Essay Example on Stakeholders: How Tesla Relied on Investors in Early Years

A stakeholder refers to any individual, organization or group of people who have vested interested in the activities or operations of the business (Nickolas, 2019). They are influenced by the actions that the business undertakes. Thus, they are found either within the business or outside the business. In the early year of the organization, Tesla was tremendously independent on the stakeholders as investors. Notably, these investors were tremendously important to the company’s capital as well as the cash flow.

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The investors are mainly concerned about the profitability, operation and growth of the business. The key stakeholders of Tesla Motors include its owners, suppliers, employees and the consumers. Other individuals such as Jeffrey Straubel and Co-founder Tesla owns 306,398 of the company. The CFO of Tesla, Deepak Ahuja possesses a 25,015 shares directly and another 38,789 shares indirectly through family trusts. Other investors include Daimler, who bought about a 10 percent equity percent stake in Tesla worth an estimated $50 million. Toyota further bought 3 percent of the entire company’s stock (Nickolas, 2019). With these investors, the company announced a development program for new Mercedes Benz with full powertrain, and obtained the ownership of the New United Motor Manufacturing Inc. In October 2010, the company, through its owners further announced that it would extend its partnership through providing some of its components to power the electric version of Toyota’s crossover SUV, and the RAV4.

Suppliers constitute to another set of the key stakeholders of the company. One of the main suppliers of Tesla is the Panasonic. Ideally, this group of stakeholders is critical to generate the product sold by the company. Without the suppliers, the company is unable to produce a product and thus cannot meet the demands of the consumers (Nickolas, 2019). Thus, valuing of the roles of the suppliers is important to the success and growth of the business because it enables the customers to benefit from the long-lasting goods. Based on the fact that Panasonic has several years of experience in production of excellent batteries, Tesla should therefore continue to partner with them and offer to enable them be the only suppliers for all the electric car battery needs. In my view, this move will also influence the suppliers.

The consumers forms another important component of the stakeholders of Tesla Company. Studies have shown that customers are critical component based on the fact that they influence the company’s income and are concerned about the quality of the goods produced as well as the pricing level that is justified. In order to satisfy the demand, Tesla is currently attempting to lower the cost of batteries in cars. This is aimed at helping to reduce the overall cost of the finished products (Nickolas, 2019). Rather than making the purchase from the Panasonic, Tesla is attempting to establish the production of its own batteries to make the car more affordable to individuals and customers. Additionally, the current goal of the company is to expand its charging stations networking globally. Notably, this will be critical in enhancing the overall customer satisfaction and service quality. This will ensure that the company satisfies customer’s concerns as a stakeholder’s group.

Conclusion

Employees forms the last group of the Tesla’s stakeholder. The impact of the company’s performance and productivity is greatly influenced by the employees b(Nickolas, 2019). Because of this reason, it is therefore critical for the company to accommodate its employees through the provision of a competitive salary package along with special training programs that will allow its employees new and valuable opportunities for the expansion and growth. In my view, this strategy will influence the group of stakeholders.

References

Nickolas, S. (2019). Top Three Tesla Shareholders. Retrieved May 28, 2020, from https://www.investopedia.com/articles/insights/052616/top-4-tesla-shareholders-tsla.asp