Tesla Motors, Inc.’s mission and vision statements reflect the nature of its prominent all-electric automobile manufacturing business. Established in 2003, the company became profitable in 2013. Continued growth shows that the market is responding to the organization’s automotive and related products. This condition highlights the appropriateness of the company’s mission statement. In essence, the corporate mission statement guides Tesla’s strategic decisions. In relation, the corresponding corporate vision statement shapes Tesla’s direction of organizational growth. With a strong brand image and increasing popularity, the company is positioned to succeed in the global electric automobile market.
Tesla Motors, Inc. follows its vision and mission statements to focus its business on electric automobiles and related products. However, recent changes in the market and the business have prompted the company to revise its mission statement while keeping the same vision statement for the meantime.
Tesla Motors 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 vision emphasizes the company’s focus on renewable energy. The following components are significant in Tesla’s vision statement:
- Most compelling
- Car company
- 21st Century
- The world’s transition to electric vehicles
In its vision statement, Tesla Motors, 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 vision statement focuses Tesla’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, Tesla continues to expand its operations, with plans for new factories in developing regions in Asia. Thus, Tesla’s vision statement reveals the organization’s aim to be the dominant player in the global electric vehicle market.
Tesla Motors Inc.’s Mission Statement
Tesla’s mission statement was “to accelerate the world’s transition to sustainable transport.” However, in mid-2016, the company changed it to “to accelerate the world’s transition to sustainable energy.” This new mission statement indicates a slight but significant shift in the company’s business, to address market opportunities for renewable energy. Tesla’s mission statement has the following notable components:
- The world’s transition
- Sustainable energy
The “acceleration” component of the mission statement establishes Tesla’s role in pushing the automotive industry toward advanced technologies for sustainable business and products that rely on renewable energy. The mission statement also mentions “the world’s transition,” which indicates Tesla’s expectation of successful dominance in the global market for electric automobiles and related products. This component directly relates with the vision statement’s emphasis on the global market. Moreover, the change from “sustainable transport” to “sustainable energy” shows that Tesla’s 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, the growing demand for renewable energy is now reflected on Tesla’s improved business scope, to cover products like batteries and other potentially profitable renewable energy solutions in the future.
Tesla’s Mission & Vision – Analysis & Recommendations
Tesla Motors, 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 mission statement by including more details about the company’s approaches in fulfilling its vision.
Tesla’s vision statement effectively describes business aims. However, it does not cover current business endeavors. For example, while the mission statement has already changed to consider “sustainable energy,” the vision statement still focuses on “electric vehicles.” In this regard, a recommendation is to adjust Tesla’s vision statement to change it to reflect the organization’s increasing interest in products other than electric vehicles.
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- Tesla Motors, Inc. Form 10-K.