Team Paper

3385 words - 14 pages

Elic-Tech: Going Further on Electric Fuel
John Ashi
Lisa Gonzales
Celeste Maldonado
Chris Navarro
University of the Incarnate Word

Although little is known about Faraday Future it that has not stopped this mysterious new startups ability to gain attention from its top competitors. Faraday sees everyone as a potential competitor for example, major automakers like Audi, Ford, General Motors, Mercedes-Benz, Toyota and others. When Faraday was asked who their main competitors were, they replied our current competitors for Faraday include Tesla and Apple, even though Apple doesn’t have a car. Faraday Future’s (FF) vision is focused on the equal importance between automotive ...view middle of the document...

Accelerating from 0 to 60 in 3.7 seconds and achieving a range of 245 miles per charge of its lithium ion battery, the Roadster set a new standard for electric mobility. Tesla would sell more than 2,400 Roadsters, now on the road in more than 30 countries.
In 2012, Tesla launched the Model S, the world’s first premium electric sedan. Built from the ground up to be 100 percent electric, the Model S has redefined the very concept of a four-door vehicle. With room for seven passengers and more than 64 cubic feet of storage, Model S provides the comfort and utility of a family sedan while achieving the acceleration of a sports car: 0 to 60 mph in about five seconds. The Model S was named Motor Trend’s 2013 car of the year and achieved a 5-star safety rating from the U.S. National Highway Traffic Safety Administration.
In late 2014, Tesla CEO Elon Musk unveiled two dual motor all-wheel drive configurations of the Model S that further improved the vehicle’s handling and performance. The 85D features a high efficiency motor at the front and rear, giving the car unparalleled control of traction in all conditions.
Now with more than 50,000 vehicles on the road worldwide, Tesla is launching the Model X, a crossover vehicle that entered volume production in 2015. Featuring exhilarating acceleration, falcon wing doors, and room for three rows of seating, the Model X defies categorization.
Tesla’s vehicles are produced at its factory in Fremont, California, previously home to New United Motor Manufacturing Inc., a joint venture between Toyota and General Motors. The Tesla Factory has returned thousands of jobs to the area and is capable of producing 1,000 cars a week.
The company is expanding its manufacturing footprint into other areas, including in Tilburg, the Netherlands, where it has an assembly facility. Tesla and key strategic partners including Panasonic have begun construction of a giga-factory in Nevada. By 2020, the factory will produce more lithium ion cells than all of the world’s combined output in 2013, the factory will also produce battery packs intended for use in stationary storage, helping to improve robustness of the electrical grid, reduce energy costs for businesses and residences, and provide a backup supply of power. Tesla is not just an automaker, but also a technology and design company with a focus on energy innovation.
An analysis of the Porter’s five forces in relation to the company shows: Barriers to entry for the electric cars market is quite high since Tesla has already achieved economies of scale with its Roadster model and the Model S. It experiences high revenue volatility due to its continued development in the tech department and research while the company suffers from low sales volume. The capital intensity is a major factor due to this industry requiring a large investment for manufacturing plants as well as the infrastructure needed for electric vehicles charging and maintenance. Tesla has...

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