As the demand increases for Tesla's Model, some questions need to be addressed by the
manufacturers of the model. The main question being as to whether the company will be able to
raise enough money to facilitate the company's expansion. Until now, the company has not
shown any signs that it needs more cash, but many analysts argue that the company should use
an increase in model 3 issues to get power to acquire capital (Siddiqui et al., 2020). Other
analysts also claim that Tesla should raise around $3 billion to enable it to expand its capacity to
meet the increase in demand for its vehicles. With the increased demand for its products, the
company will justify additional capital needs by stating that the demand occurs to manufacture
more car and battery sooner rather than later, while at the same time optimizing on an exposed
capital market (Dryer & Furr, 2016). It is hoped that if Tesla achieves this, then it shall have
answered the question many critics ask of whether this company will be able to convert from a
small automaker to a big market firm.
At the Centre of its manufacturing issue is the automaker's main assembly plant in
Fremont, California, and whether it can increase its production there quickly to meet the demand
and also improve the performance through its discoveries and inventions. Statistics show that
when the manufacturing plant was still owned jointly by General Motors and Toyota, it produced
half a million yearly. The statistics point to the idea that Tesla can produce more vehicle; all it
needs to do is ramping production of Model 3 (Grant, 2018). Now the main question for the
company is when it is likely to add another final plant where automobiles can be assembled.
Another issue that needs to be addressed is Tesla's new "million miles" battery. The battery
which is at the Centre of Tesla's plan was developed jointly with China's Contemporary
Amperex Technology Ltd (CATL), and it deploys knowledge developed by Tesla in partnership
with a group of theoretical battery specialists hired by Musk.
In later years enhanced forms of the battery, with much superior energy mass and loading
size and even lesser cost, was introduced in addition to Tesla automobiles in other markets,
including in North America. It is believed that Tesla will soon launch the new battery in China,
and its more comprehensive plan is to reposition the company. However, the company has not
commented on this claim. If launched, Tesla's new batteries will be dependent on innovation like
low-cobalt and cobalt-free battery interactions (Grant, 2018). Further, there will be the use of
TESLA’S MODEL 3 3
chemical condiments and coatings that will lessen inside a stress and allow batteries to keep
more energy for more extended periods. Tesla also strategizes on implementing high-speed,
greatly computerized battery industrialized processes intended to ease labour charges while
increasing production in huge factories which is many times the size of the existing companies.
The report is that Tesla is in advanced talks to the usage of CATL's lithium iron
phosphate batteries (Bernhart, 2019), which do not use cobalt, which is the costliest metallic in
EV batteries. Further, CATL also has established a modest and a cheaper way of wrapping
battery cells, known as cell-to-pack, that eradicates the internal phase of pushing cells. The
technology is to be used by Tesla to reduce battery mass and price. Finally, with regards to
Tesla's mission; it started to hasten the world's changeover to green energy. It was started in 2003
by an assembly of engineers who just wanted to demonstrate that folks did not need to find the
middle ground to drive vehicles, that electric automobiles can be better, faster and more
enjoyable to drive than petrol cars.
The mission was to hasten the world's change to sustainable means of transport.
However, in the middle of 2016, under the leadership of Musk, the business changed the
commercial mission to sustainable energy. The new announcement indicated a small but
essential swing in the corporation's trade, to talk about market prospects for renewable vigor. In
an approach, the innovative company undertaking distinguishes the consequence of the
company's sets and linked energy loading goods in marketplaces besides the electronic vehicle
market (Dryer & Furr, 2016).
The mission has the following outstanding components, which include accelerating,
influence world transition, and finally, for maintainable energy, to quicken a section of the trade
mission and creates Tesla's character insistent of the engineering to the progressive tools for
bearable corporate and goods that depend on renewable dynamism. The commercial purpose also
comments about global transition, which shows the company's anticipation of positive power in
the world market for rechargeable vehicles and other related goods (Grant, 2018). The module
directly tells how the corporate statement emphasizes on the world market. Moreover, the
transformation from a viable transport method to justifiable energy portrays that the company's
mission evolves, matching the existing strategic purposes of the occupation. For example, the
corporation used to focus on making electric vehicles only. However, this firm's analysis shows
TESLA’S MODEL 3 4
that the upward demand for renewable energy is replicated in the business's upgraded
occupational scope to shield goods like batteries and other gainful renewable energy solutions.