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A study on the innovation of the tesla company

TESLA: INNOVATION THROUGH DISRUPTION

How the automotive industry is transforming Tesla is experiencing growing pains, but has willingly invited more criticism than other young companies because the automaker is brazen enough to pronounce ambitious goals and, most boldly, insist that its vision of the future of the automotive industry is the definitive one. But Tesla is forcing the auto industry to rapidly change.

  • Toyota had especially high recall rates that included software updates;
  • The fact that Tesla is still around 15 years after its commencement is impressive all by itself;
  • Premium Media Control Unit;
  • In and of itself, this is unusual, as we find that most automotive OEMs entrust and outsource the bulk of their head unit designs to third parties such as Harman Automotive, Panasonic, Alpine, Denso, Pioneer, and others;
  • This powertrain package allows Tesla to deliver a longer driving range than any other EV maker—about 200 miles versus just under 100—plus acceleration and driving performance similar to or better than a traditional gasoline-powered vehicle;
  • Not only does modularity give automotive designers many upgrade options, it improves reparability.

Large, established automakers now are making fully electric and hybrid electric cars. Automakers are starting to explore and include artificial intelligence AI in their cars, and now major automakers and U. Congressmen are discussing autonomous vehicles AVs and how best to innovate and regulate them.

Not only that, but Tesla's software design is state-of-the-art: As cars become more tech-savvy, Tesla is in the lead.

Tesla Motors: A case study in disruptive innovation

But Tesla struggles to meet deadlines and frequently delivers flawed vehicles, and profitability remains elusive. Many use Tesla's failings to argue that the company shouldn't be followed as an innovator or even as a true automaker. It turns out Tesla's story is far more complicated and nuanced than often portrayed, but the roots of its challenges come down to the company's finances and supply chain. Tesla is forcing the auto industry to change rapidly Tesla didn't invent the electric car Scottish inventor Robert Anderson did, in 1832but it was Tesla who popularized, pioneered and promoted the electric car ever since the company's founding in 2003.

None of the major automotive manufacturers were making electric cars until Tesla made it cool in 2008 with its bombastic announcement of the first luxury electric car: Since then, big automakers with lots of capital, solid supplier bases and seasoned supply chains went to work in rapidly developing and churning out their own electric cars, as consumers and governments pursue eco-friendly, low-emissions transit options.

The next electric car, released in 2010, was made by Mitsubishi Motors.

Case study: How Tesla changed the auto industry

The bureau doesn't have data on the number of EVs sold until 2011, which was 9,750. Since then, the EV market has exploded. By 2015, 71,044 EVs were sold in the U.

The auto industry is not resistant to innovation and change, but does tend to adapt slowly. Lately however, that's changed dramatically, and largely because of Tesla's disruption in the market.

Tesla has that "cool factor," something established automakers do not have, and has created hype around Tesla's EVs that other brands — like the Nissan Leaf, for example — do not get. Tesla's Autopilot, which uses AI to drive a Tesla vehicle for you with some minor assistance, has been the subject of hot debate, with some consumers misusing the technology and crashing the cars while using Autopilot.

Other automakers are following Tesla's lead and looking to create semi-autonomous or fully AVs, and that has sparked contention in Washington as lawmakers try to reconcile safety concerns with innovation-hungry automakers.

Tesla is one of the key drivers of innovation as the auto industry is forced to evolve, but Tesla also shows how difficult it is to succeed in the auto industry at all, and how there is still room for improvement within the hotly competitive, tight margin business. In fact, Tesla is a good example of how critical stable supply chains are to the success of an automotive company. Tesla's supply chain is it's Achilles' Heel Tesla doesn't meet deadlines. Tesla doesn't meet market expectations.

  1. He is also a lightning rod in the debate around mass transit with an idea some critics refer to as vaporware.
  2. Tesla's Autopilot, which uses AI to drive a Tesla vehicle for you with some minor assistance, has been the subject of hot debate, with some consumers misusing the technology and crashing the cars while using Autopilot.
  3. But because Tesla is still learning how to mass produce electric cars — relatively speaking, Tesla is still new to the auto industry — production problems still arise, making it increasingly difficult to sell and deliver quality cars at an efficient rate.
  4. Several of the printed circuit board PCB assemblies, including the main assembly, feature Tesla Motors logos and copyrights, meaning that they are all designed and controlled by Tesla.

Tesla delivers cars riddled with defects. Last fall, Tesla missed Model 3 production goals in Q3 2017 due to supplier issuesand ended up having to redesign a key part of the Model 3. What CEO Elon Musk called "production bottlenecks" continued through Q4 2017, although by then Tesla was no longer blaming suppliers, and told investors in February that the company would produce 5,000 Model 3s a week by the end of Q2 2018. Almost all of these problems can be attributed to lack of funding and the fact that Tesla is still a small company, compared to the rest of the auto industry, and so ramping up production for a new car is much harder for Tesla than it is for landed companies like Ford or General Motors.

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Tesla's supply chain is still in the development phase, and right now Tesla doesn't have the capital and supplier relationships that other big automakers have. According to a Tesla statement provided by CSIMarketthe electric car manufacturer does have more supply chain volatility than other automakers.

  • Tesla has had a competitive advantage over auto industry rivals in design innovation since day one;
  • Other EV products use lithium-ion batteries, but in lower kWh and using fewer, but larger, battery cells;
  • Not only did Tesla Chief Executive and Chief Product Architect Elon Musk demonstrate that convention could be defied, he did it in an industry with 100-year-old traditions, norms, and processes.

While we believe that we may be able to establish alternate supply relationships and can obtain or engineer replacement components for our single source components, we may be unable to do so in the short term or at all at prices or costs that are favorable to us. Tesla tries to scale high and fast, but gets bogged down by a faulty supply chain. Tesla suffers from a lack of funding and a narrow supplier base Supply chains are critical to an automaker's success, but the most critical part of the automaker's supply chain is its relationship with suppliers — and that might be where Tesla is weakest.

  1. Tesla suffers from a lack of funding and a narrow supplier base Supply chains are critical to an automaker's success, but the most critical part of the automaker's supply chain is its relationship with suppliers — and that might be where Tesla is weakest.
  2. Given that Tesla has hired its engineers from all over Silicon Valley and beyond, this was not a problem.
  3. Tesla doesn't meet market expectations. Even today, consumers can find navigation and infotainment systems designed in 2008 for sale in model-year MY 2014 vehicles.
  4. This powertrain package allows Tesla to deliver a longer driving range than any other EV maker—about 200 miles versus just under 100—plus acceleration and driving performance similar to or better than a traditional gasoline-powered vehicle. So we are routinely disappointed when we get into our cars and are forced to make do with resistive touch screens if we are lucky or LEDs and vacuum fluorescent displays controlled by dials and buttons if we are not.
  5. But as the company targets the mass market with the Model 3 and aims for 500,000 units sold in 2020, it will need to beef up its marketing. Several of the printed circuit board PCB assemblies, including the main assembly, feature Tesla Motors logos and copyrights, meaning that they are all designed and controlled by Tesla.

Loh told Supply Chain Dive that in general, the auto industry doesn't single source, and described the average auto supply chain as being far more efficient and effective than Tesla's. Tesla is technically still in the red — the company isn't profitable yet, and many critics use that fact as their main reason for arguing that Tesla isn't worth investment or even worth paying attention to.

But when it comes to suppliers, Tesla's lack of funding is a huge issue. For example, Tesla is trying to ramp up production of the Model 3, necessitating a high volume of parts and components from its suppliers. Because of that capital outlay, Tesla might hold off on paying upfront costs for the parts and wait until the car starts selling before paying suppliers. The question is are they willing to use that as a hedge?

  • Almost all of these problems can be attributed to lack of funding and the fact that Tesla is still a small company, compared to the rest of the auto industry, and so ramping up production for a new car is much harder for Tesla than it is for landed companies like Ford or General Motors;
  • The 17-inch screen is a Chi Mei Optoelectronics display with 1920 x 1200 WVGA resolution that includes a projected capacitive touch screen—the same technology employed in many smartphones and tablets;
  • BMW, Daimler, and Volkswagen set up shop in the Valley in the mid-1990s, and Honda opened its first office in 2003, the same year Tesla was founded;
  • Created a fun-to-drive electric roadster;
  • That may instill some hope in investors, but the fact remains that Tesla still has inroads to make as a trusted automaker;
  • This powertrain package allows Tesla to deliver a longer driving range than any other EV maker—about 200 miles versus just under 100—plus acceleration and driving performance similar to or better than a traditional gasoline-powered vehicle.

But because Tesla is still learning how to mass produce electric cars — relatively speaking, Tesla is still new to the auto industry — production problems still arise, making it increasingly difficult to sell and deliver quality cars at an efficient rate. At this point, most of the wrinkles in Model S production have been ironed out.

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That may instill some hope in investors, but the fact remains that Tesla still has inroads to make as a trusted automaker. We need innovation, but where tend to see the innovation happening is in the traditional OEMs who have the supplier base to leverage.

The fact that Tesla is still around 15 years after its commencement is impressive all by itself. An assembly line that produces 10,000 cars a week? While Tesla can be seen as an inspiration to the industry, it also serves as an example of what happens when you lack capital, sufficient cash flow and an unstable supply chain.

But if Tesla can keep investors hooked on its vision of a future filled with electric cars, it may just be a matter of time before it becomes an industry bedrock.