Results

Sustainability Stage and Strategy:

Tesla Motors Inc. is aware of the significance role conventional cars play in global warming. Its sustainability stage is stage four which is the new business model. Their new business model aim is to make products that are more environmentally and socially favorable while focusing on making revenue. Above is a table we made describing Tesla Motor business model

In order to be part of the green movement and reduce the greenhouse effect, Tesla Motors Inc. uses an eco-branding sustainability strategy. Based on our research, through this strategy, Tesla’s products have instant torque, incredible power, and zero emissions. All its products have been created in order to accelerate the transition to sustainable transport.

Innovation

One of the most important innovations of Tesla is the battery pack and electric powertrain system; it has enabled Tesla to deliver market-leading range capability on the vehicles at what we believe is a compelling battery cost per kilowatt-hour. The battery packs use custom electric vehicle lithium-ion battery cells and contain two to three times the energy of any other commercially available electric vehicle battery pack, thereby significantly increasing the range capabilities of the vehicles. Designing a electric powertrain that is energy efficiency has required extensive safety testing and innovation in battery packs, motors, powertrain systems and vehicle engineering. The technology includes cooling systems, safety systems, charge balancing systems, battery engineering for vibration and environmental durability, customized motor design, software, and electronics management system to manage battery and vehicle performance under demanding real-life driving conditions. 

Tesla Motors is designing vehicles to enable the cost effective development of the future vehicles. Tesla has designed the Model S with a platform architecture, which compactly positions the battery pack, motor and other elements of the powertrain within the frame of the vehicle. This architecture may form the basis of several future vehicles, including the planned Model X, and enable Tesla to efficiently and costs effectively launch these new vehicle models in the future.
The design and vehicle engineering capabilities, along with the technical advancements of the powertrain system, have enabled Tesla to design and develop zero tailpipe emission vehicles. The Tesla Model S is an electric vehicle that can accelerate from zero to sixty in 3.1 seconds. It can seat up to 5 passengers. Its advance technology includes auto pilot system with a forward looking camera, radar, and 360 degrees sonar sensors with real time traffic. The Tesla Model S, electric vehicle, started deliveries in June 2012 in the United States and Europe.  In 2017 Tesla vehicles plan to expand more into the international market by delivering the Model S to China, Japan, UK and Australia.

Triple Bottom Line:

Triple bottom line is used to measure the impact an organization has on its communities, the effects it has on the planet, and lastly, profit (Molthan-Hill 2014). Tesla Motors Inc. understands how important sustainability is when it comes to having an impact from the corporate social responsibility. Tesla Motors Inc. gets involved and understands how its key factor in the socio-environmental development of the sector in which focus the analysis in 3 dimensions: people, planet and profit.

When we analyzed Tesla through the Triple Bottom Line strategy, the results show that Tesla care for the safety and satisfaction of its customers. Its social benefits include low operating costs, reduced maintenance—which has no oil, transmission fluid, and less brake repair—great performance due to electric torque & electronic traction control, and good handling due to a low center of gravity. They have provided smart software update, full investigation with transport agency when there is an incident and full warranty for the vehicle. When it comes to the workplace, Tesla has satellites offices located in both Los Angeles and Amsterdam. Recently, in Tesla’s Savvy Charity, Tesla opens patents to the public in order to encourage the production of electric cars. Its goal is to help other vehicles companies transition to a more sustainable economy (Forbes 2014).

As previously mentioned, Tesla’s environmental benefits include reduce of pollution--the greenhouse effect, utilization of domestic energy which creates jobs and reduces the trade deficit, and  zero emission. Its renewable energy sources have helped decrease the need for coal fired power plants. Their batteries are non-toxic to the environment.Their new Superchargers are able to provide a rapid recharge for the car within a reasonable amount of time. Tesla also has an extended battery pack that travels up to 300 miles before needing to charge up. In addition, Tesla recycles their battery in UMICORES’s UTH Facility.

Tesla Motors Inc. profit is not very high. According to Ellon Musk, Tesla is not focus on making profit. However, it has abundant revenue of 132.1 million which have helped to the continuing of this movement. Tesla Gross margin is higher than most of its competitors and is approaching the same level has Porsche; resulting in future earning (Seeking Alpha 2014). Its stock price has increased six times from its initial price.

Creating Shared Value:

As previously mentioned, Tesla  creates shared value through their green products; their goal is not about  making profits, but having an impact. Their purpose and focus are to create a company that not only generate revenue but somehow help the environment. We all know how much the humans are destroying the planet and it is affecting the most part of the population, but it also inspires some companies, such as Tesla, to create new products and services that would save us from global warming. Therefore, Tesla Motors Inc. have found an opportunity to create shared value in its industry.

Tesla has revealed a set of new energy products, including a wall-mounted battery that will be sold for use in consumer’s home. The battery use solar energy charge by a solar panel. Energy storage for a sustainable home is products that will change the world consumption of energy since lack of energy is going to be one of the most commons problems that we will have to face.   

Tesla automobiles are built from the way the car looks (an Italian front), the latest technology (mobile connectivity), and impressive speed and performance (to the level of a Ferrari). Tesla combine Three perfect things: Technology, Sustainability and Performance.

Tesla new model, Model S Sedan, has a 5 star rating in all categories of the National Highway Traffic Safety Administration (NHTSA). Some of the safety features the Model S carries eight airbags; most of the car is built made out of aluminum and a battery system that automatically disconnects from the main power source in the event of an accident (prevent fires from occurring). In addition, Tesla’s new model (Model 3) comes with the battery-swap system which allows an individual to switch a depleted battery with a fully charged one in less than 90 seconds.

As far as the local cluster, Tesla teamed up with Chicago’s Radio Flyer to develop a $500 battery powered car version for kids, this shows how important are the children safety is for them. They don’t only care about the environment and energy aspects, but also care about the safety features of the products that they produce. “The Toy Tesla is made up of high impact plastic” (Gerasole, CBS Chicago). They use top of the line material to obtain the best quality products.  Unlike other battery toys, this battery is UL Certified having been used in power tools for years and is not a fire hazard like the hover boards that recently came out.

Global Reporting Initiatives (GRI)

GRI Guidelines	Tesla’s Evaluation	Description
Stakeholder Inclusiveness	Not Met	Sustainability report includes stakeholder engagement in the process.
Materiality	Met	Shows the economic, environmental and social impacts.
Balance	Met	Reports show only positive company outcomes.
Completeness	Met	Coverage of Material aspects.
Timeless	Met	Does not show specific period on events occurring.
Clarity	Met	Information is clear and understandable.

Sustainability Reporting:

We have provided a sustainability report for the year 2015 below. This is an overview of Tesla’s consolidated financial statement. The total revenue is the sum of automatives sales and development services. The revenue was recognized from sales of Model S and the Tesla Roadster, including vehicle options and accessories, vehicle service and sales of regulatory credits. As you can see, both revenue and gross profit have increased every year.  In addition, on their sustainability report, Tesla Motors Inc. have provided their shareholders a very detailed report which provide information on their social environmental performance.

Consolidated Financial Statements (Annual Report)
	2015	2014	2013
Total Revenues	$4,046,025	$3,198,356	$2,013,296
Gross Profit	$923,503	$881,671	$456,262