The effectiveness of the arrangement was a success from both Tesla’s viewpoint and the state of Nevada. As a team our assessment is that both parties came away from the negotiation process having achieved a positive outlook on their investment. In Tesla's case they are now able to construct and operate with large tax breaks while also strategically locating themselves in an area where they can also construct their lithium mine. The state of Nevada on the other hand will receive an influx of around 16,000 new indirect jobs helping stimulate their local economy. The contract also addresses some important concerns the state may have about its positive returns. An example of this is the Nevada Residency Requirement outlined in the contract under the continuing requirements applicable to the lead participant. This states that at least 50% of the employees engaged in the construction and 50% of the employees engaged at the project must be Nevada residents. By addressing this in the contract the state of Nevada ensures that the return aids the state and it’s residents. The contract also does a nice job of ensuring Include clawback (recapture) provisions in the final contract with Tesla. Nevada legislators should include clawback provisions in the contract that would require Tesla to pay back some or all …show more content…
This commission (comprised of citizens, nonprofits, legislative auditors, and tax policy experts) would be charged with monitoring the progress of Tesla, tracking the incentives and abatements schedule, ensuring that performance targets are met, evaluating Tesla’s local and state economic and fiscal impacts, assessing the cost-effectiveness of the incentive program, and measuring actual versus expected performance. The committee would be required to report to the Governor and Nevada Legislature once a
Met with PO for 30 minutes individule session. The session was focused on reviewing treatment progress and discuss continuing care plan.
The success or failure of the project all depends on getting a total of $105 billion in funding for this project to be completed, stated by the California state auditor. The problem is, where if the funding going to come from. Gov. Jerry Brown is still pushing on to start the Central Valley construction at the end of 2012, not know where the extra money will come from he is forging ahead. Gov. Brown argues, “That the bullet train represents a bold vision of progress for the state and will create jobs, accommodate future growth and help the environment” (Weikel, 2012). Backers note that voters approved the project and billions in state funding in 2008. Critics, however, note that recent polls show that voters way of thinking in the state has shifted away from support for the project. So the question is what the real state of the California bullet train? I surely hope our Commander and Chief sit down with
Tesla`s current objectives include creating a high demand for electric vehicles which ultimately will raise sales. This will be achieved as more awareness on the harm gasoline emissions cause on the environment is shown, and knowledge on electrical powered cars is gained. Tesla also plans to create customer loyalty with current customers and create customer referrals. Tesla will achieve this by continuing to have regular customer events, such as show rooms which display their new technology.
There is also a bad blood between the two companies. When Tesla was still at its
Electric cars over the last several years have been a controversial topic. Companies have ran into issues regarding the batteries, pricing, and clearly competition with gas fueled vehicles. I noticed Tesla Motors a few years ago and instantly fell in love with their electric vehicles. Tesla managed to keep a very clean look with a sports car feel to their vehicles, and they are currently working on their new battery which is expected to last much longer. The price of their vehicles at the moment are priced higher than most average families can afford, but Tesla announced they are releasing a more affordable vehicle in 2017. Throughout the existence of Tesla they have made it clear they will not settle with just making vehicles that are in compliance with the laws set in place, their company will strive to make the best vehicles they can.
Opportunity: For the overall electric automotive industry and Tesla, they should improve its financial performance through government incentives to alleviate the problem of carbon emissions from its car models.
Rarity: Tesla Motors is known to have a differentiated product over other firms in the sense that it sells electric based cars. It is the only successfully running electric sports cars in the U.S. At the beginning sales were not enough to sustain the business but tesla motors proved it self after introducing the new model, Tesla Roadster 2. There is only few car manufacturing companies trying to enter this industry which makes Tesla Motors have a competitive advantage.
Reed McManus is a senior editor from The Sierra Club, a respected non-profit organization based in the United States . Reed wrote hundreds of articles for nearly 30 years. In this particular article, he writes about his Tesla experience and expertise. At one point, he actually discusses an argument against what he is writing about, the Tesla and all other electric vehicles, by pointing out that they have limited range, slow recharging times when compared to a gasoline refill, and charging stations are not yet a norm in the United States. The author then produces a counterargument, explaining forty miles per day is the average a driver drives a day, which can be easily accomplished on all major electric cars on the market. He also adds that fast-charging stations can charge Teslas to 80% of its maximum battery from empty in a mere 30 minutes. There is a nice mix of qualitative and quantitative information here with a first-hand experience with Tesla and various counter-arguments that can be employed to support the cost and convenience of the EVs in the paper.
Harryson, S. and Keller, S. (2014). Tesla Motors Case II: From Technology Start up to Commercialization Vehicle.CIEL. [online] Available at: http://ciel-lab.dk/wp-content/uploads/2013/04/Case_Tesla-Motors-Part-II.pdf [Accessed 1 April. 2014]
I reviewed your memorandum to Governor Jerry Brown, outlining a “Plan to Increase Demand for Electric Vehicles.” Your message to the California government is clear about its intent. You offer solid arguments. You urge the government to develop electric vehicles to improve air quality in California, and clearly identify the burden to develop and market the electric car within the private sector. To improve your paper, you could strengthen your arguments with more concrete support, develop more seamless transitions, and include associated counter-arguments.
One of the main political factors facing Tesla in the US are the incentives offered by different states and cities to Tesla owners. They must co-ordinate with these policy makers and inform the consumer. In China, the key political factor is that “the Chinese government wants to put around 5 million electric or plug-in hybrid vehicles on its roads by 2020, but to date reports have confirmed that there are a mere 70,000 electric vehicles plying on China’s roads. In order to promote EV sales, the government has set a target that 30% of government vehicles purchased by 2016 should be EVs. To reach the target set for 2020, the Chinese government is ready to fund nearly $16 billion to build electric charging stations. To further promote EVs among Chinese car buyers, the government is looking to impose a new tax on gasoline engines and has renewed the private-buyer subsidies for electric-powered vehicles for another three years.” (GuruFocus. 2014.
This paper explores the merger of Tesla and SolarCity. Tesla is the most successful electric car company and has won multiple awards for its’s product offerings. SolarCity is the largest residential and commercial solar installer in the United States. Tesla is a successful car company but is still plagued with financial concerns due to its upcoming mass market car, the Model 3, and its battery plant, the Gigafactory. SolarCity has its own financial woes as last year it posted revenues of just $1.5 billion while amassing $3 billion in debt. These financial troubles have investors worried. Elon Musk, CEO of Tesla and Chairman of SolarCity, believes that by leveraging SolarCity’s installation network and Tesla’s global retail footprint, that the merger will create significant value for its shareholders. Synergies of the merger will allow Tesla to achieve a competitive advantage and lead the way in clean energy product innovation much in the way Tesla has done with electric cars. Investors and analyst are also worried about corporate governance concerns as Elon Musk is the CEO of Tesla as well as the chairman of SolarCity. Lyndon Rive, SolarCity CEO, is also the cousin of Musk. Time will tell if Tesla and SolarCity can successfully merge and create the world’s first vertically integrated energy company.
The literature reviewed for this assignment comes from information resources ranging from academic journals, internal reports, financial statements, and Tesla’s Form 10-K 2016. The information ranges in date from 2015 – 2017.
Tesla Motors Incorporated, an American company that designs, produces, and sells electric vehicles and their electric components, has become one of the fastest growing car companies in recent history. The company’s main goal was to start creating electric vehicles that were accessible and affordable to the public. Founded in 2003 and taking off successfully by 2009, Tesla Motors started selling the first mass-produced vehicle to use lithium-ion battery cells and hold a range of greater than 200 miles on just one charge. Along with building their own electric vehicle models, Tesla also builds electric powertrain components for vehicles from other automakers including cars such as the Toyota RAV4 electric vehicle. Tesla has begun to maximize
Two parameters define Tesla’s industry competitive environment: what Tesla is today and what Tesla hopes to become in the near future. Today Tesla delivers an EV in the high-end luxury market ($70k+), but plans to deliver an affordable ($35K) small sized sedan in the next few years (Kaufman, 2015). The differences between Tesla’s current and future plans affect the threats and opportunities for potential entrants, industry competitors, and buyers in the near term and long term.