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MGMT620-Assignment2-Teslac.docx

Tesla, Inc. (previously known as Tesla Motors, Inc.), is an American car maker and energy company established in Palo Alto, California. The association has some expertise in electric vehicle production and, through its SolarCity backup, solar panel board manufacturing. Tesla works in various assembly plants and production plants, such as Gigafactory 1 close to Reno, Nevada, and its core vehicle producing office at Tesla Factory in Fremont, California. As of March 2019, Tesla sells Model X, 3, and S cars. It is tolerating bookings for the Roadster (2020), Model Y, and Semi vehicles. Tesla additionally sells Powerpack, Megapack, and Powerwall batteries, Solar based panel boards, Solar based rooftop tiles [footnoteRef:1]. [1: Introduction (Reference 1)]

Tesla was established in July 2003, by engineers Marc Tarpenning and Martin Eberhard, under the name Tesla Motors. The organization's name is a honor to Nikola Tesla who was an engineer. In the initial stages of Series A funding, Tesla Motors was joined by Elon Musk, Ian Wright and Ian Wright, everyone who joined the company are permitted to call themselves as co-founders of the corporation. Elon Musk, who in the past worked as Chairperson and is the current CEO, said that he envisioned Tesla Motors as an independent automaker and technology organization, went for in the long run offering electric vehicles at costs reasonable to the normal customer. Tesla Motors changed its name to Tesla in February 2017 [footnoteRef:2]. [2: Tesla motors Inc.]

Following 10 years in the market, Tesla situated as the world's first-class plug-in vehicle creator in 2018, both as a brand and via car gathering, with 245,240 units were conveyed with a piece of the overall industry of 12% in the module portion vehicle deals. Tesla vehicle deals in the United States of America extended by 280% from 48,000 out of 2017 to 182,400 by 2018, and around the world were expanded by 138% from 2017. In 2019, Tesla got support to start their generation in China [footnoteRef:3]. [3: Tesla cars ranked as top-rated plug-in car maker]

As of March 2018, Tesla had given 6 product recalls for the Model S, 2 for the Model X, two for the Roadster [footnoteRef:4]. [4: Recalls]

On June 4, 2017, the (American Automobile Association -AAA) raised insurance rates for Tesla car buyers following a report from the (Highway Loss Data Institute - HLDI). The report presumed that the Model S crashes 46% more frequently and is fifty percent more costly to fix it when compared to the other cars in the industry [footnoteRef:5]. Likewise, the Model X was determined to crash 41% more frequently and to be 89% more costly to fix than comparative vehicles [footnoteRef:6]. Accordingly, American Automobile Association increased insurance rates on Tesla vehicles by 30%. Tesla said that the investigation is "severely flawed and not reflective of reality”, in any case, Tesla neglected to give any conflicting numbers. Presently, Russ Rader, the representative for the (Insurance Institute for Highway Safety - IIHS), affirmed the AAA's investigation and that "Tesla’s get into a great deal of accidents and are expensive to fix thereafter" [footnoteRef:7]. [5: Crash rates (Reference 1)] [6: Maintenance costs] [7: Insurance costs are expensive]

Tesla has been censured for constantly overpromising and underdelivering. Conveyance, delivery dates for new cars/vehicles and new vehicle features slipped on the Model S, Model X, Model 3 and Roadster. Trend setting innovations like the probability of an enormous system of sun oriented self-controlled supercharger stations (first establishment was in 2012; just two were sun based fueled starting late 2014) moreover slacked predictions [footnoteRef:8]. [8: Delays in vehicles delivery]

The upcoming vehicles of Tesla Inc. in coming years would be Roadster 2020, Tesla Semi, Model Y and Cybertruck.

Through an astonishment uncover toward the finish of the occasion that presented the Semi. Tesla divulged the Roadster 2020. Musk said that the new-found model will have a range of 620 miles (1,000 km) on the 200 kWh battery pack and will accomplish 0–60 mph in 1.9 seconds; it additionally will accomplish 0–100 mph in 4.2 seconds, and the top speed will be more than 400 km/h (250 mph). The vehicle will have three electric engines taking into consideration all-wheel drive, and torque vectoring during cornering and the SpaceX Package which will incorporate SpaceX cold air engines will speed up much more [footnoteRef:9]. [9: Roadster 2020 (Reference 2)]

The CEO of Tesla (Elon musk) Sent an Extraordinary Email to Tesla Employees. They launched a new Model 3 car. Musk had planned to produce 2000 vehicles per week. Tesla has struggled to fulfill its previous production targets [footnoteRef:10]. [10: Email sent by Elon musk(Reference 4)]

For this reason, it was a unique challenge for Elon musk to achieve these production goals. However, now the production per week is 6000. At the beginning of the email, he congratulated the employees on completing the target production. The production team completed their third-week production of Model 3 vehicles over 2000. It is more than double the last year's production rate. He told that most of the thing of Model 3 is better than any other car in the world. It is not enough for us. We must keep going until the Model 3 will be ten betters than any other car in the world. I am serious not kidding.

We must design and built our car with perfect accuracy and precision. If the owner claims that their measurements do not match the Model 3 specs, then we have to prove that measurement is wrong. Musk always communicates to the employees only. To reach employees' emotional touchpoints, Musk encourages them with buy-in for his vision. On this email musk suggested to his employees that you have to learn from criticism. Do not take the criticism as unfavorable. You have to transfer negative feedback to a positive result. Indeed, you are not a real company until you can generate profit. Revenue should exceed costs. So, go forward and positively take criticism and improve yourself, then the output will be better. End of the email, Musk gives some recommendations about productivity.

Musk requested everyone to attend the meeting. However, you must provide valuable things at the meeting, and you must keep them very short. Please do not waste others' time. Without a very urgent matter, do not need to arrange frequent meetings. If you cannot add value to the meeting, you can leave the meeting. He also tells that you cannot force someone to stay in the meeting.

He said that please do not use acronyms or nonsense words for objectives, processes, or any software in our company. Always use easy things that everyone can get quickly and save time. People do not have to memorize glossary in Tesla's function [footnoteRef:11]. [11: Meeting culture (Reference 4)]

Communication should be the accessible and short way. Musk also said that we must get the job done. You do not need to go through the chain of command. You also cannot force anyone to go through the chain of command until he is doing well in his way. Poor communication between depths is a significant issue for a negative result. If someone must talk to the manager, talk to the director, talk to VP, talk to someone to do the actual task, then it can be rush for him. It should be ok for anyone to talk directly and make the actual thing happen. Musk is the CEO of the Tesla company and responsible for the company culture. By giving these tips, he has done a great job of making his position clear [footnoteRef:12]. [12: Internal Communication (Reference 4)]

This email is excellent examples of how good communication can be an effective seek to reach the emotional level of people and motivate them.

Employees said that people are scared to correct Musk. "Because of the stress that he puts on his whole employees in the company, even though his senior employees have a good experience, they will think twice to speak up with him [footnoteRef:13]. [13: Constant pressure on employees (Reference 6)]

 

Steve Jobs says that hiring people and telling people what to do is something which every company do; they should tell us something to grow our business. Employees are the assets and growth of the company. Each employee has a motive and has a different approach, have faith in them.

 

More than two senior employees said Musk didn't deliver his top management group a whole lot of independence to make selections. Employees say that "Elon musk has zero levels of autonomy & There is only one decision-maker in tesla and its Elon musk." Elon musk has a unique personality; his strength is also his weakness to him. i.e. he removes all obstacles and builds paths for the project, but under his presence, employees will be in such pressure that they might do some damage to the project.

 

Autonomy means having a process in which you can make as a minimum several the decisions to your own at the workplace. The degree of independence changes dramatically, and it depends on the job type. For most people, it's essential to understand that they've choices, that what they may be doing it in their very own volition, and that they're responsible for their actions.

 

Musk has recorded that his team has worked more in a week when compared to other companies in a year, like more than 100 hours a week. Poor attention, poor quality of work and falling asleep by accident are the symptoms that employees have overworked and achieving their maximum capabilities.

To increase the productivity of employees and overall company performance, some amount of rest is a must. Remote people are greater productive. Remote workers are extra efficient, they work extra hours, take less leave and in preferred are more engaged at work.

Even a tesla car needs to get charged to rerun 100 miles.

Tesla in mid-January slashed 7% in their workforce after already cutting 9%, within a year. Elon believes that cutting off the employees will save money and will boost up the sales of model X and S [footnoteRef:14]. [14: Cutting of employees (Reference 7)]

 

Manufacturing of cars and operating the plan in the warehouse is still trouble in Tesla, and they need to hire a skilled manufacturing director to make more extended periods plan to full-fill production requirements. Many firms were asking their team of workers part-time options as a manner to cut prices. Getting employees to reduce their working time using the simplest one or two days a week can produce huge savings. It additionally ensures mind energy remains in the organization and it facilitates keep employee morale.

 

If a task should take a year to complete, at that point, Elon needs it done within a week. He won't spare a moment to reject it a half year of work since it's not quite enough, but instead, in this manner, he doesn't change the calendar. As the organization is coming up short on cash, slicing employments. Elon Musk, who is often worried about the dangers of global warming and carbon emissions, used his jet to fly to Texas taking his family to Western Asia (Israel) for Spring holidays.

 

Holiday trip occurred just after cutting down 3,500 jobs of people to cut costs.

 

Tesla, the people choice company needs a Chief Executive officer that desires to put all the efforts on getting the ideal US electric automobile carmaker back on its worth. The BOD at Tesla needs to consider more experienced CEOs to make better decisions for the company. They may also need a more experienced CFO and a director of manufacturing to run the company smoothly. Leaders guide people do not command them [footnoteRef:15]. [15: Leadership (Reference 8)]

This aspect of organizational culture features the significance of workers' capacity to quickly react to patterns and changes in the global market. For instance, the company's HR give the ability to create bleeding edge items that match or surpass those from contending car firms. Along these lines, Tesla's corporate culture encourages business strength through quick reactions to current issues and difficulties in the worldwide car industry [footnoteRef:16]. [16: Move fast (Reference 9)]

In developing cutting-edge products, Tesla must guarantee that its corporate culture urges workers to break new ground. This social trademark perceives the significance of new thoughts and arrangements; however, it additionally underscores the advantages of thinking about unusual ways. For instance, human asset chiefs train representatives to go past ordinary cutoff points of profitability and imagination in car configuration, prompting the improvement of new answers for vitality and transportation needs. This condition opens new open doors for Tesla Inc. to deliberately improve its business execution. This social condition likewise makes the organization a compelling substance in inciting radical thoughts in the worldwide car and vitality arrangements showcase [footnoteRef:17]. [17: Do the impossible (Reference 9)]

This feature of the organizational culture centers around the constant idea of development at the organization. For instance, the organization persistently examines and creates arrangements that improve current vitality stockpiling item structures. In this setting of the business examination, steady advancement creates forefront electric autos and related items.

These principles revolve around identifying root factors to understand and solve problems in the real world.

Tesla encourages employees to think them as owners. Ownership mindset is a powerful tool that motivates employees to give their best to the organization [footnoteRef:18]. [18: Think like owners (Reference 9)]

For improving business Tesla, Inc. employees are working as a team with organizational culture. For instance, this social trademark has limitation conflict through combination. Such combination furthermore creates cooperative strength in the companies HR. In the global car competition Tesla’s intensity has made by collaboration. This binding together social methodology gives extra encourages to the corporate administration and technical usage by the organization [footnoteRef:19]. [19: We are all in (Reference 9)]

If you want to be a leader and want people to follow you, you must do something which is worth to inspire your employees. For this purpose, Elon Musk himself works more than 40hrs a week. He feels that a employee must put in more than 40 hrs. a week so that the target achieved is more than an average employee who works idle working hours by him. He feels that hard work is the key to success for any company [footnoteRef:20]. [20: Show others how it’s done (Reference 10)]

Every employee should have a goal in his life. A person without a goal in life is like a ship without a direction. A clarity about your final output depends upon the goal you set for yourself [footnoteRef:21]. [21: Lead with purpose (Reference 10)]

Elon Musk thinks that its employees should always think out of the box. For this he encourages creative thinking. He believes that by encouraging employees to think differently it will help in the overall growth of the company.

Individual efforts are as important as that of a team. Elon Musk tells his employees that the growth of the company thrives on the teamwork of the company. Every employee should work as a whole unit. This will help to make unity for the company and will contribute to the overall growth of the company [footnoteRef:22]. [22: Be collaborative (Reference 10)]

Failures are steppingstone to success. Elon Musk thinks that if a person does not fail, he won't know the value of success. He encourages employees to come up with innovative ideas which will benefit the company. Being innovative is a strong characteristic of an effective leader.

A strong leader is always judged by his decision-making abilities. A leader should be able to come up with quick and accurate decisions that are beneficial for the company. Delay in decisions often leads to poor growth and demotivates the employees.

In today's competitive world it is very necessary for a leader to be flexible with change. An employee should always be comfortable with change which comes on its way. By tackling changes, a person becomes more efficient in its overall progress.

An employee should tend to keep a high standard for himself. For this all departments should introspect on their strengths and weaknesses. This will enable the employees to be motivated and set a high standard for the company. Elon Musk believes that a person should always dream big [footnoteRef:23]. [23: Set exceptionally high standards (Reference 10)]

Elon Musk believes that the company should not hire employees just for the heck of filling the vacant positions. For this the HR manager plays a vital role, he should always evaluate the employee as per company hiring standard. This will help the company to put the right people at the right place [footnoteRef:24]. [24: Put the right people in the right role (Reference 10)]

Work done by each student

I confirm that I was an active part of our team assignment.

I confirm that I have read the full report and checked it for plagiarism and therefore I can be held accountable if any part of the team assignment shows plagiarism.

1. Rohith Reddy Nagula – 1233690 – Page 2, 3 from foot note 1 to foot note 09 is done by me

2. Jahid Mollah – 1257733 – Page 4, 5 from foot note 10 to foot note 12 is done by me

3. Mudhabir Mehmood – 1244606 – Page 5, 6, 7 from foot note 13 to foot note 15 is done by me

4. Neeraj Bommagani – 1247828 – Page 7, 8 from foot note 16 to foot note 19 is done by me

5. Dhaval Panchal – 1247140 – Page 8, 9 from foot note 20 to foot note 24 is done by me

References:

1. Tesla, Inc. (2019, December 4). Retrieved November 22, 2019, from https://en.wikipedia.org/wiki/Tesla,_Inc.

2. Tesla Roadster (2020). (2019, December 2). Retrieved December 1, 2019, from https://en.wikipedia.org/wiki/Tesla_Roadster_(2020).

3. Tesla Semi. (2019, December 3). Retrieved December 6, 2019, from https://en.wikipedia.org/wiki/Tesla_Semi.

4. Bariso, J. (2018, April 23). Elon Musk Just Sent an Extraordinary Email to Tesla Employees. Retrieved from https://www.inc.com/justin-bariso/elon-musk-just-sent-an-extraordinary-email-to-tesla-employees.html.

5. Atkins, B. (2019, February 25). Tesla's Leadership Challenge. Retrieved from https://www.forbes.com/sites/betsyatkins/2019/02/25/tesla-is-imploding-again/#47ec491968e1.

6. Ruthumohnews. “Elon Musk Pulls 80- to 90-Hour Work Weeks - Here's How That Impacts the Body and the Mind.” CNBC, CNBC, 3 Dec. 2018, https://www.cnbc.com/2018/12/03/elon-musk-works-80-hour-weeks--heres-how-that-impacts--your-health.html.

7. Horowitz, Julia. “Tesla Is Slashing Its Workforce by 7% to Make a Cheaper Model 3.” CNN, Cable News Network, 18 Jan. 2019, https://www.cnn.com/2019/01/18/business/tesla-layoffs-elon-musk/index.html.

8. “Elon Musk Leadership Analysis Essay - 1719 Words by Paperdue.” Paperdue, https://www.paperdue.com/essay/elon-musk-leadership-analysis-2166486.

9. Meyer, P. (2019, February 22). Tesla Inc.'s Organizational Culture & Its Characteristics (Analysis). Retrieved December 7, 2019, from http://panmore.com/tesla-motors-inc-organizational-culture-characteristics-analysis.

10. Lahey, K.-A. (2019, February 1). Top 10 in Leadership from Elon Musk. Retrieved December 5, 2019, from https://www.predictivesuccess.com/blog/elon-musk-top-10-leadership-lessons/.

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