As upper-level management it is important to understand the key components of cost-volume-profit analysis. Identifying objectives including concepts related to CVP is crucial to the absorption of information. The paper provides a summary of Tesla Motors, the company outlined. Explaining the relationship between cost-volume-profit analysis is discussed as well as how the company is using this tool to maximize production and profit. Summary Tesla Motors, Inc. is a company based in Silicon Valley. Telsa designs, manufactures, and sells electronic cars. Telsa is a publically traded company that trades in NASDAQ stock exchange. Telsa became well known after producing the Telsa Roadster, the first…show more content… CVP analysis is important when profit planning. It also is a significant part in such management decisions as setting selling prices, determining product mix, and maximizing use of production facilities (4.9.1.6). A change in any of the projected components will cause management to revisit CVP analysis for updated projections. A Cost-Volume-Profit Analysis also consists of the CVP income statement, break-even analysis, margin of safety, target net income, changes in business environment, and the CVP income statement revisited. Companies perform and revisited “CVP analysis to plan or adjust future levels of operating activity and provide information about: ▪ Products or services to emphasize ▪ The volume of sales needed to achieve a targeted level of profit ▪ The amount of revenue required to avoid losses ▪ Whether to increase fixed costs ▪ How much to budget for discretionary expenditures ▪ Whether fixed costs expose the organization to an unacceptable level of risk (4.9.1.6).”(Wiley 2012). Conclusion This paper has provided a detailed summary of Tesla Motors productions and expected production to reach breakeven point. The paper has outlined the two concepts from week four breakeven and CVP analysis that are assessed within the highlighted organization. The by and large the goal for Tesla Motors is to produce at the highest capability and turn over a profit.
Simplified Budget 20 Overall Budget Appendix: A Events Budget Appendix: B Tesla Model S Table of Contents Executive Summary Situation Statement Tesla Motors Inc. is preparing for its Toronto debut in January 2010. Tesla wants to create preorder sales for its debut. The company wants to position its vehicles as viable alternatives to…
Tesla Motors – First Quarter 2015 Shareholder Letter • • • • • • Produced 11,160 vehicles, exceeding plan while improving efficiency Record quarterly deliveries of 10,045 vehicles Achieved gross margin target, despite strong dollar Launched All-Wheel Drive Model S 85D and 70D Introduced Tesla Energy products Model X on track for start of deliveries in late Q3 May 6, 2015 Dear Fellow Shareholders: In 2015, we have already expanded our product portfolio with exciting new products and features while…
Tesla Motors Strategic Analysis Prepared by: Lexen Beran Brenna Hayes Travis Heidemen Jenna Hughes Jake Latimer In Partial Fulfillment Of the Requirements For: MANGT 595: Business Strategy M/W/F at 12:30pm 1 Table of Contents Table of Contents…………………………………………………………………...……2 Executive Summary……………………………………………………………………...3 Introduction………………………………………………………………………………4 External Analysis………………………………………………………………………...5 Internal Analysis…………………………………………………………………………8…
that Tesla Motors faces is the society and subcultures. In this day in age consumers worldwide have increased their knowledge and sensitivity about its environment. Numerous companies have catered to this need of becoming more environmentally responsible by offering products that are “green” or environmentally friendly. This new growth amongst people and organizations alike of becoming more environmentally conscious has created an opportunity for Tesla Motors with its brand of product. Tesla Motors…
Future prospects of Green Cars-Tesla Wei Chen Grand Canyon University: BUS-485 03/15/2015 Future prospects of Green Cars-Tesla Executive Summary (write this last per instructions) Overview There are over 240 million cars and light trucks on the road today, consuming 8 million barrels of oil per day. Each gallon of gasoline we burn produces about 25 pounds of carbon dioxide (According to the report NRDC) – the most common global warming pollution that poisons the atmosphere when…
To: Deepak Ahuja, CFO, Tesla Motors, Inc. From: Harmony Piazza Date: December 1, 2014 Subject: Tesla’s strengths and weaknesses Tesla’s key strengths and weaknesses are identified below. See Exhibit 1 and 2 for detailed VRI analysis results. Strengths: Innovative and Strong Research and Development Tesla’s strong technological advancement offers the corporation the potential for competitive advantage and differentiation of product. It is the technology of the industry that sets the companies…
automotive industry that was such a big part in forming our country tries to rebound itself. However this time it is not happening in Motor City Detroit. The new innovation is occurring on the west coast of California and Nevada. Tesla Motors Inc. is leading the way with bringing life back to the electric automobile and revolutionizing the automobile industry. Tesla Motors is continually growing each day, and changing the way things are done with new innovative ideas. They are succeeding as their employees’…
squeaky clean, of course, in the sense that they don’t burn gas. With no engine, no gas tank, and no exhaust, they’re considered to be zero-emissions vehicles. But there’s more to a vehicle’s environmental impact than what comes out of the tailpipe. The Tesla doesn’t run on air. It runs on electricity, which in turn is generated from a range of different sources, from nuclear fission to natural gas to the darkest, dirtiest fossil fuel of them all: coal. So if you’re going to stack a Tesla’s per-mile emissions…
Brand Audit of TESLA Motor’s Owner The owner and director of Tesla Motor’s is Elon Musk, a South African born Canadian American, Inventor, Business magnate and global investor. (Johnston, 2014) His initial rise to Global success was due to his company PayPal which generated huge revenue providing secure monetary transactions online. PayPal was sold to eBay for 1.5 billion dollars in the year 2000. (Bellis, 2014) History Tesla Motor’s was started in 2003 by American entrepreneurs Martin Eberhard…
4.2 - 4.2.4 Company Snapshot Place in industry- Tesla falls into the luxury car and automobile industry. Tesla Motors falls under three specific markets, Luxury Vehicles, All-Electric Vehicle, and Sports Car. Luxury automobiles currently take up about 15% of the automobile market. The automobile industry is dominated by manufactures like BMW, Mercedes and Cadillac. The industry as a whole generates $87 billion revenue and $1 Billion in profit last year. According IBIS World projects an industry…