Tesla Motors Mission and Vision Statements: An Analysis
Apart from making fully electric vehicles and energy storage systems, Tesla also installs and maintains solar and energy storage products. However, Tesla is mainly known for its high performance fully electric vehicles. It was founded in Silicon Valley by a group of engineers whose main purpose was to prove that electric cars could provide better service than the gasoline powered vehicles.
It launched the world’s first premium electric sedan Model S in the year 2012. Tesla cars can be charged at home and so car owners do not have to visit a gas station. In the recent years, the company has focused on increasing its production capacity. The focus of Tesla is energy innovation. It is not just making environment friendly cars but its focus is on helping the world transition to cleaner driving. Below is an analysis of the mission and vision statements of Tesla Motors.
Tesla’s mission is to accelerate the world’s transition to sustainable energy.
The mission statement of Tesla explains the central focus of the company which, as already mentioned in the first paragraph was to prove that electric cars could be better than the gasoline powered ones. The main focus of the company is to help the world reduce its dependence on carbon fuels and transition towards a cleaner world with the help of sustainable energy. Tesla makes EVs and energy storage systems and also installs and maintains solar and energy storage products.
The world is already moving towards electric friendly vehicles and environmental solutions and Tesla is on a mission to accelerate the process. This mission statement appears like a socially responsible mission statement because its focus is on using innovation for the betterment of the world. Mission statements are statements that explain the reason for which a company exists. These statements also provide guidance over decision making and resource allocation in the company in day to day scenarios.
In this regard mission statements must also shed light on other areas of focus like customers, competition, financial position and other key focus areas related to business strategy and performance. Tesla has not included these elements in its mission statement. A mission statement is expected to be specific in this regard so as to provide clear guidance on everyday decision making and resource allocation. It must aid the managers with their everyday decisions and if they align with the company’s mission.
Elon Musk’s (Co-Founder, CEO and architect at Tesla), vision for Tesla is to
Create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles.
This vision focuses on two things. One is brand image and the other is the product. By the most compelling car company it means a company with a compelling vision of sustainable future – a company with a strong brand image and that creates real value. A vision statement is like a course to the future. It expresses the desired future position of a company. However, in this regard too Tesla’s vision statement is less than clear.
Tesla’s vision is to be the driver behind the world’s transition to electric vehicles. However, a company does not exist just to serve the customers. It also exists for creating shareholder value. Tesla’s vision fails to be specific and does not express clearly where the company wants to be in terms of business and financial position and competition in the future. It only clarifies that it wishes to be the leader of the world’s transition to electric vehicles. Again like its mission statement, it is less than specific. A vision must be specific enough while leaving enough space for further amendment in future.