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Essay / Tesla's Model S, a perfect example of innovation and cost-cutting attitude towards the company
Tesla's first truly mass-produced car was the Model S, a luxury electric car and c is a perfect example of innovation and cost reduction. attitude towards the company. It was launched in June 2012 and became famous in the blink of an eye. It was also selected as the 2013 Car of the Year, after receiving the highest rating ever from Consumer Reports. Say no to plagiarism. Get a tailor-made essay on 'Why violent video games shouldn't be banned'?Get the original essayTesla designed the Model S entirely in-house, using an improved version of the technology developed for the Roadster. Additionally, the batteries were assembled in a rigid pack placed at the bottom of the car, allowing Tesla to be the only car to offer an all-glass panoramic roof. Looking at the Model S as an example of disruptive innovation, the car was completely controlled by software. Additionally, it could be updated wirelessly over a cellular connection and could be used to customize the car's behavior. The level of electronic integration impressed other automakers and was considered a benchmark. The Model S did not have a traditional key but a wireless key fob. When the driver approached the car, the car would automatically unlock and the door would automatically open. Finally, the car started when the driver entered it. The ability to exploit economic ups and downs has been important to Tesla's growth. Indeed, the crisis in the automobile industry allowed Tesla to buy its huge production plant from Toyota for $42 million, financing the operation with a capital injection of $50 million from Toyota itself. With the new factory, Tesla's production is expected to reach 100,000 cars per year, up from 21,000 originally. Additionally, Tesla purchased many equipment at a discount from economically struggling manufacturers. Indeed, according to an article by Alan Oshman published by Bloomberg, Tesla spent less than a third of the billion dollars it would normally cost to get its new factory operational. Tesla also did much of its parts production in-house, making 90% of Model S-specific plastic parts on 3D printers. Furthermore, the Tesla Model S is a perfect example of hidden subsidies (Kerpen, 2015). Thanks to zero-emission vehicle (ZEV) credits (which require manufacturers to build dealerships to sell a certain number of "zero-emission" vehicles each year) Tesla's Model S generated four ZEV credits per unit sold (one credit ZEV is worth $5,000). This way, Tesla was able to sell $20,000 in ZEV credits to other manufacturers for each Model S sold, with the cost borne by buyers of other cars. Ultimately, this amount was even higher because Tesla was able to obtain additional credits. credits, generating three additional credits per vehicle sold by simply demonstrating that its batteries could be quickly exchanged. Tesla thus earned $35,000 per car sold. Elon Musk is definitely a man with a lot of creative ideas (from launching a private space trip to a super train that would cover the Washington-New York route in less than half an hour). ). All of his business initiatives have one thing in common: They probably could not have come to fruition without subsidies from the United States government. Tesla and SpaceX received $4.9 billion in government subsidies, according to data compiled by The Times. Many reviews have.