Tuesday, 16 July 2019

Financial Analysis and Generic Consultant’s Letter


Comprehensive Financial Analysis
Tesla Motors is one of the automotive companies that deal with the sale and distribution of electric vehicles and related components. The company’s CEO, Elon Musk, needs to formulate effective strategies to thrive in the highly competitive automotive industry. Over the years, the company has only focused on selling its products directly to the consumers as a way of promoting its brand. Tn 2012, the company introduced Tesla Model S as one of the all-electric five-door liftback locomotives. The new model was the first electric car that emerged at the top of monthly new car sales in 2013.
The Model S is one of the current Standard automotive in production. Tesla Motors Inc. introduced the product in 2012 to meet the demand from customers. The product had the highest battery option that would serve customers for a distance of 265 miles in a single charge. Arguably, it was one of the highest achievement for the company. However, the company managed to post its first proceeds of $11.2 million during the first quarter of 2013. In the future, the top executives anticipate that Tesla Motors will become one of the independent automakers in the market.
Tesla Motors Inc. produces outstanding products at a friendly price that suit the needs of consumers. The company’s stock has grown over the years because ofthe increasing sales volume. Arguably, the impressive increase in stock price can be a surprise to the investors because ofthe company’s higher earnings. The company introduced the Model S vehicle to compete with other luxury car sports arenas, such as Audi, Mercedes, and BMW. The management estimates that 21,000 model S vehicles will roll out at production facility at a price between $70,000 and $100,000. Tesla is likely to increase the production volume of Model S.
Consultants Letter
Because of the increasing competition in the locomotive industry, I recommend the need for accelerating the advent of electric vehicles in the market and other forms of energy storage systems. The financial analysis provides the company with a lucrative opportunity of assessing its operating environment and the factors that have an influence on its internal and external environment. In the future, it would be imperative for the company to enhance its marketing strategies to increase the overall sales volume of Model S vehicles. Moreover, it would be important to create awareness about the advantages of using electric vehicles. I recommend that you pursue and maintain a proactive mechanism that encompasses delivering products on a timely basis and clears all the uncertainties about electric cars among customers.
The company is vulnerable to potential risks if it fails to address and mitigate potential risks of increased competition from close rivals such as BMW. For this reason, it would be of importance for Tesla to enhance its multinational presence as a way of addressing competition from close rivals. Apparently, TeslaMotors Inc. has managed to facilitate the growth of its business network. Therefore, I recommend the need to invest more in marketing to enhance growth in overall sales. Based on previous financial reports, it is apparent that the company has a potential of penetrating deeper in the market through the production of sustainable products. Arguably, the growth of Tesla’s network is likely to enhance sustainable development through the reduction of fossil fuels. Therefore, the recommendations require the attention of your team to attain the set objectives.
I resonate that my financial analysis and subsequent recommendations provide Tesla Motors Inc. with the effective strategies of facilitating on-going growth and future success. The company should make proper use of the available opportunities to attain the set goals. If it will prove feasible to implement the recommendations, Tesla will likely to make a positive change in the locomotive industry.

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