Whole Business

Tesla, Inc. is a global technology and automotive company headquartered in Austin, Texas, USA. Founded in 2003, it operates in over 40 countries. Tesla designs and produces electric vehicles, battery energy storage systems, solar panels, and related products. Its key production facilities include Gigafactories in the U.S., China, and Germany. Tesla is renowned for its innovation, with a mission to accelerate the world’s transition to sustainable energy. As of 2024, it remains a leader in the EV market and continues to expand its clean energy offerings globally.

Coordination of Key Business Functions

Tesla ensures coordination across its business functions through integrated data systems and direct leadership involvement. The interdependence among departments is pivotal in achieving the company's goals:

Marketing and Operations: Collaborate to align production with customer demand, utilizing limited advertising and focusing on product launches, social media presence, and Elon Musk’s public influence.

Finance and Operations: Work together to allocate budgets effectively for factory expansion, R&D, and battery technology innovation.

Human Resources and Operations: Partner to recruit skilled engineers and technicians for manufacturing roles in Gigafactories and ensure workforce readiness for rapid production scaling.

These departments share real-time data through Tesla’s internal enterprise systems to make informed decisions, ensuring that each function supports the others in achieving both financial and non-financial objectives.

SMART Goals

Financial Goals:

Increase Annual Vehicle Deliveries: Achieve over 2 million vehicle deliveries by the end of 2024, up from approximately 1.8 million in 2023, representing an 11% year-over-year increase.

Expand Profit Margins: Improve gross profit margins from 17.86% in 2023 to 20% by the end of 2025 through enhanced production efficiency and reduced manufacturing costs.

Non-Financial Goals:

Accelerate Sustainable Energy Transition: Increase global installations of Tesla's solar panels and Powerwall systems by 25% by the end of 2025, contributing to a reduction in carbon emissions.

Lead in Autonomous Driving Innovation: Achieve full self-driving (FSD) capability with regulatory approval in at least two major markets by the end of 2025.

Enhance ESG Performance: Reduce supply chain-related carbon emissions by 15% by the end of 2025 and improve supply chain sustainability through increased use of recycled materials.

Operations

Types of Goods: Tesla sells electric cars (Model 3, Model Y, Model S, and Model X), energy products like solar panels and Powerwall battery storage systems, and services including vehicle software updates, self-driving technology, and energy management solutions.

Production of Tesla Model 3: The production involves a highly automated and technologically advanced process. Inputs include aluminium, steel, lithium-ion battery cells, electric motors, and software components. The transformation process involves robotic and human assembly at Gigafactories, where the body is formed, battery packs are integrated, and software is installed and tested. The output is a fully functional electric vehicle with advanced features, high performance, and sustainable operation.

Management Strategies: Tesla employs automated inspection systems to detect manufacturing defects and ensure consistency. It also applies continuous improvement practices like Six Sigma to reduce errors and increase production efficiency. Additionally, Tesla integrates Total Quality Management (TQM) principles, emphasizing customer satisfaction, employee involvement, and continuous improvement across all organizational processes.

Human Resources

CEO: Elon Musk

Employees: Approximately 140,000 worldwide

Skills Required for Software Engineer:

Proficiency in Programming Languages: Expertise in languages such as Python and C++.

Analytical Problem-Solving Skills: Ability to develop advanced vehicle features like self-driving and safety systems.

Employee Retention Program: Tesla utilizes an Employee Stock Ownership Plan (ESOP), offering discounted shares or stock options to employees. This strategy boosts motivation and loyalty by providing a financial stake in the company's success. In Germany, Tesla is mandated to offer ESOPs to all employees, while in the USA, these benefits are primarily available to top and mid-level managers .

Marketing

Target Market: Tesla primarily targets environmentally conscious consumers, tech-savvy individuals, and middle to high-income earners in the premium/luxury electric vehicle market. The company employs a market segmentation approach, focusing on specific consumer groups that value sustainability, innovation, and performance.

Marketing Mix:

Product: Tesla offers electric vehicles like Model S, 3, X, and Y, known for performance, range, and autopilot features.

Promotion: Tesla relies on word-of-mouth, social media, and Elon Musk’s public influence instead of traditional advertising. Notably, in 2023, Tesla initiated its first ad campaign, focusing on vehicle safety features, marking a significant shift in its promotional strategy .

Main Competitors: BYD, Ford, and Lucid Motors.

SWOT Analysis:

Strengths:

Strong brand recognition.

Advanced technology and innovation.

Weaknesses:

High production costs.

Limited manufacturing facilities compared to legacy automakers.

Opportunities:

Expansion into emerging markets.

Increasing demand for clean energy vehicles.

Threats:

Rising competition in the EV market.

Regulatory changes and supply chain disruptions.

Finance

Financial Performance (2022–2024):

Between the 2022–23 and 2023–24 financial years, Tesla experienced a modest increase in total revenue from $96.77 billion to $97.69 billion. However, profitability declined significantly, with net income dropping from $14.99 billion to $7.13 billion, a 52.5% decrease. Gross profit also decreased from $17.66 billion to $17.45 billion. These figures indicate rising costs and shrinking margins .

Strategies to Improve Financial Performance:

Introduce More Affordable Vehicle Models: Developing and launching cost-effective models can attract a broader customer base, increasing sales volume and revenue.

Enhance Manufacturing Efficiency: Implementing advanced automation and optimizing supply chain management can reduce production costs, thereby improving profit margins.

add more statistics and detail onto this dont change the information just add onto to it and my teacher said it was lacking in the finicial parts so onto that find data to back up my information