Requirements of Country Report
⦁ Minimum of 8 sources – not Google and Wikipedia.
⦁ Minimum of 8 pages plus graphs, pictures, etc.
⦁ Describe in detail, the geography, people, political system, economic system, and legal system.
⦁ Describe status of economic development and discuss reasons for this state of development.
⦁ Provide a brief history of the country.
⦁ Any other additional pertinent information.
Questions your Country report should answer:
⦁ Does your company currently do business in your selected country? Donna (DB)
Tesla Inc. currently does business in China.
⦁ If so, describe the business activities. Donna (DB)
Tesla has a manufacturing Gigafactory in Shanghai that produces Model 3/Model Y electric cars. They are planning to build a design and engineering center in Beijing to develop China-designed vehicles for the global market. (Jie, 2022)
Jie, Y. (2022, Feb 10). Tesla to Locate China Design Center in Beijing. Retrieved from The Wall Street Journal: https://www.wsj.com/articles/tesla-to-locate-china-design-center-in-beijing-11644508456
⦁ If not, looking at the company’s business activities, identify a product or service to introduce into the country.
⦁ Why did you select this product or service?
The Market share of EVs has grown significantly over the past decade, from a negligible amount to nearly 10% of the Chinese vehicle market. Deloitte projects that this number could be more than 40% by 2030. (Electric vehicle trends | Deloitte Insights)
⦁ What is your company’s position on ethics, corporate social responsibility and sustainability? How will this be shown in how your product is introduced to your country? Arturo AR
Tesla has a mission with an emphasis on social responsibility; it strives to develop products that have both a societal and economic benefit. Industry analysts and consumers alike see this as a distinct advantage in the marketplace. This can be shown when introduced by having a “doing it right the first-time mentality.” This can also be shown by having a reliable product and excellent customer service.
⦁ What are the ethics in your selected country? How did you measure? What scales are used? -JJ
The significant ethics to be followed in China in terms of business operations is the observance of the stated requirements and regulations to business operations and avoidance of corruption (Kaplan, 2022). I measured these ethics using the perceived characteristics of any given working environment.
⦁ Is your country a member of WTO or other trade organizations? -JJ
China has been a World Trade Organization member since 2001.
⦁ How does this impact your company and business with the country?
⦁ What government policies are in place that will affect your company? -DW
How much FDI is in place in your country? Describe the types of FDI in the country. How might your company participate in FDI? Is this recommended? Why or why not?
In 2022, Foreign Direct Investment in China was $212.476 billion USD,
FDI stock as of 2020 stood at 1,918,828. Greenfield investments in China stood at 412 in 2022, but in 2019 that number was 835, and 871. The largest sector by far was Manufacturin, which in 2019 accounted for 25.5% of foreign investment, followed by real estate, business services, and software services. https://santandertrade.com/en/portal/establish-overseas/china/foreign-investment, true source was Chinese statistical yearbook.
Tesla might participate in this FDI in the construction of manufacturing sites, the development of software and engineering teams within the country, and the construction of retail sights for Tesla motors and power options. In 2020 the company completed a $2billion dollar factory in China, in a revolutionary step in the openness of Chinese markets as the nation previously mandated that firms looking to operate within China must have a 50-50 split with a domestic entity.
FDI in China from Tesla ought to be encouraged, the company wholly operates under the few sectors that the nation allows foreign entities to engage in: high technology and sustainable energy. China has a growing middle class and stated government preference on sustainability and more environmentally friendly measures. This offers an exceptionally lucrative opportunity for Tesla to expand operations in China in not only vehicles but also power storage
102477 china stat yearbook 2020, 2055456
How is your country integrated with surrounding countries? -DW
Discuss your country’s currency and exchange rate. -DW
⦁ Compare and contrast your country to the USA across a broad base of measurements.
⦁ You must have at least one interview with a person from this company. -JX The person I interviewed works at the Tesla Fermont Factory based in Fremont, California.
Questions and responses: What do you know about Tesla’s Gigafactory in shanghai? I know it is a Gigafactory, so they want to be sustainable and produce batteries, cars, and power walls I assume. What are some opinions you have of the Gigafactory? I like how the factory is in the city area. It’s a good location mine and Shanghai’s, and it will create a lot of jobs for people. Do you think tesla’s trucks and cars will do well in the Chinese market? Well, they do really well in the U.S. so I think they’ll do really well in the Chinese market, and I think that the semitrucks especially will do well in their market too. With the factory increasing the EV market in China, do you think it will be environmentally good for China? I believe so, it’s more renewable energy being used instead of gas, and less vehicle population.
⦁ You must have at least one interview with someone from your country. You may attach this interview as a video or you may make a transcript of the questions and answers from the interview. -JX I interviewed my parents who have a home in Shanghai.
What do you know about Tesla’s Gigafactory in Shanghai, with it being your home? We’ve read news about Tesla building a factory in Pudong which is just on the other side of the bridge of our house in Yangpu. Other than reading news about it nothing much. What are your opinions of the factory being located so close to your home? Nothing much, it might increase the amount of people taking rail transits to work, making it more crowded, but we aren’t in town much, we’re mostly traveling. Are there any pros or cons to the factory being located where it is? We think that it’ll be good for the local people, since it creates more job opportunities, hopefully the factory doesn’t add to pollution. Would you be interested in buying a Tesla vehicle with the factory producing more available EVs in the market? We probably wound’t buy a car with all the other available transportation options, and when we’re traveling, we like to take the bullet train rather than by car because they’re more comfortable.
⦁ If you decide to manufacture in the country, describe the factors you have considered and why you made the choice you did. -JJ
Considering important factors for manufacturing in a new country is very important, for peaceful operations. Therefore, if the manufacturing endeavors are to be done in China, the following factors should be considered; the government regulations concerning manufacturing operations, in terms of registration and licensing of a manufacturing operation, as this will help create a good relationship between an investor and the local government, another factor is the China’s production cost, as it will help determine the success of the manufacturing operations (Collins, 2021). The location is also great consideration for setting up a manufacturing operation, such that it’s not too far from resources. The market and the cost of manufacturing in China should be known for easy estimation and effective planning and preparation.
⦁ How do you get to your country? How long does it take and how much does a typical plane ticket cost? How much is business class? Would you recommend business class ticket? Why or why not? Is a visa required to visit your country? Discuss the procedures. -JJ
To reach China, traveling through the air would be effective since less time will be used. The flying time would be approximately 15 hours, with a typical round-trip plane ticket of $ 865 and a business round-trip plane ticket costing approximately $ 3000 (Advisor, 2022). Therefore, though it’s costly, I would recommend the business class ticket for comfort throughout the flight travel distance to China. Of importance to note is that a visa is a crucial requirement to go to China and can be applied through the Chinese embassy. And the procedure to get a Chinese visa will be as follows; choosing a business visa, since the main reason for going to China is to undertake manufacturing endeavors, then preparation of all documents such as passports, business cover letters, proof of state residency, authorization letter and visa application letter is crucial (Advisor, 2022), after that submission of the application follows, then payment, and finally, the visa is ready.
⦁ Describe current events germane to your country and your decisions around how to engage in business in this country.
Questions Required on Company Report
⦁ What is the extent of the company’s current out of US activities? Describe in detail. – Donna (DB)
According to the Tesla SEC 10-K report, Tesla has many properties in North America, Europe, and Asia for manufacturing and assembly, warehousing, engineering, retail, and service locations. These properties include 38 retail stores in Germany, 31 retail stores in China, 29 retail stores in the United Kingdom, 19 retail stores in France, 19 retail stores in Switzerland, 12 retail stores in the Netherlands, 14 retail stores in Canada, and about 16 retail stores in Norway. (Keesee, 2021) In addition to the retail stores, Tesla produces vehicles in its Gigafactory in Shanghai, 100 service centers in 38 countries, 30,000 plus Superchargers in 53 countries, and 14,000 destination charging stations. (Tesla, 2022) Tesla also has a supercharging network that consists of fast chargers built along highways and cities. They primarily lease their retail stores except for some manufacturing facilities. The following table sets forth the location of our primary owned and leased manufacturing facilities. (U.S. Securities and Exchange Commission, 2021)
Primary Manufacturing Facilities Location Owned or Leased
Gigafactory Texas Austin, Texas Owned
Fremont Factory Fremont, California Owned
Gigafactory Nevada Sparks, Nevada Owned
Gigafactory Berlin Grunheide, Germany Owned
Gigafactory Shanghai Shanghai, China *
Gigafactory New York Buffalo, New York Leased
* Tesla owns the building, and the land use rights with an initial term of 50 years. The land use rights are treated as operating lease right-of-use assets.
Keesee, P. (2021, October 22). How Many Tesla Stores are there Around the World? Retrieved from Optiwatt: https://getoptiwatt.com/blog/how-many-tesla-stores-are-there-around-the-world#:~:text=Apart%20from%20having%20160%20stores,about%2016%20stores%20in%20Norway
Tesla. (2022). Find Us. Retrieved from Tesla: https://www.tesla.com/findus/list
U.S. Securities and Exchange Commission. (2021). Form 10-K. Washington, D.C.: SEC.
⦁ Company history – Donna (DB)
Tesla Motors is a Silicon Valley project started in 2003 by Marc Tarpenning and Martin Eberhard. Other co-founders included JB Straubel, Ian Wright, and Elon Musk. (Lee, 2020) Initially, Tesla’s mission was to produce electric automobiles for appeal, aesthetic beauty, and enhanced performances rather than ultimate costs (Hettich & Muller-Stewens, 2017). Elon Musk entered Tesla in 2004, first as an investor and then as chairman in 2004. (Coufana, n.d.) Musk’s entrance boosted the firm owing to his vast entrepreneurial exposure from endeavors including SolarCity, Space X, and PayPal. In 2007, Mr. Eberhard served as CEO until August. Then Ze’ev Drori, an Israeli engineer and businessman, was named CEO and officially took the company’s reins in December 2007. Drori brought Tesla’s first car, the Roadster to market by the first quarter of 2008, priced at $109,000. The Roadster emerged with milestone achievements for over 390km (245 miles) for a single charge. The car’s production cost would come under sharp scrutiny after rising from $65,000 to $140,000. As a result, the company would incur losses before producing commercial units leading to the dismissal of Eberhard and Tarpenning (leading software, electronic and electrical systems (Bilbeisi & Moulare, 2017). Elon Musk became CEO in 2008. Tesla unveiled its first electric sedan, the Model S, in March 2009, and by May 2009, it had already surpassed 1,000 reservations. Tesla delivered the Model S to its first customers on June 22, 2012. “It became the best car in its class in every category” (Radanovic, 2022) by combining safety, performance, and efficiency. It also had the most extended “range of any electric vehicle, over-the-air software updates that make it better over time, and a record 0-60 mph acceleration time of 2.28 seconds.” (Moving Exponentially, Tesla Electric Cars, n.d.) Musk further demonstrated his commitment to advancing the adoption of electric cars when he open-sourced Tesla’s patents in 2014. Tesla also announced its plans to build its giant battery factory, dubbed the Gigafactory, in 2014. Then in October 2014, Elon Musk unveiled Tesla’s semi-autonomous self-driving system called Autopilot, which suffered from problems with a fatal crash in 2016. “In 2015, Tesla expanded its product line with Model X,” (Moving Exponentially, Tesla Electric Cars, n.d.) a safe, quick sport utility vehicle with 5-star safety ratings across every category from the National Highway Traffic Safety Administration. Elon Musk introduced the Model 3 as part of his “Secret Master Plan” in March 2016. It was to be Tesla’s first mass-market car. Also, in 2016 Tesla bought a German engineering company for automated auto assembly. In 2017 Telsamotors was renamed, Tesla. Soon after, Tesla unveiled the Tesla Semi, “designed to save owners at least $200,000 over a million miles based on fuel costs alone.” (Tesla, 2022) In Sept 2018, The SEC sued Elon Musk because he made false and misleading statements about taking Tesla private. The Shanghai factory broke ground in Jan 2019. The Tesla Model Y, a mid-size sport utility vehicle, was announced, and the Cybertruck was unveiled in 2019. The Cybertruck is expected to have better utility than a traditional truck and more performance than a sports car. (Tesla, 2022) In June 2020: The Tesla Model S will become the first EV to get a 400-mile range rated by the EPA. (Lee, 2020)
Tesla. (2022). About Tesla. Retrieved from Tesla: https://www.tesla.com/about
Lee, C. T. (2020, June 29). Tesla celebrates its 10th year as a public company today. Here are the most important moments in its history. Retrieved from Business Insider: https://www.businessinsider.com/most-important-moments-tesla-history-2017-2
Bilbeisi, K. M., & Moulare, K. (2017). Tesla: A successful entrepreneurship strategy. Morrow, GA: Clayton State University.
Dai, R. (2020). The Analysis of Tesla’s Competitive Strategy for the Chinese Market.
Hettich, D. E., & Muller-Stewens, P. G. (2017). Tesla Motors’ business model configuration. In B. d. Wit, Strategy: An International Perspective, 6th Edition (pp. 759-774). Hampshire: Cengage Learning EMEA.
Radanovic, G. (2022, February 22). How Does Tesla Make Money? Retrieved from Benzinga.com: https://www.benzinga.com/money/how-does-tesla-make-money/
Moving Exponentially, Tesla Electric Cars. (n.d.). Retrieved from Robinscars.Wordpress.com: https://robinscars.wordpress.com/tesla-electric-cars/
⦁ Company code of ethics
Tesla always strives to conduct business with integrity and in compliance with all laws and regulations where we operate. This applies to every business decision in every area of the company. We achieve this through our guiding principles : We Think Before We Act Demonstrating trust in day-to-day work. We Treat Everyone with Respect Creating and maintaining a respectful and inclusive workplace. We Protect Tesla Information and Assets Upholding responsible data handling practices and transparency. We Do Business with Integrity Doing the right thing, no matter who is watching and even when it’s hard. (Tesla, 2021)
Tesla. (2021). Tesla Supplies Code of Business and Ethics. Tesla.com.
⦁ Company senior leadership/organization Arturo (AR)
Elon Musk is the co-founder, chief executive officer (CEO), director, product architect, and unquestionably the primary driving force at Tesla Motors. Musk, a native of South Africa, is also the founder, CEO, and chief technology officer (CTO) of SpaceX, and chair of SolarCity following Tesla’s 2016 acquisition of the key solar power firm.
Having just assumed the position of Chief Financial Officer as of March 2019, Zachary J. Kirkhorn succeeded Deepak Ahuja as CFO, who brought more than 20 years of global automotive finance experience to the role. Previously, Kirkhorn assumed various finance positions within Tesla, where he’s worked since 2010. Before becoming CFO, Zach was most recently Vice President, Finance, Financial Planning and Business Operations from December 2018 to March 2019. Kirkhorn holds degrees in economics and mechanical engineering and applied mechanics from the University of Pennsylvania and an MBA from Harvard University.
Jerome Guillen is Tesla’s President of Automotive, a role he’s helmed since September 2018. However, Guillen is no stranger to Tesla–he’s been at the company since 2007 and has had various leadership roles, including Vice President, Trucks and Other Programs as well as Vice President, Worldwide Sales & Service. In fact, Guillen was the Model S Program Director and has worked generally in the automotive industry for most of his career. Guillen holds a PhD in mechanical engineering from the University of Michigan, including a dual degree in energy technologies and mechanical engineering from Escuela Tecnica Superior de Ingenieros Industriales and Ecole Nationale Superieure de Techniques Avancees, respectively.
Andrew Baglino succeeded Jeffrey Brian “JB” Straubel in October 2019, who previously held the position of Chief Technology Officer. In contrast, Baglino took on a majority of Straubel’s responsibilities but his title is Senior Vice President, Powertrain and Energy Engineering. He has been at Tesla since March 2006, and holds a B.S. in electrical engineering from Stanford University.
Jeffrey Brian Straubel, more commonly referred to as “JB,” was the 15-year tenured chief technology officer of Tesla Motors, as well as a member of the company’s founding team. As of July 2019, Musk announced that Straubel would move to a “senior advisor” role. In his role at Tesla, Straubel oversaw all of the technical and engineering designs for all of Tesla’s vehicles. He was also responsible for overseeing research and development (R&D), evaluating new technology and designs, due diligence with key vendors, and validating systems testing, among other responsibilities.
Straubel is also a regular lecturer and guest presenter at Stanford University, his alma mater, where he teaches an energy storage integration class as part of the school’s atmosphere and energy program.
⦁ Company financial situation and performance Donna (DB)
Tesla generates revenue from car sales, solar energy generation and storage products, and servicing used Tesla cars. Tesla’s additional products and expansion into China resulted in a $5.5 billion profit on $53.8 billion sales in 2021. According to the Benzinga analyst, in the 4th quarter of “2021, Tesla reported revenue of $17.7 billion, a 65% increase year over year. Tesla delivered 936,172 cars in 2021, an 87% increase on 499,647 cars in 2020. It delivered 308,600 cars in the 4th quarter of 2021. Model 3 and Model Y are Tesla’s biggest revenue generators. Model 3 was Europe’s best-selling car in September 2021. Model X and Model S also generate Tesla revenue.”
Tesla’s energy solution earnings also have tremendous upside potential. The revenue from energy generation and energy storage products results from its desire to create a sustainable energy ecosystem. Tesla’s Powerwall, Powerpack, and Solar Roof production have enabled homeowners and businesses to manage renewable energy generation, consumption, and storage. “Tesla’s energy revenue was $2.789 billion in 2021. The cost of the energy revenue was $2.918 billion, resulting in a $129 million loss. But the company increased annual revenue by 40%, earning $2 billion in 2020. Another revenue stream for Tesla is servicing old Tesla cars. During Q3 2021, Tesla suffered a 39% sales drop in the U.S.” (Radanovic, 2022) However, the services and other charges revenue grew by 68% — from $326 million a year earlier to $548 million. Services revenue is from vehicle repairs and sales of parts and used cars. Services revenue grew 91% to $1.65 billion from a year earlier in the beginning of 2019.
According to Morning Star’s analyst report from Jan 27, 2022, Telsa is in good financial health. Tesla is currently the market leader status of Electronic Vehicles (EVs). They are moving from a niche luxury automaker to mass consumer adoption. The move will involve massive capacity expansion to increase the number of vehicles it can produce. Tesla reinvests 5% of its sales revenues in research and development, focusing on improving its market-leading technology and reducing its manufacturing costs. The Analyst states that Tesla has strong intangible assets of its substantial brand cachet as a luxury automaker commanding premium pricing. Their brand competitive advantage should not end soon because the company keeps innovating to stay ahead of startup and established competitors. By focusing on the luxury auto market first, Tesla created tremendous media publicity for the company that reaches beyond its customers. Strong consumer demand was made for vehicles at lower price points, such as the Model 3 and Model Y. A Cybertruck, sedan, and SUV will be known as the $25,000 vehicles. Tesla has accomplished a lot with little to no spending on advertising, rare for a consumer brand. Tesla’s proprietary technology contributes to its intangible asset-driven competitive advantage. Since launching the Model S in 2012, Tesla has been the industry leader in electric vehicles, producing the best EVs. The company invests nearly 6% of sales in R&D to maintain its best-in-class range. Tesla is already well ahead of the competition on a miles per kilowatt-hour basis and continues to improve other vehicle specs such as power. The Analyst also thinks that Tesla benefits from a cost advantage in electric vehicles production to its manufacturing scale.
“Tesla’s total vehicle volume has grown from just over 100,000 in 2017 to nearly 600,000. During the same period, the company’s average cost of goods sold per vehicle has fallen 55%, from $84,000 to under $38,000. Gross profit margins have expanded from 23% to slightly under 27%.” (Fox, 2021) The majority of COGS decline is from focusing on reducing manufacturing costs due to scale. Legacy automakers are gradually transitioning to electric vehicle production from internal combustion engines. However, we expect they will be saddled with legacy internal combustion engine (ICE) costs for a long time. Even as legacy automakers begin to produce more EVs, we expect Tesla to continue to have lower prices. It has outlined a plan to further reduce battery cell costs by 56% over the next several years. Incumbent automakers may take years to catch up to Tesla because Tesla’s price per vehicle is set to fall. It is thought that Tesla’s combination of intangible assets and cost advantage will persist in the future and allowing the generation of excess returns on capital. The Morning Star Analyst thinks Tesla has the potential to out-earn its cost of capital over at least the next 20 years.
However, the second 10-year period carries significant uncertainty because of the advancement of autonomous vehicle technologies that could transform how consumers use vehicles. Tesla has tremendous uncertainties. The mass-market consumers might not adopt the new powertrain technology due to higher costs and worse function (range, recharge time, and availability of charging). Other powertrain technologies could also disrupt EVs. The automotive market is highly cyclical and subject to sharp demand declines based on economic conditions. As a market leader in EVs, Tesla is subject to growing competition from traditional automakers and new entrants. With more EV choices, consumers may view Tesla less favorably. The firm is investing heavily in capacity expansions that risk delays and cost overruns. The company is also investing in R&D in an attempt to maintain its technological advantage with no guarantee that these investments will bear fruit. Tesla’s CEO owns about 21% of its stock and uses it as collateral for personal loans, which raises the risk of a large sale to repay debt.
Tesla faces several environmental, social, and governance risks. As an automaker, Tesla is subject to potential product defects resulting in recalls, including its autonomous driving software. We see a moderate probability and moderate impact should this occur. Other risks involve human capital, namely employee retention. If Tesla cannot retain key employees, such as CEO Elon Musk, its favorable brand image could decline. Should the company not be able to maintain production line employees, it could see delays. We see a low probability but moderate materiality for both of these risks.
Tesla aspires to increase its EV volume from roughly 500,000 units in 2020 to 20 million by 2030. To do so, the company is investing in the build-out of new factories worldwide, especially in the United States and European Union. Tesla makes its batteries to reduce costs, with plans to increase its battery cell production from an annual capacity of 100 gigawatt-hours in 2022 to 3 terawatt-hours by 2030. The structural design of the EV will include the new battery design. Tesla’s battery improvements aim to enable a 56% reduction in the cost per kWh, a 54% range increase, and a 69% reduction in investment per GWh. Tesla does not pay a dividend and does not repurchase shares. Instead, it has used the capital markets to issue stock, most recently at value-accretive levels. Tesla is investing heavily in expanding its vehicle and battery production capacity. The Analyst thinks the best use of capital is internal reinvestment to fund organic growth rather than shareholder distribution. We don’t think Tesla should pay a dividend or repurchase shares anytime soon. (Seth Goldstein, 2022)
Mergent . (2022). Tesla Inc Mergent Report. FTSE Russell.
Seth Goldstein, C. S. (2022). Morningstar Equity Analyst Report Tesla Inc. Morningstar.
Radanovic, G. (2022, February 22). How Does Tesla Make Money? Retrieved from Benzinga.com: https://www.benzinga.com/money/how-does-tesla-make-money/
Fox, E. (2021, July 3). Tesla Receives Valuation Boost on Improved Profit Outlook from Morningstar. Retrieved from Tesmanian: https://www.tesmanian.com/blogs/tesmanian-blog/tesla-received-boost-of-valuation-on-an-improved-profit-outlook-from-morningstar
Mergent Analyst Report
Tesla Inc is currently trading at $809.87 which is 15.9% below its 50 day moving average price of $963.55 and 3.1% below its 200 day moving average price of $835.43.
TSLA is currently 34.2% below its 52-week high price of $1,229.91 and is 43.8% above its 52-week low price of $563.00. Over the past 52- weeks, TSLA is up 12.7% while on a calendar year-to date basis it is down 23.4%.
The Relative Strength Index (RSI) indicator for TSLA is currently 39.03. An RSI value of 70 and above is considered overbought and 30 and below oversold.
Tesla Inc’s cumulative annualized revenue growth rate over the charted period is 47.2%. This compares to revenue growth of 70.7% last fiscal year and cumulatative annualized growth of 35.9% over the past 3 years.
Tesla Inc’s cumulative annualized EPS growth rate over the charted period is 1.0%. This compares to EPS growth of 680.2% last fiscal year and cumulatative annualized growth of 999.9% over the past 3 years.
Tesla Inc’s net profit margin of 10.2% is 14.0% above the period’s mean net margin of -3.8%. During the charted period, the observed net profit margin high and low were 10.2% and -18.8% respectively.
Tesla Inc’s return on equity of 18.6% is 31.6% above the period’s mean return on equity of -13.0%. During the charted period, the observed ROE high and low were 18.6% and -59.6% respectively.
Tesla Inc is trading at 99.90 times its EPS generated during the latest 12 months. This multiple is equal to the historically observed median of 99.90, while high and low observations have been 99.90 and 99.90. Tesla Inc is trading at a Price to Sales ratio of 16.97 based on sales generated during the latest 12 months. This ratio is above the historically observed median ratio of 5.21, while high and low observations have been 30.00 and 1.44.
Tesla Inc is trading at a Price to Book ratio of 27.71 based on book value at the latest fiscal period end. This ratio is above the historically observed median of 13.08, while high and low observations have been 45.35 and 6.63.
Tesla Inc has a Free Cash Flow Yield of 0.55% based on free cash flow generated during the latest 12 months. This value is above the historically observed median yield of 0.32%, while high and low observations have been 4.23 and 0.00. (Mergent , 2022)
Mergent . (2022). Tesla Inc Mergent Report. FTSE Russell.
Seth Goldstein, C. S. (2022). Morningstar Equity Analyst Report Tesla Inc. Morningstar.
⦁ Which of the company products have you chosen to take internationally and why? ?? Trucks in the China market??
⦁ What are the challenges facing the company? Arturo AR
Tesla is currently facing many challenges. One of the challenges is the imposition of import taxes. The Indian government levies a 60% import tax on electric vehicles priced $40,000 or less, and 100% on those priced above $40,000. In comparison, Tesla cars start at $44,690 (approx. ₹33,41,780) in the US, meaning Tesla’s cars will face a 100% import tax in India, hampering the company’s sales. While Tesla has been requesting for a reduction in import duties for some time now, Indian companies like Tata Motors have opposed such a move as it would incentivize imports and go against the country’s plans of boosting local electric vehicle manufacturing. (Jain, 2022) The other big issue Tesla is facing, like everyone else, is supply chain. The all-new vehicle will resurrect the name of Tesla’s first-ever car and was originally unveiled as a concept car in 2017. Its release date has been pushed back several times over the years from 2021 into 2023. The super car is expected to have a starting price of about $200,000. A Tesla spokesperson did not respond to a request for comment from Insider. Earlier this year, Musk said pandemic supply-chain issues and the global microchip shortage had resulted in “insane difficulties” for Tesla.”We’ve had some of the most difficult supply-chain challenges that we’ve ever experienced in the life of Tesla,” he said during an earnings call in April.Port delays have made it difficult for Tesla and numerous other major companies to gather and ship supplies. On Saturday, delays at two of the country’s largest ports in southern California hit an all-time record as 44 ships waited to dock.(Kay, 2021)
⦁ Company strengths and weaknesses. AR Arturo
1. A Top Employer Company
Any organization is as good as it employs. In the case of Tesla Inc., it is one of the key factors for the company’s remarkable success. Wall Street Journal reports that Tesla has emerged as an ideal company for employees due to its diversity and innovation-encouraging culture. It has recently been listed as one of the ideal places to work, attracting young jobseekers with fresh talents and energy. The company has also been featured in Forbes’ ‘America’s Best Employer 2021’.
2. Most Valuable Automotive Company
Despite its issues, Tesla’s sales revenue was $53.8 Billion with 936,172 cars delivered to customers in fiscal year 2021. The increase in the number of deliveries and its profitability of $5.6 Billion pushed the company’s market capitalization to over $1 Trillion and surpassed the market cap of top 5 automaker (Toyota, Volkswagen, Daimler, Ford and General Motor) combined.
Tesla has now become the world’s most valuable automaker by market value. 
3. Best in-class Electric Cars
Tesla has left behind every other brand in the race of the finest electric cars. When compared by their range, Tesla’s electric cars have proven to be the best covering maximum distances. The recent comparison shows that Tesla occupies the top three places in terms of range. The Tesla Model S will get you the furthest – traveling up to 600 kilometers on a single battery charge. The nearest another brand has got is the Opel Ampera, with a range of 520 kilometers.
1. Manufacturing Complications
The higher standard of innovation, the greater will be mechanical complications and production risk factor. Tesla faces continuous launch, manufacturing and production ramp delays while launching their new vehicles and other products. For example, Tesla faced endless manufacturing challenges when they were about to launch Model X, which lead to constant delays for distribution. Similarly, the company went through extreme troubles while manufacturing Model X’s battery module assembly line at Gigafactory 1.
2. Unable to meet demand might affect brand value
Due to highly experimenting and complicated procedures, Tesla’ might face an unbalanced supply and demand, unable to meet the production ramp in the future.
3. Lack of High Volume Production
There is no doubt that Tesla is the pioneer of actual energy-saving cars. But it has failed to produce high volumes of automobiles for any of its models. Even now, as the company plans to manufacture Model 3 vehicles at high volume, it faces issues in terms of production cost and management resources and space expansion in Gigafactory 1.
Required Sources for Company Report:
⦁ Annual Report – FORM 10-K 2021 Annual Report https://www.sec.gov/Archives/edgar/data/1318605/000095017022000796/tsla-20211231.htm#item_1_business
⦁ Product information – Singapore Model 3 owners manual https://www.tesla.com/ownersmanual/model3/en_sg/
⦁ Company web-site information – https://www.tesla.com/ and https://www.teslarati.com/
⦁ Trade journals and magazine articles Uploaded to Sharepoint
⦁ Interview with appropriate Company Employee – CNN interview with Elon Musk regarding China – Uploaded in documents https://www.cnn.com/2021/03/24/tech/elon-musk-china-intl-hnk/index.html
⦁ Analyst reports Morningstar ⦁ https://ar.morningstar.com/mirc/equity/sal.aspx?s=0P0000OQN8#Morningstar_Report Go to UAB Library – Databases and log in using blazerid and password.
Summary of Final Paper
Country Report - 8 pages exclusive of charts, graphs and maps
Company and Product Report - 8 pages exclusive of charts, graphs, product literature and maps
Recommendations Report - 4 pages exclusive of charts, graphs, and maps
Total Report Size - 20 pages exclusive of charts, graphs, and maps.
If you are not working on it, Please start ASAP.
some useful website for your project:
Country Report Country Report Country Report Country Report Country Report Country Report Country Report Country Report Country Report Country Report Country Report Country Report Country Report Country Report Country Report Country Report Country Report Country Report Country Report v
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