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Running head: COMPANY ANALYSIS: TESLA INC 1Company Analysis: Tesla, Inc.Southern New Hampshire UniversityECO 201
Company Analysis: Tesla Inc.2Company Analysis: Tesla Inc.This paper outlines business and market data which impacts the business sustainability, evaluates the structure of the market, showing the best and most effective decision-marking strategies and recommendations for Tesla Inc. (formerly Tesla Motors). Tesla Inc., using cutting edge technology, sets atop a highly contested and revolutionary market offering eco-friendly vehicles without sacrificing on luxury, comfort and performance.History of Tesla Inc.Tesla Inc. (formerly Tesla Motors), was founded in 2003 based in Palo Alto, California, which specializes in electric vehicles, lithium-ion battery energy storage and also solar panel manufacturing, through the subsidiary company SolarCity. The company was founded by MartinEberhard and Marc Tarpenning, who also financed the company until the Series A round of funding. The company now list Series A round investors Elon Musk, JB Straubel and Ian Wrightas co-founders which only came about after a lawsuit and resolution. Musk led the Series A in February 2004, joining the board of directors as its chairman and became the controlling investorin Tesla, providing majority of the $7.5 million round with personal funds.On July 11, 2005 Tesla signed a Roadster production contract with Group Lotus to produce"gliders" (complete cars but without powertrain), which used an AC motor descended directly from Nikola Tesla's original 1882 design. The Tesla Roadster was the first production automobile to use lithium-ion battery cells and the first production EV with a range greater than 200 mi (320 km) per charge. In May 2006, Musk also led Tesla's Series B US$13 million investment round and co-led the third, US$40 million round in May 2006. Tesla's third round included investment from prominent entrepreneurs including Google co-founders Sergey Brin and Larry Page.
Company Analysis: Tesla Inc.3In late 2007, Tesla brought on Michael Marks, and later Ze'ev Drori, to replace Eberhard asCEO. Drori temporarily returned the company to profitability, reducing the company's workforce by about 10%. In October 2008, Musk became CEO and laid off an additional 25% ofTesla's workforce. In December, a fifth round added another US$40 million, avoiding bankruptcy. By the beginning of 2009, Tesla had raised US$187 million and delivered 147 cars. Musk himself had invested US$70 million. In May 2009, Daimler AG acquired an equity stake of less than 10% of Tesla for a reported US$50 million, again saving Tesla. During the month of June in 2009, Tesla was approved to receive US$465 million in low-interest loans from the 2007US$8 billion Advanced Technology Vehicles Manufacturing Loan Program by the United States Department of Energy. Tesla received that funding in 2010 and supported engineering and production of the Model S, as well as the development of commercial powertrain technology.