Tesla, Inc is a multinational automotive company of American origin dealing in vehicles and renewable energy. The Tesla company was established in 2003 by martin Eberhard, Marc Tarpenning, Wright, Musk, and Straubel (Matthews et al., 2020). The company is a public industry dealing in automotive and renewable energy. It is located in San Carlos, California, United States of America. In 2008, however, the company management was changed, and Elon Musk became the new chief executive officer (CEO). The geographical regions served include North America, Europe, East Asia, the Middle East, and Southeast Asia (Matthews et al., 2020). The company’s headquarters are at Tesla Road, Austin, Texas, United States.
The Tesla company serves a vast market offering various products and services. Primarily, the company deals in designing and manufacturing electric cars and trucks. Additionally, it produces renewable energy sources such as battery energy storage ranging from home to grid-scale and solar panels and roof tiles. On July 19, 2006, the company produced its first electric automobile called the Roadster. By June 2009, the company had amassed a net worth of $187 and produced 147 cars (Matthews et al., 2020).
Further products were made between 2010 and 2015 when they purchased a factory from Toyota, leading to the production of the Model S luxury sedan (Matthews et al., 2020). Essential vehicles from the industry include models 3, X, and Y, and as per Musk, the CEO, they will start producing Tesla Roadster’s second generation.
Financial performance and stakeholders are correlated aspects that define the success of a business. Performance is a primary measure of how effectively a company utilizes assets and generates profits. Stakeholders can significantly influence an industry’s finances by using their invested powers. Voting is such a way that they can contribute to the company. Each stakeholder holds a right to vote during decision-making and when making crucial organizational amendments. Stakeholders typically can control the company’s management through voting for the board of directors and on various operational changes suggested by the company.
This power plays a crucial role in determining financial effectiveness. They decide on significant shifts in the corporate’s goals and its structural changes. Through their voting powers, stakeholders can raise the company’s profit margin (Ferro-Soto et al., 2018). For instance, if the management board is poorly performing, they can vote it out and replace them with more efficient personnel who can lead well. They can also control changes in the corporate such as revenue generation methods, and propose changes that can earn more income.
Stakeholders can also influence a company’s financial performance by using economic powers. Such capacities are invested in stakeholders like customers, suppliers, and retailers. These abilities can either promote or compromise the financial base of the industry. Customers, for instance, are the primary ambassadors of a brand. A decision such as boycotting a product could immensely destroy the company’s financial performance (Ferro-Soto et al., 2018).
On the other hand, they can promote and locally advertise the products being produced. Suppliers can also control the financial performance of a corporate. Actions such as withholding supplies, not filling orders, and providing poor-quality materials can impair the economic capacity of the industry. Retailers are stakeholders who form the primary outlet for a company’s products and services. With their power, they can influence the finances by striving to increase sales or reduce the profit margin by not selling the organization’s products.
Stakeholders can influence the financial performance of a company through their political powers. Such powers allow them to use legislative means to control an organization and its operations. Using the legal process, for instance, a company’s product could be banned from the market leading to massive losses for the industry (Ferro-Soto et al., 2018). If services and products manufactured are presumed to be harmful, stakeholders can sue the corporate, and punitive legal measures are taken. In the automotive industry, for instance, stakeholders can sue a company if the airbags fail or if the vehicle has other defective parts that can cause malfunction.
External factors are elements outside the organization that the company has no control over due to their general nature but can affect the business. Such an environment has both positive and negative impacts on corporate success. They present opportunities like market dominance, leadership, and growth but also pose the danger of obsolescence for products, markets, and technology. A category of such factors that can alter the business is the political-legal factors. This can be defined as the business-government relationship and the political condition of the nation (Le & Ho, 2021). Government policies include imports, exports, taxation, consumer protection, and competition rules. These regulations can affect companies like Tesla, Inc. because their production and sales rely entirely on government laws. If the laid policies are unconducive, they may incur losses. Investment decisions are influenced mainly by the political stability of a country. For companies such as Tesla to prosper, they need a capitalist economy.
Tesla, Inc.’s operations and manufacturing designs are based on technology. Technological factors are the available means used to convert resources to products. Companies seeking a competitive edge ought to adapt accurately to the newest technologies. This is because of the impacts it has on manufacturing efficiencies, product development, and potential competition. In the present world, the technological dimensions are changing fast and therefore necessitate each organization to make immediate changes in their operations (Le & Ho, 2021). Adopting a stable technology will aid in producing quality products that meet the required standards. Failure to make technological advancements can lead to business collapse due to obsolescence.
In the present industrialized world, employee rights issues have been rising. Tesla can end this behavior and respect the rights of every employee. Doing so could have solved an ongoing social concern in the current workforce. Tesla, Inc., however, has missed this chance, and like most companies, it has allowed the trend to continue. Several Tesla workers have raised complaints of being threatened with violence, being mistreated based on race, and some being taunted for being homosexual.
In 2016, for instance, AJ Vandermeyden, a Tesla engineer, sued the company for pervasive harassment, being underpaid compared to her male counterparts, and being unjustly passed over for promotions (Borelli-Kjaer et al., 2021). The lady was fired after a while though the company denied that that was a retaliation for the lawsuit. Vandermeyden, in her statement, explains the toxic workplace culture at Tesla and the inequality in handling its personnel. As the personnel strives to meet the production goals, their health status has been dramatically compromised. The management has also laid strict measures to ensure that unionizing of workers does not occur, and a slight innocuous activity such as dressing in a pro-union cloth can get one fired.
The failure of Tesla to solve this social issue has negatively impacted the company’s stability and place in the world market. Tesla, Inc. has been labeled for gender violence and retaliation against engineer Vandermeyden. Such a picture can impair the company’s future as most people may not want to be associated with the harsh conditions. The production goals also have not been effectively met as the workforce is not well motivated in their endeavors.
References
Borelli-Kjaer, M., Schack, L. M., & Nielsson, U. (2021). # MeToo: Sexual harassment and company value. Journal of Corporate Finance, 67, 101875. Web.
Ferro-Soto, C., MacĂas-Quintana, L. A., & Vázquez-RodrĂguez, P. (2018). Effect of stakeholders-oriented behavior on the performance of sustainable business. Sustainability, 10(12), 4724. Web.
Le, L., & Ho, Q. (2021). Factors affecting the valuation of electric vehicle company in 2020: case Tesla Inc.
Matthews, T., Hirve, M., Pan, Y., Dang, D., Rawar, E., & Daim, T. U. (2020). Tesla Energy. In Innovation Management in the Intelligent World (pp. 233-249). Springer, Cham. Web.