Tesla Motors Company (2)

Tesla Motors Company

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Institution

Abstract

The current transport sector depends on the fossils fuels leading to the emission of the greenhouse gases, which have a detrimental effect on the environment. The electric vehicles have an advantage of emission of little or no greenhouse gases. Tesla motor industry manufactures electric vehicles.

To study their effectiveness, the features of Toyota vehicles, the market strategy, and environmental conservation effects were conducted. The main search tool was Google using various terms. The results showed that Tesla produces electric vehicles that do not emit greenhouse gasses to the environment and have the best strategy that ensures market competitiveness.

Tesla Company has succeeded in innovating an environmental friendly vehicles using advanced technology. Furthermore, the company has invented the best market model that can be emulated by other companies. The electric vehicles have a global impact through reduction of global warming and human diseases associated with the effects.

Tesla Motors Company

Introduction

Currently, the transport sector depends on fossils fuels leading to the emission of the greenhouse gases, which have a detrimental effect on the environment (Erickson, 2017). The advent of electric vehicles is becoming the best alternative to curb these adverse effects. The advent of novel and high technology in the motor industry is essential in solving challenges posed by old technologies. The challenges posed by the motors with internal combustion engines include environmental pollution and low performance. These challenges if not solved, could lead to detrimental health and environmental effects. The survival of the planet earth is mainly dependent on government policies that are aimed at achieving successful solutions to solve the challenges. Tesla motor industry, through its innovations, has developed electric cars, which bring extraordinary characteristics such as pollution-free, noise-free, and high performance in the motor industry.

Literature Review

The automobile industry faces many challenges, including environmental impact and the fuel economy. Ecological safety is a challenge requiring a quick solution because of the rising number of vehicles. Since the 1980s, the number of privately owned vehicles has increased worldwide (Jung & Koo, 2018). The organizations dealing with the protection of the environment have sounded an alarm because of the rise in the number of cars, which has become a global issue. The US estimated that the vehicles produce up to 70% of the harmful emissions into the environment (Mandal et al., 2019). The annual estimated amount of pollutant emission is about 22 million tons from different origins. The automobile vehicles with internal combustion were identified to be the cause of pollution. Therefore, the advent of electric cars is essential to solving the alarming environmental issues.

The California Air Resources Board (CARB) in 1998 adopted a decision indicating the number of cars with zero exhaustion, which is sold per year (Erickson, 2017). There was a registered increase in the numbers of zero exhaustion cars sold with 2% in 1998 and 15% in 2003 (Mandal et al., 2019). The EU government promoted the shift to electric vehicles from 2015 to 2020 by increasing the fine for the excess emission of carbon dioxide by the cars.

The emission that gets into the environment drain into the open water, the drainage basins, and into the underground water, leading to the contamination of the water bodies. It has been established that the dust carried by the cars have over 200 different types of chemical substances, with some being radioactive (Jung & Koo, 2018). The accumulated dust in the lungs dissolves in blood and cause human diseases, including allergies, organ diseases, and cancer. Furthermore, noise pollution is notably significant in the contribution to the development of hypertension, reduced life expectancy, hearing deterioration, and increased aggression. The increased electric equipment during the traffic flow causes electromagnetic pollution. Major human body systems such as the immune system, central nervous system, the endocrine glands, and the eyes are sensitive to electromagnetic pollution.

The electric cars are essential because of their ability to revolutionize how the energy is spent, created, and redirected. Electric cars are a solution to the alarming negative effects of conventional cars. More so, they have been demonstrated to have other benefits in society. Notably, electric cars have better energy efficiency. The electric vehicle has 75% efficiency concerning turning the input energy into the kinetic energy, also called moving energy (Rievaj & Synák, 2017). The conventional cars have 25% efficiency. It has been demonstrated that the electric cars based on the fact they have fewer parts that fuel energy have less energy conversion resulting in less energy loss. Furthermore, the electric brakes are regenerative allowing the car to charge its battery while braking. Secondly, electric cars have less greenhouse gas emission. Greenhouse gases contribute to global warming (McDermott, 2017). The advent of electric cars results in elimination or reduced greenhouse gas emission. Therefore, the electric cars are essential for in the creation of a better environment because they are clean and safe.

Methods

The environmental pollution is contributed mainly by the vehicle emission of greenhouse gases. The case of Tesla motor industry was picked through the assessment of the possible innovations that solve the environmental issues (Mandal et al., 2019). The literature was searched in the Google search tool using terminologies such as greenhouse emission, fuel conservation, environment-conserving cars, and electric cars. The best electric motor industry was chosen, and the Tesla motor industry was the best in the search. Various types of motor industries were searched in Google, and the motor company found is Toyota.

The comparisons were made based on customer acceptance, innovation strategies, market challenges, and way forward. The Tesla production history was compared from the time it stated car production. Furthermore, the market comparison was conducted based on the available published information. The three companies were compared also based on their innovativeness and the ability to solve environmental issues.

The various market strategies were compared, and the unique ones focused on, the contribution of the cars to the environment conservation, the features of the vehicles, and the preparedness to meet the market requirements (Nowak, 2019). These comparisons are essential in the determination of the prospects of Tesla industry.

Results

The assessment of the contribution of the Toyota cars and Tesla cars contribution to greenhouse showed many improvements in the two types. Toyota Company has advanced in its creation of brands that use less fuel to travel long distances. The cars have been designed to produce less emission to slow down the rate of global warming. However, this does not mean that there is no emission. On the other hand, Tesla cars are environmentally friendly, that uses electricity as fuel (Rievaj & Synák, 2017). The emissions are minimal, and in cases were the renewable source of electricity was used, the emission is zero.

The features of the cars are different with Toyota cars having the features of a conventional car while Tesla cars have been improved to use electricity. The Toyota cars have internal combustion engines that utilize fuel to provide energy to move the car while Tesla cars use electricity. The electric cars have the electric motor as the engine instead of the combustion engine. The cars use the large traction battery pack as the source of power for the electric motor engine. The battery needs to be plugged in at a charging point, which can be a wall outlet or the charging station. The car emits no exhaust because it uses electricity, and does not have the liquid fuel compartments such as the fuel tank, fuel line, or the fuel pump.

Market issues were also assessed based on the market strategies employed by the two companies. The Toyota company uses the generic strategy, which combines the cost leadership and broad differentiation generic strategy. The cost leadership involves the minimization of the cost of the operations and the selling price. The broad differentiation generic strategy requires the development of the business and the product that is unique to ensure competitive advantage. The combination of the two strategies allows the company to reach the global market. Tesla, on the other hand, uses the high-end innovation strategy through the creation of a unique high-tech product that cannot be imitated by the competitors. The strategy ensures high market performance while at the same time, reducing the cost.

Discussion

Solving the issues that arise from daily life is an essential aspect of innovation. The environmental problems that are posed by the greenhouse gases are alarming and require immediate intervention (Nowak, 2019). The advanced technology is one of the resources that can be used creatively and innovatively to solve the problems affecting the world. Global warming is a global issue that threatens human health and the environment. The inhabitants of the planet already feel the effects.

The plug-in electric cars are practical and reduce the emission to the environment. Furthermore, the cars have the advantage of saving money. The fueling of the cars with electricity has many advantages over conventional vehicles with an internal combustion engine. The electric motors react quickly and are highly responsive (Narins, 2017). The cars are digitally connected with the charging stations providing alternative charging points. This is different from the common fuel stations for conventional cars.

The electric cars are rechargeable just like the hand gadgets where charging is required prior to use. The availability of the electric ports in many points such as at home, at work and along the road, the use of electric cars becomes easier than the conventional cars requiring a recharge at the fuel station only (Rievaj & Synák, 2017). The electric cars will help the state to be diverse concerning the fuel choices that are available for transportation than the typical fueling. The US, for example, uses about nine billion barrels of petroleum annually, with about one-third channeled to transportation. The reliance on petroleum makes the nation vulnerable to the cases of price spikes and the disruptions of the supply. The use of electric vehicles will help solve such problems because electricity in many countries is domestically produced from domestic resources, including nuclear, coal, renewable resources, and natural gas (Ciccone, 2018). The problem of emission will be reduced by electric cars use, and the risk of changes in smog and climate will be reduced. Consequently, there will be improved health and reduction of the ecological damage associated with the use of conventional cars. More so, charging the electric cars with renewable energy minimizes the emission the more.

The valuation of Tesla has increased over time. The fact that the Tesla motor industry gained more credibility in 2013 when the stock prices increased by more than 300% is encouraging (Narins, 2017). The comparison between the strategy used by the industry and the technology was essential to find sectors to improve. The comparison was extended to other companies that registered success as Tesla. The Tesla shares increased from 2013 to March 2019, trading at about $427.64.17 (Nowak, 2019). The valuation of Tesla has increased even though, in the past, the industry had registered losses. Tesla, like other tech companies, adopted the disruption strategy and sold directly to its customers. Therefore, this resulted in the building of loyalty like the iconic tech companies like Apple.

Tesla motor industry invented the successful business model. Considering the electric car product sold by the industry, Tesla did not only invent the electric car but invented the best and successful business model by introducing the car into the market. One of the challenges of the adoption of the electric vehicle is the charging points in the market. Tesla’s strategy involved the building of the network of charging stations to solve its market obstacles (Nowak, 2019). The unique business model included the control of sales and the services. Consequently, the business model led to the soaring of sales.

Tesla used the innovative high-end strategy to win the market competition. The Tesla motor industry used the high-end technology disruption strategy by the production of higher technology innovation that is not easy to imitate by other companies. The company focused on using technology to lower the cost of performance per unit over time rather than using technology to improve the performance. The high-end technology innovations have some unique characteristics, including selling at a premium price rather than the discount price and looking for the least sensitive buyer’s opinion before spreading to the market. Furthermore, the strategy targets the competitor industry’s most profitable customers. Therefore, the production of an electric car was one of the high-end technology because other companies could not imitate the product. Consequently, Tesla industry has remained dominant in the market from 2013.

Conclusion

Overall, the use of advance technology through creativity and innovations are meant to solve the challenges that present themselves in our daily lives. Greenhouse gases are posing a significant threat to the environment. The high contributors of h greenhouse gases are the vehicles through their waste emissions. The development of electric cars has helped in the reduction or elimination of the emission. Tesla motor company have made steps in the development and selling of electric vehicles to the customers. The use of high-end innovation strategy was a massive step in the realization of their success. Moreover, the company has used other important strategies to ensure they remain at the top of the car market.

References

Ciccone, A. (2018). Environmental effects of a vehicle tax reform: Empirical evidence from Norway. Transport Policy, 69, 141-157.

Erickson, L. E. (2017). Reducing greenhouse gas emissions and improving air quality: Two global challenges. Environmental Progress & Sustainable Energy, 36(4), 982-988.

Jung, J., & Koo, Y. (2018). Analyzing the effects of car sharing services on the reduction of greenhouse gas (GHG) emissions. Sustainability, 10(2), 539.

Mandal, A., Cho, H., & Chauhan, B. S. (2019). Environmental impact of electric & biodiesel Car-A review. International Journal, 7(3), 256-259.

McDermott, E. G. (2017). Examining the effects of policy interventions on increasing electric vehicle adoption in California.

Narins, T. P. (2017). The battery business: Lithium availability and the growth of the global electric car industry. The Extractive Industries and Society, 4(2), 321-328.

Nowak, D. J. (2019). The atmospheric system: Air quality and greenhouse gases. In Understanding Urban Ecology (pp. 175-199). Springer, Cham.

Rievaj, V., & Synák, F. (2017). Does electric car produce emissions? Zeszyty Naukowe. Transport/Politechnika Śląska.