Tesla Company and its Business Ethics

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Tesla was founded in 2003 by a group of engineers that all had the same idea of trying to make the world a more eco-friendly and safer place. Since being founded Tesla has broken records and broken-down boundaries in the auto mobile world. They have created a car that is world's bestselling pure electric vehicle and also making it one of the safest automobiles. Their goal of they wanted to accomplish was to let people know that they do not have to compromise anything in order to drive electric. The people who were the founders of Tesla also wanted to let people know that electric cars are better than the environment, faster, and more fun to drive than any other gasoline car. Not only does Tesla build electric cars, but they also provide a clean energy product that is safer and healthier for the environment. Tesla is indeed impacting the world through its business model, social impact, and ethical value.         

Tesla makes their vehicles in Fremont, California in its factory. This is where the vast majority of the vehicle's components and body parts are also made. Tesla's goal is employee safety and having factories that a ran safely and smoothly. To achieve this goal Tesla is taking and acting on an extremely proactive approach to safety. They are requiring that the production employees must participate and be a part in a multi-day training program before they ever set a foot on the ground in the factory. After they have completed this, they continue providing on-the-job training and conduct track performances daily so that improvements can be made in a timely manner. The result is that Tesla's safety rate continues to improve while Model 3 production ramps.         

Tesla Model 3 is quickly becoming one of the best sellers. This model is affordable, reliable, and have extremely high-performance ratings. However, Tesla is in the works right now of making a car even better than the Model 3, called the Model X. This model with have full air pilot capacity and fully electric. With Tesla in the works of building its most affordable, safe, eco-friendly car yet, Tesla continues to make products that are accessible and affordable to more and more people. This ultimately will accelerate the advent of clean transport and clean energy production.        

The business model for Tesla is selling, servicing, and charging its electric vehicles. Tesla goal is to have a positive impact on the environment because Tesla believes that the faster the world can stop depending on fossil fuels and can move toward a zero-emission future, the better. Tesla believes that every one of there customers deserves the best which is why they do not have outrageous prices so that everyone has the opportunity to be safer and eco-friendlier with their vehicle choice.       

One thing about Tesla is that they are not apart of auto union. The purpose of an auto union is basically to give the employees the opportunity to earn a fair wage, be treated fairly, and protect them if they were to get fired. Jaimie Willis, who used to work at the Tulsa International Bus Plant said that he is against the auto union. He is against it because if a company is already treating its employees fairly and giving them the fair wage, as they should be doing, then there is no need for a union. This is a controversial topic thought as there are some people who think that a auto union is important and necessary.        

The social impact that Tesla is that it will kill business like Cab companies or any other driving jobs because Tesla is staring a self-driving vehicle , Model X, which will eliminate the need for these services. It also will have an large impact on other car companies and factories. However, Tesla could open a lot of jobs as well. They need several people for just one car like a technical person to figure out all the wiring, an electrician to get the electric legists taken care of, a person to build the frames, and so on and so forth.        

The foundation and almost immediate success of Tesla has led to many different social and business destruction or complications. For example, the impact that Tesla has had on society mainly is due to the energy efficiency and popularity by the public of alternative solutions for fuels. As Tesla gains more attention and gets new and press, the growth and popularity of energy efficient cars and alternative fuels grows. This, one would say, can only have a positive effect on global climate concerns. The energy efficiency that a Tesla electric car is car is way above the average of a gas operated vehicle. This implies that energy efficient cars, particularly electric cars, are becoming more mainstream or modern and relevant to the average costumer. The impact that Tesla has on businesses and corporations is also becoming more noticeable as time goes on and Tesla gains popularity throughout the whole world.        

When Tesla first introduces a luxury model of electric car means loss of sales for luxury brands like Lexus, and BMW. Other car companies like Toyota and Nissan are having difficulty keeping up with Tesla. Toyota is trying to attempt and improve the Prius. Nissan also has their newest model, the Leaf. None of these however, are getting them close to Tesla. Tesla has created a more competitive market for energy-efficient cars around the world        

The ethical analysis on Tesla is that it is impacting the world for the better because it is helping save the environment by reducing the amount of chemicals and toxins we as humans put in the air. However, with any company there are downfalls. On late Tuesday December 4, 2018 Tesla was offering millions of dollars in an all-stock deal to acquire SolarCity Corporation. Shares of Tesla sank by a little over ten percent on just by Wednesday. This cased a negative reaction on the sell side. A man named David Bechtel, who is one of the three principals of Barrow Funds, mentioned that the prospect of a tie-up between Tesla and SolarCity was extremely frightening because with two companies like Tesla and SolarCity, they are both hungry for money and merging them with cause sever questions to come up. Bechtel had also brought up that his firm had lowered Tesla's share during 2015, because it was wildly over-valued relative to its peer group. Bechtel said that is a little obdured that a company like Toyota for example has been in business and going strong for over seventy years now and they know what it takes to meet the needs of markets and the fact that Tesla will just trade several levels of revenue is concerning to Tesla's investors who take this company and value seriously.        

In summary, Tesla is having a major impact on the world due to the social impact, ethical value, and business model of this corporation. All the founders of Tesla agreed that they want to make the world, safer, and eco-friendlier. They also wanted to let people know that they do not have to compromise to drive electric. Since the founding of Tesla, the company has torn down barriers and made huge stride in modernizing and making the world an eco-friendlier place. Tesla is changing the way that cars are made by making it eco-friendly and much safer. As with any corporation there are negative things about the company, but in the end the company is making a positive impact in the world today by moving us forward.


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Tesla Company And Its Business Ethics. (2019, Aug 06). Retrieved September 22, 2023 , from

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