Introduction

In this report, we attempt to analyze the current compensation plan for Tesla Motors and thendesign the compensation package for any specific individuals of the organization. Tesla Motors, a company with an aim to manufacture and sell electric-efficient automobiles as a substitute to traditional petroleum-based automobiles was formed by Martin Eberhard and Marc Tarpenning in 2003. In 2008, Elon Musk took over as the CEO of the company. The company’s mission is to transform the buyer and shift the buyer from traditional fuel-based cars to electric vehicles (Halla, 2015).

The company is following the focused differentiation strategy as the consumers that the company is targeting belong to high and middle income levels and seek performance along with creativity. The company is designing and developing cars using itsinnovative technologies to deliver the most effective automobiles that promise high performance along with creative designs. This shows that a market penetration strategy is being used by Tesla Motors. The company is using a transnational strategy at an international level by exploring different markets like European and Asian markets in order to achieve a global advantage towards its goal along with local responsiveness (Musk, 2006). This strategy has played a vital role in growing its revenues as Europe generates the highest percentage of Tesla’s revenue.

Tesla Motors appears to be concentrated within the automobile industry only. The company designs its cars in-house, which allows the company to attain the lowest cost possible and with an enhanced battery, which consists of more than 7,000 cells, far greater than Nissan Leaf. The company first used rechargeable batteries from Panasonic, however, companies like Nissan and BMW made the batteries in-house, which increased their cost. Tesla also provided features of customizing the car’s behaviors (Musk, 2006).

The company also bought production equipment from other automobile companies at discounts, which made the production cost cheaper than the industry. Furthermore, the company operated its independent stores for the sales of its cars unlike other car manufacturers which sold their cars through independent dealers that have their interest in selling different ranges of products (Kim, 2004). We now begin with the discussion of the mission, achievement and the key success factors of Tesla Motors and then perform a detailed analysis of its compensation package in this report.

Designing Compensation Package of Tesla Inc Harvard Case Solution & Analysis

Core Mission of Tesla Motors

The company’s core mission is to transform the buyer and shift the buyer from traditional fuel-based cars to electric vehicles. At the business level, the company is following the focused differentiation strategy as the consumers that the company is targeting belong to high and middle income level and seek performance along with creativity. The company is designing and developing cars using their innovative technologies to deliver the most effective automobiles that promise high performance along with creative designs. The company is using a transnational strategy at an international level by exploring different markets like European and Asian markets in order to achieve a global advantage towards their goal along with local responsiveness.

This strategy has played a vital role in growing their revenues as Europe generates the highest percentage of Tesla’s revenue. At a cooperative level, the company is building strategic alliances with many companies to take advantage of their technologies and experience................

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