TESLA – Value Creation

By Yzf2012

Tesla is one of the biggest and modern companies when it comes to value creation. They have 45 000 employees worldwide as of 2018, and has 12 global offices spread across 8 countries, as well as smaller offices in the rest of the world.

One of the biggest reasons Tesla has so many employees in different countries is because they deliver their vehicles worldwide. The vehicles are manufactured in their main factory in Fremont, California. If you order one to Europe, it gets sent in smaller parts to the Netherlands, and reassembled there before being shipped to its main destination. In order to do this, they need workers in the Netherlands, as well as mechanics in the different locations where people use their cars.

The company is greatly expanding, and Is constructing a new gigafactory in China, making it easier to sell to this market. When they do this, they also create a lot of new jobs, as well as contributing to the country where the factory is located in form of taxes, wages and trading with local companies. In this way, Tesla is very big in value creating when they start these big projects around the world.

Cars is not the only thing this company is in charge for. They have a big eco-system which is heavily focused on renewable energy. Tesla offers solar panels engineered with focus on design and efficiency. These solar panels can be paired up with the Tesla powerwall, which is a battery that stores the collected energy from the solar panels. Via this powerwall, you can choose to store the energy, use it in your home, or sell it back to the grid. Another very popular product and is one of the main reasons people choose Tesla over other electric cars is the Tesla supercharging stations. These stations make driving over longer distances with a Tesla a lot more efficient, and it charges the cars up to 80% of power within 30 minutes.  These stations are located all over Europe as well as North America.

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In order to maintain, manufacture and sell all these products they need a lot of employees all over the world. This is one of the reasons I chose to talk about their value creation, because they either have active employees in a lot of countries, or they pay other local mechanics or engineers in some countries to do their work for them. The earn a lot of money every year, but also spend a lot when trading with other companies all over the world. This makes them big value creators in most of the developed countries in the world. I believe Tesla is only getting bigger and bigger and will create a lot more value in forms of jobs and financially all over the globe.


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