Contemporary Growth Challenges For Tesla Assignment Sample

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Introduction of Contemporary Growth Challenges For Tesla Case Study

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The modern generation is very advanced with cutting-edge technology. Tesla is one such company which is very focused on providing the best type of technical service to their customers. The company is very renowned for making electric luxury cars which are backed by advanced technology making the company gain a huge amount of brand recognition international in a very short duration of time. The company Tesla has been founded in the year 2003 and is based out of the US. The company has been able to make so much growth rapidly because of the strategy that the company uses for its marketing and also different other factors associated with it.


(Source: Lambert, 2022)

The company is also looking forward to seeking the same amount of growth in both its reputation and the economic growth of the company. In order to have such kind of rapid and steady growth leadership styles and also different strategies are very much important for the continuous growth of the company. In this study, an explanation will be provided based on the current state of the organisation and also using 5 important dimensions of business that business will be accessed for understanding the stability of the business both financially and as well as environmentally sustainable. In addition to it, a recommendation will also be provided so that fulfil those gaps in the organisation. This recommendation will also help in the further growth of the business in the upcoming years.

The current state of organisation

Tesla is a very rapidly growing company which has been founded in the year 2003 and since then the company has kept on expanding in different countries around the globe. The company is renowned for its EV vehicles and also the cars come with advanced technology features which are not being offered by any of its competitors. Also, not to mention the company sells their cars at a very reasonable price point which is really good from the perspective of a buyer. The company is mainly based out of the US and as the cars run completely on electricity it doesn't produce any pollution thus it doesn't affect the environment as well. This is the reason why the company is so much being supported by the government (Wouters, Gierlichs and Preneel, 2021).

 The government appreciates any business which helps in the reduction of pollution and less use of natural resources for travelling in cars. The company’s headquarters are in California and the company is set as the most important valuable car brand in the complete globe in the past year. The company is also said to have a growth rate of 157 per cent from the last year and is also the fattest brand that is growing worldwide. The company is able to achieve these heights of success only by having good leadership in the organisation and also by providing the employees with all the essential items that are required for their work. Some of the important which can further help in the growth of the company will be discussed as well (Fries, Kammerlander and Leitterstorf, 2021).

Leadership: Leadership is very important for the growth of any company. The company has been growing at a very rapid rate and this is only possible because of the good leader that the company has. The CEO of Tesla Elon Musk is a very good leader and very much dedicated. With the help of his leadership, it is only possible for company Tesla to become such a valuable car brand within a very short period of time (Perkins and Murmann, 2018). The company used to follow the transformational leadership style in which the employees are being treated with rewards and given their own space for their assigned work. In this type of leadership, the leader gives more importance to an employee for being innovative and at the same time creative in their workplace. A Leader is someone who provides the vision to their team members which helps them in better understanding of the goals that they are aiming to achieve.

 Transformational Leadership

(Source: Transformational Leadership, 2022)

A leader is also responsible for motivating their team members by giving them any sort of reward and also making them understand that they are important part of the company. It is the responsibility of a leader to inspire their staffs because without the motivation and inspiration in the leader making a business successful is very tough (Fries, Kammerlander and Leitterstorf, 2021). A leader should also make sure that all the essential items are being provided to the employees according to the requirement of the work. The company can even seek more better growth percent by indulging their existing leadership style with a new one such as Transactional leadership. In this type of leadership, the productivity of the employee increases as they are often being rewarded for their work and sometimes being punished for not able to do their work on time. This leadership style can further help in the growth of the company (Kalsoom, Khan and Zubair, 2018).

Autonomy: Autonomy in workplace is very much important. Autonomy here refers to as giving the employee to do their own tasks according themselves. Autonomy also helps an employee to work with a more innovative and creative way. Even though the leader of the Tesla allows their employee to work freely in their task that are being assigned to them. Still, it is very necessary for an employee to also be innovative and creative. When an employee will work in a more creative and innovative way then they might come up with some unique ideas which will be very much fresh to the industry and also will benefit the company with a huge amount of profit (Crews, Brouwers and Visagie, 2019). It is very important to have autonomy in the work place because everyone have their own way of getting things done and with the principles of autonomy it will rather even help more employee to work independently without the instruction from the higher authority.

This will lead to giving the employees a comfort zone where they can open up after getting the assigned and then later on can do the work according to the given deadline but at their own pace. When the employees will be given to work on their own and independetly then they will not be having any kind of mental pressure of the job and at the time human brain works to their highest efficiency. This will eventually help the employees to indulge their work with innovativeness and also with creativity. Even though sometimes being innovative and creative in the workplace might not always be fruitful but it will at least give the employees a scope to work independently and come up with better solutions (Slemp et al., 2018). It is also very necessary for any company for their employees to be innovative and creative because the generation of now is very fast changing and if Tesla have to come up with the industry leader then they also have to come up with new and better technologies for their customers which they already have been doing.

Structure: The company Tesla has a very complex organisation structure. The CEO of the company is a workaholic and often deprives his sleep because of work and it has also been found that many employees directly report to Elon Musk which is very high as compared to the CEO of organsisation as big as Tesla. The company is said to have a unique organisational structure. The structure of the company Tesla can be said as a divisional and a very flexible structure (Chadwick, 2021). This type of structure has brought a lot reputation and brand recognition but some changes in the organstional structure can help the company grow in a better and more effective way. The organsition Tesla is a very big organstion and is also expanded in different other parts of the globe. The most appropriate structure for a company this big will be the hierarchical structure. This structure consists of a top most authority that the chief executive officer and under his guidance there will be senior managers. The senior managers will be guiding the assistant manager and the assistant manager will be guiding directly the workers of the company. This type of structure will further help the company to become a more sustainable one both financially and as well as environmentally (Zhang and Parker, 2019).

Strategy: It is very much important to have a good business strategy before acquiring any new market or even planning for future endeavours. A business strategy is being required for perfect execution of the plan to reach the goal of the business. A strategy provides the basic outline and structure of the entire plan and how to apply the strategies in a proper way to get to the goal with more accuracy and more success. A business strategy is very much essential for the growth of the business and it is also very necessary because this strategy will help in becoming the business a successful one (Qiu et al., 2019). There are many business strategies which can be used for a better execution of the plan and also better understanding of the market can be gained from various business strategy. Growth strategy is a good business strategy this suggests that when any business needs to cope up with the competitors of the industry then they have to keep on introducing new product or at least new features to their existing product in order to make it look more attractive and it will also help in acquiring more customers leading to the growth of the business financially (Olson et al., 2021).

Communication and Positioning: The communication and positioning of a brand is very much required because this the only thing that is required to influence the customers and attract them towards the products offered by Tesla. The ability of the company to connect with their customers and even more new individuals is the ultimate goal of any which is the basic need for the growth of the company. The brand Tesla should be able to communicate with the audiences more with various sort of modes and different types of platform. This will lead to more potential traffic to their website and product as well (Kumar et al., 2021). Positioning here refers to as the human connection with the brand with the help of various types of images from the brand, also in words and sounds as well. This will help in the better communication with the customers those who are willing to buy the product from the company Tesla. This communication and positioning will help the company in making a better one in terms of connection between humans and the brand and as well making it will help in the sales of the more cars of the making it a more sustainable one.

Future recommended state

The company Tesla is a very organsisation and is founded in the year 2003 and since then the company has been making rapid growth and have become massive in size in terms of an orgnation. This all has happened in a very short period of time because of the company’s strategy and good planning as well. Even though the company has made so much progress but there are still a few points which needs to be discussed and recommended for the betterment of Tesla.

Leadership Style: leadership style creates a lot of influence in any organsaiton and a good leadership style is very much important for the growth of the company. The company can make good progress in work if provided proper vision of the goal and motivation. The leadership style that is being in the company Tesla is transformational but if the leadership can be changed to transitional leadership then it will be more helpful for the organsiation because it will increase productivity of the employees in the organsisation. Transactional leadership suggests that employees should be rewarded for their good work and also should be punished if they are not able to do the work within the given this will increase the efficiency of the employees and the organisation will be benefited equally.

 Transactional Leadership

(Source: Transactional Leadership, 2022)

Structure: The current structure of the company Tesla is very much complex and it is not that specific but it can be said to be as flexible and divisional structed. This structure helps a lot for the growth of the company but it is also very understanding the size of the organsation. Tesla is a very big organsition and for organsiation this big, the hierarchical model is the best suitable for Tesla. As this model consists of the topmost higher authority that is the chief executive officer and under his guidance there are seniors’ managers and under them are the juniors and below them are the workers (Chadwick, 2021). This type of structure for the organisation will help in the betterment of the company and also increasing the working productivity. This structure will help in many for the company as this structure is very much well organisaed and well monitored and that is the reason that it will help the company to grow because there will always be supervisor to supervise their juniors and these supervisors will be reporting to senior managers. The senior managers will be reporting directly to the CEO of the company and thus it will be a more organsised as compared to that of flexible and divisional structure. 

Hierarchical Organisational Structure

(Source: Hierarchical Organisational Structure, 2022)


In this study a discussion has been made on the company Tesla. Tesla is a very renowned and reputed brand which has gained a good brand recognition in the international markets and is assumed to be one of the most valuable car brands of this generation. The business is well known for producing high-end electric vehicles that are supported by cutting-edge technology, which has helped it quickly establish a strong international brand. Tesla was established in the US in 2003 and has its headquarters there. The marketing approach that the company employs and various other elements related to it are to thank for the company's ability to grow so much so quickly. In this study the current state of the organisation has been discussed. In addition to it also some important points related to the growth of the company has been discussed in the study such as the leadership factor, the structure, the autonomy in workplace, strategy and communication and position of the company. Further some recommendations have been provided for the betterment of the organisation based on the current state and keeping the growth factor of Tesla keeping in mind.


Chadwick, J., 2021. The atomic division: The Australian Army Pentropic experiment, 1959-1965. Australian Army Journal, 17(1), pp.45-60.

Crews, E.R., Brouwers, M. and Visagie, J.C., 2019. Transformational and transactional leadership effects on communication styles. Journal of Psychology in Africa, 29(5), pp.421-428.

Fries, A., Kammerlander, N. and Leitterstorf, M., 2021. Leadership styles and leadership behaviors in family firms: A systematic literature review. Journal of Family Business Strategy, 12(1), p.100374.

Hierarchical Organisational Structure, 2022. [online] Available at: <> [Accessed 15 September 2022].

Kalsoom, Z., Khan, M.A. and Zubair, D.S.S., 2018. Impact of transactional leadership and transformational leadership on employee performance: A case of FMCG industry of Pakistan. Industrial engineering letters, 8(3), pp.23-30.

Kumar, S., Sureka, R., Lim, W.M., Kumar Mangla, S. and Goyal, N., 2021. What do we know about business strategy and environmental research? Insights from Business Strategy and the Environment. Business Strategy and the Environment, 30(8), pp.3454-3469.

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Perkins, G. and Murmann, J.P., 2018. What does the success of Tesla mean for the future dynamics in the global automobile sector?. Management and Organization Review, 14(3), pp.471-480.

Qiu, W., Patil, A., Hu, F. and Liu, X.Y., 2019. Hierarchical structure of silk materials versus mechanical performance and mesoscopic engineering principles. Small, 15(51), p.1903948.

Slemp, G.R., Kern, M.L., Patrick, K.J. and Ryan, R.M., 2018. Leader autonomy support in the workplace: A meta-analytic review. Motivation and emotion, 42(5), pp.706-724.

Transactional Leadership, 2022. Purple Transactional Leadership Strategic Analysis | Strategic Analysis Template. [online] Available at: <> [Accessed 15 September 2022].

Transformational Leadership, 2022. [online] Available at: <> [Accessed 15 September 2022].

Wouters, L., Gierlichs, B. and Preneel, B., 2021. My other car is your car: compromising the Tesla Model X keyless entry system. IACR Trans. Cryptogr. Hardw. Embed. Syst., 2021(4), pp.149-172.

Zhang, F. and Parker, S.K., 2019. Reorienting job crafting research: A hierarchical structure of job crafting concepts and integrative review. Journal of organizational behavior, 40(2), pp.126-146.

Any appendices

  1. This is a picture of Tesla.
  2. It shows that the cars are cgarging.
  1. Transformational Leadership.
  2. Different parts of the transformational leadership have been shown.
  1. This shows transactional leadership.
  2. The different parts of the transactional leadership.
  1. This figure shows the hierarchical model.
  2. This shows the different other structure of hierarchical structure.
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