Tesla Incorporation which was previously named Tesla Motors is a public listed company and was formed in the year 2003 by a bunch of Engineers. The inspiration behind formulation of the company was to change the mind-set of the people who assumed that electric cars lack in speed, style and class, Tesla wanted to change the perception of people and disrupt the automobile market (Nykvist & Nilsson, 2015). Tesla proved to the world that Electric cars can be bigger, better, quicker and more fun to drive than fuel cars. Tesla has a noble mission; it wanted to accelerate the world’s transition towards sustainable energy. Tesla operates in Automotive and Energy sector, it employees more than 30,000 people who are on a mission to reduce the use of fossil fuel as the source of Energy. The headquarters of the company are located at Palo Alto, California and all its vehicles are produced at its Fremont factory in California. Tesla serves across the globe and it also has set up a forward looking mission for itself; Produce 500,000 cars by 2018(Doucette & McCulloch, 2011)
Tesla was focussed on providing sustainable energy to the world and hence it did not limit itself to the production of electric cars, it took it a notch higher and designed unique set of energy solutions to cover the entire sustainable energy ecosystem, Powerwall, Powerpack & Solar roof are some of its solution which facilitates generation, consumption and storage of renewable energy. Since the inception Tesla has been in the news for its breakthrough technology and its mission for providing sustainable energy, its CEO Elon Musk is seen as one of the most profound Thought leaders across the world (Rajashekara, 2013)
Tesla wants to build world’s most affordable electric car and make its products accessible and affordable to a large number of people, accelerating the advent of clean transport and clean energy production. The report is aimed at identifying the environmental factors which are creating a need for the sustainable marketing and to assess the potential impact of the issues on Tesla in the future. It will also be interesting to see how Tesla is ensuring and managing sustainability in the organization (Mangram, 2012)
It can be understood as the component of sustainable development which meets the needs of the current world without compromising the ability of the future generation to meet their own needs. It is a new age concept in marketing but it is picking up on the popularity charts and companies around the world are using this concept as a game changer in their respective industries and also with a rooted mission to make the world a better place(Martin & Schouten,2011)
Meeting the needs of consumer’s while preserving the ability of the future generation to meet their needs is the underlying concept of sustainable marketing (Emery, 2012)
There are no two thoughts on the point that issue with the environment is a major influence on the car industry, the legislation related to the environment affects design, performance and the ways in which the vehicles are manufactured. Some of the Environmental impact factors are:
All the factors mentioned above create a pressure on the industries to come up with the products which have sustainability towards the future, products should be designed which have bare minimum impact on the environment and hence the environment could be preserved for the future generation.
Tesla was one of the earliest players to realize the impact that the burning of fossil fuels is causing on the environment and quickly converged all the efforts of Tesla towards sustainability of the environment. Tesla actually uses clean, green and renewable source to drive its vehicles and is constantly upping up the envelope of technological innovation to come up with better sustainable products in the future (Rusinko, 2007)
Majority of the people know Tesla as a company which produces automobile and makes batteries, but in actual it is a company making batteries which is also in the production of electric cars. The company’s mission here is to show the world that it is not dependent on fossil fuels for energy. There seemed to be a popular myth about the electric cars, they were not practical and hence people were not willing to buy electric cars, Tesla came, conquered and changed the perception about electric cars, as the Tesla cars were practical, fast, great designing and compact in existence(Armand & Tarascon,2008)
Tesla’s cars are considered absolutely green, in the sense that they don’t burn gases, with no engine, no gas tank and practically no exhaust they are considered to be practically zero emission vehicles. One practical problem with the Tesla’s electric cars is that it runs on electricity, which in turn is a product of one of the dirtiest fossil fuels which is coal. Tesla understands the criticism and acknowledges the concern of the expert, at the same time it has showed that it is far cleaner than any of its competitors and its battery operated cars are more efficient in converting and storing the energy than any of the other cars in the market (Greenblatt & Shaheen, 2015)
Another impact of sustainability on Tesla is that electric vehicles are too much environmentally destructive to manufacture starting with the first step of producing the energy requirement to produce the lithium ion batteries. The batteries which are packed in the present world are heavy and expensive and require some of the rarest materials on earth to produce, which certainly has a cost implication. Thus this impact can cause the cars to cost higher in the future, if Tesla has to provide start to end green environment for the world (Helmers & Marx, 2012)
Despite the fact that Tesla is using electricity to drive its vehicles which is made from fossil fuel it is not entirely written down by scientists and the experts, and they look up to Elon Musk to drive a car with Solar and water in the future. It is assessed that the present is short but the future is a long terms vision, with the changing environmental trade-offs, the majority is in the favour of electric cars for the sustainability in the environment. And also, with Tesla investing in R&D towards the use of solar energy for its cars, it is just a matter of years that cars with solar power will be driven on the ground, reducing the impact on the environment considerably (Egbue & Long, 2012)
Another astonishing fact which makes Tesla a unique company when it comes to impacting sustainability is that no company in the past or present has moved forward in the direction of promoting the development of commercially viable electric cars with a single aim of bringing them to the mass market and ensuring environmental sustainability. Tesla has recently acquired Solar city, it is a solar panel company, and Elon Musk is looking forward to develop batteries for storing solar generated power and then use it for driving the vehicle-A technology which many people in the past have tried but its only Tesla which is focussed to deliver solar powered batteries to its cars. Tesla has ensured the world that in a span of few years, most of its cars will be affordable, efficient and greener than their current versions (Ottman, 2011)
It was in 2016 when Tesla launched its Model S electric car, it was absolutely terrific in design, rightly priced and within the hours of release it has received more than 180,000 pre orders filling the pockets of the company in advance by $180 million in one single day. Sustainability derives in the mind of Tesla, but it is quite fanatical about its design as well. Tesla first designs the car in the most beautiful stylish way possible and then sits back about how they will manufacture it. Thus achieving best of world, a great design and a resolute mind to manufacture the car, this is one of the strongest impacts of sustainability on Tesla. Tesla in a way operates like Apple; the way Apple created a cluster of products like icloud, app store, devices, ipods, earpods etc. for the users, Tesla is exactly doing the same by creating a web of products, retail spaces, charging station, in home batteries and many more in its bucket list. Hence, it can be said that it is encapsulating the electric cars with everything that is required along with the car, a great example of futuristic thinking by Tesla (Cervellon & Shammas, 2013)
The reason behind Tesla being one of the most promising automobile companies in the world which is focussed on the mission of ensuring sustainability in the environment and the society is it being highly focussed in its approach and its ability to not deflect and deviate from its core mission-Transition to sustainability. Other impacts of sustainability on Tesla can be:
One of the USP of Tesla’s communication strategies is it being consistent across all medium and to all its stakeholders. The company has been vocal in all its press releases and its endorsements as to what it wants to achieve for the community, society and the world and has maintained that it wants to create a world which is clean and green and will ensure the transition to sustainability will be smooth.
The company announced launch of a new business Tesla energy which would provide lithium ion batteries to homes and businesses. This was done with the single aim of creating a world where the batteries will be charged with renewable energy. Buying of solar companies to charge the batteries and come up with the solution of making cars which will be driven by solar energy in the future is one of the strongest examples of how strongly Tesla thinks about sustainability in its business.
Construction of Tesla’s Gigafactory, one of the largest manufacturing plant on earth is half way complete, the plant is Tesla vision into the future to maintain sustainability. The construction of the plant started way back in 2014 and is a hugely anticipated project by any company on Earth. As mentioned earlier, Tesla is looking the cover the entire ecosystem of the services which will be required by the electric cars. The plant is certainly a step into managing sustainability by producing charging station, batteries and cars being operated on solar energy, and in some case even water is being considered for driving the vehicles.
While Tesla’s single most vision was to go green and safe the environment, currently it seems to be at loggerheads between tow concepts; Going green and driver less cars. It is looking forward to strike a balance between the two and ace in both the platforms. Tesla has recently been welcomed by Anand Mahindra of Mahindra group to come to India and set up a manufacturing plant especially for the electric car consumption in India. Tesla had been eying India since long and has also vested interest in poor places like Africa and big markets like China to spread the prevalence of electric cars. This can definitely be seen as one of the biggest steps the company has taken to ensure sustainability in its business by expanding to countries with maximum impact.
A shocking revelation about the depth of Elon Musk vision for ensuring sustainability is that until now Tesla has not spent a single dollar towards advertising, at the time when companies are spending millions on advertising, Tesla is spending every single dollar on the research and development of its electric cars and how effectively it can use the renewable sources of energy to drive cars. He believes in disruptive marketing trick, where he will create a product which will be absolutely loved by the customers and experts and will be sold on Word of Mouth and organic marketing.
At present there are more than 70,000 Tesla owners worldwide who enjoy the benefits of 100% electric cars. Tesla takes care of its customers and ensures sustainability in the business spectrum by providing more than 400 charging stations across North America, which allows users to have access to high speed charging and refilling the batteries of the vehicle in less than 20 minutes, reducing the emission of harmful gases in the environment(Eisler, 2016)
Tesla reinvented the wheel by providing the Tesla retail experience, it was the third largest luxury vehicle manufactures after Mercedes Benz and BMW. Tesla’s retail experience believes in creating an environment which allows people to advance the knowledge of electric vehicles in a convenient, accessible and a no pressure environment. Tesla’s showrooms are not located at highways but in shopping malls to have more number of eye balls on its cars, technology and the designing. Through its retail experience model they want to make the people aware of the benefits of clean and green fuel and its benefits towards ensuring sustainability in the environment.
Another smart activity done by Tesla is marketing its inventor and innovator, Elon Musk, who is also known as the Iron man of the 21st century and is seen as the biggest innovator of the recent times. He is credited with space travel, solar energy and sustainable transport. He is at the forefront of the forums and magazines focussing on sustainability, electric and hybrid cars and thought leaders who are moving forward with a mission to change the world and make it a better place. This marketing strategy used by Tesla has been working in favour of Tesla as it is creating a good buzzword and it covers all the benefits Tesla’s electric cars will do to the environment while ensuring sustainability and providing sustainable energy to drive cars and help in creating a cleaner and greener environment.
Conclusion
Elon Musk proclaimed a year back that Tesla will reach Apple’s market cap of $ 700 Billion by 2025, it was most certainly a very bold statement to make, but with the dedication and the sincerity Tesla is marching forward, it certainly does not seem to be just another Faux-pas. The company is expanding to highly populated markets of India, China and Africa, not only with the sole aim of earning revenue, but it wants to have a wider adoption of electric cars as they are one of the best solution towards sustainable marketing. There are no two doubts on the fact that Tesla has disrupted the automobile market and in couple of years it will be leading the market with flair and grace, with added star of providing sustainability to the environment. Most definitely Tesla has accelerated the world into sustainable personalized transportation faster than any one could ever though, and now it’s just a matter of couple of years when the world transits into a cleaner and greener environment.
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