Internal Analysis

Internal Analysis - Internal Analysis As a relatively new...

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Internal Analysis As a relatively new company in the automotive industry, Tesla’s unique innovations and strong financial backing will fuel its future. Tesla Motors began as the only automaker to produce and sell a zero-emissions sports car. Tesla’s first vehicle, the Roadster, retailed roughly at US$109,000 since its production in 2008. The high cost premium was aimed at a market of consumers or “early adopters.” As with any new technology, there will be a high unit cost before it can be optimized. They are entering at a high end market where customers are willing to pay a premium. Then as the volume increases, there should be lower price for the successive models. The revenue that was generated through the sales of the Roadster was invested directly into R&D (Research and Development) to optimize their technology with visions of creating less expensive vehicles. Therefore, the company’s net income was around $-146.8 million in 2010. In addition to financial backing of many wealthy investors in the Silicon Valley, Tesla has also been approved to receive US$465 million in interest-bearing loans from the United States
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Internal Analysis - Internal Analysis As a relatively new...

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