still doing jobs in many topographic points around the universe. If Tesla becomes successful in extinguishing the demand for non-renewable beginnings of energy in order to bring forth electricity, it can alter the face of the car industry everlastingly. Not merely will it dramatically cut down the C emanations that are released to the ambiance, it will besides extinguish the issues that are brought about by the processing of electricity that is coming from natural resources.

Tesla Motors and the Competitive Industry

Of class, Tesla Motors is non the lone company that has entered the green auto market. Even though the industry for green autos is non that large compared to the conventional car market, it can be said that competition is non excessively slack. In fact, Toyota, Ford, Nissan, and Honda are considered as the biggest rivals for Tesla. Audi, Volkswagen, and BMW are looking to fall in the green auto industry shortly. And these are reasonably immense companies. Can Tesla maintain its topographic point in the industry without being squeezed out by elephantine auto makers? What is its competitory advantage?

Unlike the remainder of the car makers, Tesla is 100 % in the green auto industry. Therefore, their focal point is merely within that market. Research and development is entirely dedicated for this intent, leting the company to make better inventions. Besides, Tesla has about 5-year caput start over the other companies. While other companies are still constructing their green auto designs, Tesla is already smoothing its ain.

The hereafter of the automotive industry is tilting towards the use of renewable beginnings of energy. This fundamentally means that other companies who are on the other side of the industry are at a immense disadvantage. Oil is about to run out ; but solar power is limitless. Sooner or subsequently, they will hold to switch to a more sustainable beginning of energy.

Tesla Motors and the Future of Green Car Technology

At the minute, Tesla’s precedence is to maximise its production in order to run into the demands for the Model S and Model X in the market. They are holding problems in run intoing client demands with their very limited production. But the populace can rest assured that Tesla will non halt making better inventions for their merchandises. Once the gigafactory has been installed, Tesla’s following focal point will be on the development and betterment of machine-controlled driving engineering. As a affair of fact, the company’s CEO, Mr. Elon Musk has announced the release of their partially self-driving vehicle by 2017 ( Boyadjis, Rassweiler, & A ; Brinley, n.d. ) .

As the engineering for zero-emission autos advancement, the issues sing the car companies’ impact on the environment is being addressed bit by bit. Someday, there will come a clip when vehicles will entirely depend on solar power – among other renewable energy beginnings. It may non wholly work out Global heating, but it will assist the universe get at that place one measure at a clip.


Boyadjis, M. , Rassweiler, A. , & A ; Brinley, S. ( n.d. ) . Object moved. Retrieved from hypertext transfer protocol: //www.ihs.com/articles/features/tesla-motors.html

Hill, R. ( 2012, September ) . Attention Required! | CloudFlare. Retrieved from hypertext transfer protocol: //www.mindtools.com/pages/article/newTED_08.htm

Oremus, W. ( 2013, September 9 ) . How green is a Tesla? Electric cars’ environmental impact depends on where you live. Retrieved from hypertext transfer protocol: //www.slate.com/articles/technology/technology/2013/09/how_green_is_a_tesla_electric_cars_environmental_impact_depends_on_where.html

Tesla Motors. ( n.d. ) . About Tesla | Tesla Motors. Retrieved from hypertext transfer protocol: //www.teslamotors.com/about

Walsh, T. ( 2014, November 1 ) . Investing in Socially Responsible Companies: Tesla Motors Inc. Retrieved from hypertext transfer protocol: //www.fool.com/investing/general/2014/11/01/investing-in-socially-responsible-companies-tesl-2.aspx

Watkins, T. ( n.d. ) . An Introduction to Cost Benefit Analysis. Retrieved from hypertext transfer protocol: //www.sjsu.edu/faculty/watkins/cba.htm

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