Case Study

TESLA'S ELECTRIC
CAR REVOLUTION
(MODEL S)
Benjamin Issac Binu :– Group 5
Introduction
■ Tesla, a company specializing in the design, manufacturing, and sale of electric vehicles,
solar panels, batteries, and other sustainable energy-related products, is driven by the
mission to expedite the global shift towards sustainable energy. Established in 2003 by a
group of engineers, Tesla aimed to showcase that electric vehicles could surpass gasoline
cars in terms of performance and enjoyment. Recognized for its groundbreaking products
and services, Tesla, led by visionary CEO Elon Musk, has become an industry leader,
operating six vertically integrated factories across three continents with a workforce
exceeding 100,000.
■ Tesla's vision, expressed in the statement "to create the most compelling car company of
the 21st century by driving the world’s transition to electric vehicles," underscores the
company's commitment to transforming the automotive landscape. This vision is pursued
through the design of sustainable systems with massive scalability, ensuring the highest
environmental benefit achievable.
■ Tesla's vehicles, touted as some of the safest and most enjoyable globally, further
contribute to its leadership in sustainable transportation. The integration of clean energy
from Tesla's solar and battery products allows these vehicles to charge responsibly.
Additionally, Tesla maintains its innovative edge by regularly introducing new features
and enhancements through over-the-air software updates.
■ As a stalwart in the field of sustainable transportation, Tesla not only sets industry
standards but also endeavors to make a positive impact on the world. Through its
unwavering commitment to innovation, safety, and environmental responsibility, Tesla
continues to drive the global transition towards a more sustainable energy future.
■ Tesla's commitment to sustainable energy is encapsulated in its mission statement, which
emphasizes not only the development of electric vehicles but also a holistic approach to
energy solutions. By introducing electric cars into the mainstream, Tesla sought to address
one of the most significant contributors to environmental challenges—the reliance on
fossil fuels for transportation.
■ This project represents a pivotal step in achieving Tesla's mission as it challenges
preconceived notions about electric vehicles. It not only aspires to create an alternative
means of transportation but aims to make electric cars superior in every aspect—better,
quicker, and more enjoyable to drive than their gasoline counterparts. Through this
venture, Tesla positions itself at the forefront of the sustainable energy movement, using
innovation and technology to redefine the future of transportation.
Project Objectives
The objectives of Tesla in developing electric cars are crystal clear, aligning with the company's overarching mission
and commitment to sustainable energy. These objectives can be articulated as follows:

1. Reducing Dependence on Fossil Fuels:

- Tesla aims to fundamentally shift the paradigm of transportation by providing an alternative to traditional gasoline-
powered vehicles.
- The key objective is to diminish the world's dependence on fossil fuels, recognizing their finite nature and the
environmental challenges associated with their extraction and consumption.

2. Mitigating Environmental Impact:-

- Tesla's electric car project is driven by a commitment to environmental sustainability. The company acknowledges the
detrimental impact of traditional combustion engine vehicles on air quality and climate change.
- The primary objective is to introduce a cleaner and more sustainable mode of transportation, thereby reducing
greenhouse gas emissions and promoting a healthier environment.

3. Promoting Renewable Energy Integration:-

- Tesla's electric cars are designed to synergize with the company's broader ecosystem, which includes solar panels and
energy storage solutions. The objective is to create a holistic approach where electric cars not only reduce reliance on
fossil fuels but also actively contribute to a renewable energy ecosystem. This integration supports the vision of a
sustainable energy transition.
4. Setting Industry Standards:-
- Beyond creating an alternative, Tesla aspires to set new industry benchmarks for electric vehicles.
- The objective is to demonstrate that electric cars can outperform traditional gasoline vehicles in terms of
speed, efficiency, safety, and overall driving experience, thereby challenging preconceived notions and
accelerating the adoption of sustainable transportation.

5. Fostering Mass Adoption:-

- Tesla's electric car project is not just about creating high-end electric vehicles; it also aims to make electric
cars accessible to a broader consumer base.
- The objective is to foster mass adoption of electric vehicles by offering a range of models with varying price
points, ensuring that sustainable transportation becomes a viable choice for a more extensive demographic.

In essence, Tesla's objectives in developing electric cars extend beyond mere innovation; they are
rooted in a profound commitment to addressing global challenges related to energy sustainability,
environmental conservation, and the transformation of the automotive industry towards a cleaner and
more sustainable future.
Model S Pioneering Luxury Electric Cars
 In the development of the Tesla Model 3, various stakeholders played
crucial roles, including Tesla executives, engineers, suppliers, investors,
and customers. The identification of these stakeholders was pivotal in
ensuring a holistic approach to project management.
 Tesla executives, concerned with overall success and market expansion,
were engaged through regular briefings and strategic alignment sessions.
Engineers, the driving force behind technical innovation, participated in
forums and collaborative problem-solving sessions.
 Suppliers, integral to the supply chain, were involved through conferences
and transparent communication channels. Investors, seeking returns on
investment, received regular financial updates and participated in investor
meetings. Customers, the end-users, provided crucial input through
surveys, feedback sessions, and involvement in the design process.
 To manage expectations and engagement, Tesla implemented strategies
such as effective communication through digital platforms, alignment
workshops, transparent reporting, continuous feedback loops, and regular
review meetings.
 By incorporating these strategies, Tesla aimed to ensure that all
stakeholders were well-informed, engaged, and aligned with the objectives
of the Model 3 project, contributing to its overall success and market
impact.
Corporate Strategy
According to Logan (2011), Tesla Motors uses three pathways in order to enhance the number and the variety of its
available EVs to consumers: First, Tesla trades its EVs via both online channels and company owned showrooms.
Second, other auto manufacturers are able to get their own EVs to customers sooner by buying patented electric
powertrain components from Tesla Motors. Finally, Tesla Motors inspire other auto manufacturers by proving that
there is pent-up consumer demand for sportive performance and at the same time socially responsible vehicles. The
overall strategy of Tesla can be summed up in three steps. The first step was to introduce the Roadster model to the
market and consequently establish a keystone for EVs. This objective has already been accomplished. In
continuation, in 2012 the new “Model S” was introduced to the market, and it is targeted at middle to upper-middle
class consumers. Finally, by 2014 Tesla plans to produce and market a new model named “Model X”.

Transparent Reporting
Transparent reporting is a fundamental aspect of effective project management, and it played a pivotal role in
the development of the Tesla Model 3. To ensure transparency, Tesla consistently provided clear and accurate
reports on various facets of the project. Regular updates on project progress were disseminated, detailing
milestones achieved, timelines met, and any deviations from the original plan. Importantly, the reporting
included an honest account of challenges encountered during the development, addressing issues head-on
rather than concealing them.
This open communication about challenges was coupled with a comprehensive outline of mitigation strategies
employed, showcasing the proactive measures taken to overcome obstacles. Moreover, Tesla made it a point to
highlight successes achieved throughout the project, whether they were technological breakthroughs, successful
collaborations, or positive feedback from early stages of production. This transparent reporting strategy was
instrumental in maintaining trust and credibility among stakeholders, including executives, engineers, suppliers,
investors, and customers. By sharing both successes and challenges, Tesla demonstrated a commitment to
openness, enabling stakeholders to make informed decisions, fostering a culture of accountability, and
ultimately contributing to the overall success of the Model 3 project.

Innovation and Design

■ The development of the Tesla Model 3 exemplifies a meticulous approach to innovation and design, where
cutting-edge features were seamlessly integrated with a commitment to cost-effectiveness. Tesla's emphasis
on innovation is evident in the Model 3's electric powertrain, incorporating state-of-the-art battery
technology to provide an impressive range.
■ The minimalist yet futuristic design of the vehicle not only contributes to its aesthetic appeal but also
optimizes aerodynamics, enhancing energy efficiency. Moreover, the Model 3 introduced the Autopilot
feature, a groundbreaking advancement in autonomous driving technology, underscoring Tesla's
commitment to pushing the boundaries of innovation.
■ However, what sets the Model 3 apart is the strategic balance struck between innovation and cost-
effectiveness. Tesla successfully managed to make electric vehicles more accessible to a broader market
segment by optimizing production processes, utilizing economies of scale in the Gigafactories, and
implementing efficient supply chain strategies.
■ By prioritizing innovation that aligns with the company's mission and values, while also ensuring cost-
effectiveness, Tesla positioned the Model 3 as a trailblazer in the electric vehicle market, appealing to
a diverse consumer base and contributing to the broader adoption of sustainable transportation.

Manufacturing Process
■ The manufacturing process of the Tesla Model 3 stands as a testament to the company's commitment
to efficiency, scalability, and the pivotal role played by the Gigafactories. The manufacturing process
begins with raw materials sourced from a global supply chain, with a keen focus on sustainable and
environmentally responsible practices.
■ Once materials are received, the Gigafactories, strategically located across different continents, come
into play. These state-of-the-art facilities are designed to facilitate mass production, housing advanced
production lines and automated systems to ensure precision and speed in manufacturing.
■ The Gigafactories are instrumental in streamlining the production of key components, such as
batteries and electric powertrains, allowing for economies of scale and cost-effectiveness. Tesla's
emphasis on automation and advanced robotics within these factories contributes to the efficiency
of the overall manufacturing process.
■ By leveraging technology and innovative production techniques, Tesla has successfully
streamlined the production of the Model 3, ensuring not only efficiency in the manufacturing
cycle but also scalability to meet the increasing demand for electric vehicles worldwide. The
Gigafactories, as integral components of this streamlined process, exemplify Tesla's commitment
to revolutionizing the automotive industry through sustainable and efficient manufacturing
practices.
Production Challenges
■ The production ramp-up of the Tesla Model 3 was not without its challenges, and the company
underwent a reflective process to address these hurdles proactively. One significant challenge was
the sheer scale of demand for the Model 3, leading to production bottlenecks and delays.
■ Tesla's adaptive strategy involved a commitment to constant improvement and learning. The
company strategically invested in upgrading manufacturing technologies and processes to enhance
production efficiency.
■ Moreover, Tesla focused on workforce training and optimization to address skill gaps and ensure that
the production teams were equipped to handle the increased volume. Quality control emerged as
another critical challenge during the ramp-up phase.
■ Tesla implemented stringent quality assurance measures, incorporating real-time data analytics and
artificial intelligence to identify and rectify potential issues promptly. Tesla successfully navigated
the production challenges associated with the Model 3.
■ The company fostered a culture of continuous improvement, where feedback from the
production floor was actively sought and utilized to refine processes. By combining
technology-driven solutions, workforce development, and a commitment to continuous
improvement,
■ This adaptive approach not only allowed the company to meet the heightened demand
for electric vehicles but also contributed to the establishment of more robust and
scalable production processes for future models.

Customer Adoption
■ The success of the Tesla Model 3 is intricately tied to the company's adept handling of
customer adoption, incorporating feedback into continuous improvements and
managing the unprecedented demand for the electric vehicle.
■ Tesla has fostered a unique approach to customer engagement by actively seeking and
valuing customer feedback. The company established channels for direct
communication with customers, including surveys, feedback forms, and online forums.
■ This two-way communication has been integral to identifying areas of improvement in
the Model 3, whether they be related to features, user experience, or overall
performance.
Continuous Improvement
Continuous improvement has been a cornerstone of Tesla's ethos, and the lessons gleaned
from the Model 3 project have profoundly influenced subsequent Tesla models across
various facets, including manufacturing processes, design, and customer experience.
Manufacturing Processes:
■ Automation and Robotics: Insights from the Model 3's production challenges led to
refinements in automation and the increased use of robotics in manufacturing processes.
This has not only enhanced precision but also improved overall efficiency in subsequent
models.
■ Supply Chain Optimization: Lessons in managing a vast global supply chain for the
Model 3 have been applied to streamline and optimize supply chains for newer models.
This ensures a steady flow of materials, minimizing disruptions and delays.
Design:
■ Aerodynamics and Efficiency: The sleek design of the Model 3, aimed at optimizing
aerodynamics, has influenced the design philosophy of subsequent models. This focus
on efficiency not only contributes to enhanced performance but also extends the electric
range of Tesla vehicles.
■ Materials Innovation: Innovations in materials used in the Model 3, balancing strength
with weight, have informed the choice of materials in newer models, contributing to
improved durability and energy efficiency.
Customer Experience:
■ User Interface and Autopilot Features: Insights from user feedback on the Model 3's
user interface and Autopilot features have led to iterative improvements. Subsequent
models boast more intuitive interfaces and enhanced autonomous driving capabilities.
■ Charging Infrastructure: Lessons from the Model 3's global demand prompted an
expansion of the charging infrastructure. This ensures that customers of newer models
have access to a robust and growing network of charging stations.
■ Environmental Considerations: The Model 3's success underscored the significance
of sustainability. Tesla's commitment to reducing the environmental impact has been
amplified, leading to further innovations in battery technology and recycling initiatives
in newer models.
By presenting these continuous improvements, Tesla demonstrates a commitment to
learning from experience and a dedication to staying at the forefront of technological and
environmental innovation. The iterative refinement of manufacturing processes, design
elements, and customer experiences not only enhances the performance and appeal of each
subsequent model but also reinforces Tesla's position as a leader in the electric vehicle
Overview on Tesla Model 3 Project
The project management of the Tesla Model 3 stands as a testament to strategic vision and effective
execution. From the outset, Tesla articulated clear objectives, aiming to produce an affordable electric
car for mass-market adoption, and demonstrated a commitment to sustainability. Agile methodologies
facilitated adaptability in a rapidly evolving market, while the incorporation of cutting-edge features
like the Autopilot system showcased innovation. The efficient utilization of Gig factories for mass
production underscored strategic manufacturing prowess, setting industry benchmarks. Tesla's
customer-centric approach, actively incorporating feedback into continuous improvements, fostered a
loyal customer base. The company effectively managed the high demand for the Model 3 through
scalable production, efficient supply chain management, and transparent communication. Adaptive
strategies addressed challenges, reflecting Tesla's ability to learn from experiences. Overall, the
success of the Model 3 not only established Tesla as a leader in the electric vehicle market but also
influenced the broader automotive industry's approach to sustainable transportation, marking the
project as a resounding success in project management.