Tesla, Inc.’s (formerly Tesla Motors, Inc.) mission and vision statements reflect the nature of its prominent all-electric automobile manufacturing and related businesses. Established in 2003, the company became profitable in 2013. Continued growth shows that the market is responding to the organization’s automotive and energy storage products. This condition highlights the appropriateness of the company’s mission statement. In essence, the corporate mission statement guides Tesla’s strategic decisions, such as in what the company needs to do in order to achieve business effectiveness. On the other hand, the corresponding corporate vision statement shapes Tesla’s direction of organizational growth. For example, the company aims for leadership as a multinational automotive business that focuses on electric vehicles. With a strong brand image and increasing popularity, the company is positioned to succeed in the global electric automobile market. Satisfaction of the corporate mission along with the corporate vision serves as an indicator of Tesla’s operational effectiveness and business development.
Tesla, Inc. follows its corporate vision and mission statements to focus its business on electric automobiles and related products, such as solar panels and rechargeable batteries for cars and other applications. However, recent changes in the market and the business have prompted the company to revise its corporate mission statement while keeping the same corporate vision statement for the meantime. Current strategies and management initiatives reflect these changes. For example, Tesla’s marketing mix (4Ps) emphasizes the target role of the company as a major player in the renewable energy storage market.
Tesla Inc.’s Mission Statement
Tesla’s mission statement was “to accelerate the world’s transition to sustainable transport.” However, in mid-2016, under Elon Musk’s leadership, the company changed the corporate mission to “to accelerate the world’s transition to sustainable energy.” This new statement indicates a slight but significant shift in the company’s business, to address market opportunities for renewable energy. In a way, the new corporate mission recognizes the relevance of the firm’s batteries and related energy storage products in markets in addition to the electric vehicle market. Tesla Inc.’s mission statement has the following notable components:
- To accelerate
- The world’s transition
- To sustainable energy
The “to accelerate” component of the corporate mission statement establishes Tesla’s role in pushing the industry toward advanced technologies for sustainable business and products that rely on renewable energy. The corporate mission also mentions “the world’s transition,” which indicates the company’s expectation of successful dominance in the global market for electric automobiles and related products. This component directly relates with the corporate vision statement’s emphasis on the global market. Moreover, the change from “sustainable transport” to “sustainable energy” shows that Tesla, Inc.’s corporate mission statement evolves to match the current strategic objectives of the business. For example, the company used to focus on producing electric automobiles only. However, this company analysis case shows that the growing demand for renewable energy is now reflected in the corporation’s improved business scope, to cover products like batteries and other potentially profitable renewable energy solutions in the future.
Tesla Inc.’s Vision Statement
Tesla’s vision statement is “to create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles.” This corporate vision emphasizes the company’s focus on renewable energy. Specifically, the corporation addresses the electric vehicle market as a major avenue for facilitating growth of the global renewable energy market. The following components are significant in Tesla Inc.’s vision statement:
- Most compelling
- Car company
- 21st Century
- The world’s transition to electric vehicles
In its corporate vision statement, Tesla, Inc. aims to be the most compelling in the industry. This component indicates leadership and excellence in the business. The company approaches this aim by integrating advanced technology in its electric automobiles and related products. On the other hand, the “car company” component of the corporate vision focuses Tesla Inc.’s efforts on designing and manufacturing cars. The company’s leadership in electric vehicle design and production satisfies the “21st century” component. This component implies the firm’s use of advanced technology to address current concerns, such as environmental conservation. The fourth component points to the company’s global goals. For example, the business continues to expand its operations, with plans for new factories in developing regions in Asia. Such expansion addresses major competitors, such as Toyota Motor Corporation, General Motors Company, Volkswagen, Nissan Motor Company, Honda Motor Company, and BMW (Bavarian Motor Works), among others, considering the competitive landscape described in the Porter’s Five Forces analysis of Tesla Inc. Thus, in this business analysis case, the company’s vision statement reveals the organization’s aim to be the dominant player in the global electric vehicle market.
Tesla’s Corporate Mission & Corporate Vision – Analysis & Recommendations
Tesla, Inc.’s mission statement is satisfactory in terms of presenting the company’s goals. It adequately covers the kinds of products that the company sells, the market scope of the business, and the market position of the company. However, it does not provide adequate information about the general direction of Tesla’s organizational development. Thus, a recommendation is to improve the corporate mission by including more details about the company’s approaches in fulfilling its corporate vision.
Tesla Inc.’s vision statement effectively describes business aims. However, it does not cover current business endeavors. For example, while the corporate mission statement has already changed to consider “sustainable energy,” the corporate vision still focuses on “electric vehicles.” In this regard, a recommendation is to adjust Tesla Inc.’s vision statement to reflect the organization’s increasing interest in products other than electric vehicles.
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- Tesla, Inc. – About Tesla.
- Tesla, Inc. – Form 10-K.