Faith Integration Assignment: Tesla Motor Company
BUSI690: Policy and Strategy in Global Competition (D02)
Liberty University
Dr.Waldo
Integration of Faith Assignment
Tesla Motors Inc is an automotive company who is trying to save their company for the
future. They build and sell electric vehicles as well as sell and service them. Tesla had a great
idea building this type of vehicle which is great for the environment and saves people money on
gas. They decided to build a better brand than their Model 3 since things did not do well when it
initially launched in 2017. Tesla faces several issues around production and sales goals. Tesla
lowers prices but raises them back on car purchases, they are trying to figure out how to keep the
company going. One goal Tesla is trying to meet is their delivery problem. The company fails to
deliver a mass supply of electric vehicles and they are trying to figure out how to change this
issue.
According to Business Insider, Tesla didn’t even contact two of its vendors about
assisting in Model Y production until after the unveiling announcement (Latch, 2019). This is a
major issue for Tesla, when a company cannot hold their end of the job up, it could cause major
reputation damage and loss of vendor support. Another issue Tesla is facing is debt. As of 2019,
Tesla is $1.2 billion and has no clear way of reducing the debt according to (Latch, 2019). Tesla
has decided to cut their budget in critical ways and is planning to expand more in China (Latch,
2019). Tesla is really dealing with some bad mojo. They have to find ways to come back and be
that competitive company they once were.
According to Thompson Tesla Motor Company seems like they are behaving unethically.
Since their demand of producing 3,000 electric vehicles in a certain time frame did not fall
through, they are making their employees work overtime to get the production done they were
reaching for. According to Thompson, in the textbook it explains that vertical integration has
some substantial drawbacks beyond the potential for channel conflict (Thompson et al., 2020,
169). Since Tesla has faced drawbacks on their products they have to find ways that will enhance
their competitiveness. What happens when companies suffers from drawbacks are slowly
adopting technology advances or more efficient production methods, less flexibility in
accommodating shifting buying preferences, enabling the company on a economies scale, and
capacity-matching problems (Thompson et al., 2020, 170). These types of issues Tesla is facing
since they have low production, low revenue, and low sales. While Tesla’s mission is to
accelerate the world’s transition to sustainable energy has required large investments throughout
the value chain, this strategy has not been without challenges (Thompson et al., 2020, 171).
Business ethics is the application of ethical principles and standards to the actions and
decisions of business organizations and the conduct of their personnel (Thompson et al., 2020,
262). Tesla has not completely followed business ethics. Putting the company on the line to
produce more than they could handle is not ethical. An automobile company has to put a
reasonable deal on the table which will work for the company as well as their employees. When
you think of making 3,000 vehicles in a certain amount of time, this puts employees in a bind
since they will be working around the clock and not able to spend time with their families. The
company is in a bind since they would have to accommodate this extra time. Companies have to
think about the benefit, Tesla has suffered before when the cars they built had some issues where
they had to recall a lot of them. When you think about a production of 3,000, what would happen
if they had to recall all 3,000 of those vehicles. This means lost time and money.
In Proverbs: 22:1, “A good name is rather to be chosen than great riches, and loving
favour rather than silver and gold” (KJV, 2021). In 1 Timothy 6:10, “For the love of money is the
root of all evil: which while some coveted after, they have erred from the faith, and pierced
themselves through with many sorrows (KJV, 2021). I chose these two bible verses since I felt
they reflect what I wrote about the Tesla Motor Company. In every Industry, every company has
a motive and that is to make money. Sometimes it is not all about making the money. It seems
though the more money people make the more evil they possess. The Tesla company is looking
to be better than their competitors, being the best in the world when it comes down to creating
electric vehicles. Now will this benefit the company or the people who are buying the vehicles
from them. The saying eye for an eye, goes a long way. Tesla has to think about or put
themselves in their clients shoes; think about if it were them buying the product; how would they
perceive things. God puts everyone in a position for a reason. The Tesla company is not doing
something right; they are not following the path God has set for them. They have the tools but
are not using them in the way Jesus wants them to use them. If they rethink their whole outlook
on the company itself and trust Jesus to put things in place the right way, they will succeed and
be that company they are trying to figure out how to be.
References
Latch, R. (2019, 10 2). 4 Biggest Problems Tesla Still Has to Solve. Motor Biscuit.
Thompson, A. A., Gamble, J. E., Peteraf, M. A., & Strickland III, A. J. (2020). Crafting
and Executing Strategy: The Quest for Competitive Advantage (22nd ed.). McGraw-Hill
Education.
