Tesla was founded in 2003 by a group of Silicon Valley engineers that aimed at producing all electric cars and the generation of scalable clean energy. Tesla’s CEO Elon Musk set the stage for the future in 2006. Tesla is a company that plans for the future and the future need of the consumer, as they are hoping they can revive lagging interest in car buying, igniting imaginations about a future where vehicles drive themselves (Higgins, 2017). With future needs of consumers comes changes in processes in which Tesla started small and finished big and innovative.
By doing this they have been able to start with high-end vehicle direct sales and finished as producing an accessible, affordable vehicle. Tesla become a leader in its industry because they were able to identify resistance to change, implemented change and can be compared to the theory of the first follower taking a developmental approach to change.By understanding reasons for resistance to change an organization is able to address change differently and communicate such changes in an adequate way. Reasons why change may be resisted are the content or substances of the changes, the process through which change is implemented, and change brings uncertainty. Tesla shows internal resistance in organizational structure change and external by refusing to franchise and through lack of safety (…K….
.). Tesla is a company that sells directly to its customers and cuts out the middle man. Tesla is the maker of the first premium all-electric car. They have shown change and taken charge since 2008 when the Roadster was produced and the company risked bankruptcy (Thompson, 2017). Eight years later they come out with the Model S which sets the stage for the future of automobiles.
The theory of the first follower entails a leader who takes the first follower and embraces them as an equal (Andreatta, 2015). Tesla is the leader that takes the first consumers and creates an image for those who believe in their innovative vehicles. They are now part of the in-crowd and as Tesla grows so do the followers. When Tesla started producing they produced small and expensive and with time and need they mass produced to be more affordable and accessible to other consumers. Tesla became successful once the first follower/change agent came into place and many became aware of the innovative way of driving. Tesla took a developmental approach to change through cost intervention and strategic change (…S…). Cost intervention was shown through the invention of the Model 3 which attempted to attract new customers and expand their market.
Also, the establishment of a gigafactory saved millions and was an investment for Tesla. Strategic changes were implemented through training and leadership development programs. Tesla undergoing change was a big step for the company as this was a company that started small and went into massive expansion targeting new markets. There were reports of massive growth in Tesla’s gigafactory in Nevada. They are currently producing more batteries than any battery factory in the world. Taking a look at the future of Tesla, it is predicted that in five years there will be more factories, mergers will occur, increase in gross profit, and more innovation in the automobile world. Ten years into the future and Tesla will be a leader in the auto world, dominating the market over gas and diesel.
Fifteen years, they will be one of the top five automakers in the world. By being able to adapt to change and needs of consumers and by employing innovation, Tesla has become a leader in their market.