Mentorship Exchange: Company Introduction and Background
BUS 401: Principles of Finance
Sherri Jenkins
Introduction
The company that I have chosen for this assignment is Tesla. Tesla has certainly
had many issues lately including being sued by Walmart and still not meeting production
demand...
The company that I have chosen for this assignment is Tesla. Tesla has certainly
had many issues lately including being sued by Walmart and still not meeting production
demands. However, I have chosen this company not due to its current state of its balance sheet
but rather because I believe in the company and their future success. Teslas mission statement is
to accelerate the world’s transition to sustainable energy (Tesla inc., 2019). The main reason I
chose this company is because of the relatively low competition when it comes to fully
functional electric vehicles while being economically reasonable. Also, Tesla has a massive
ceiling due to the shift towards electrical trucks in the near future and other electrical vehicles. In
m
er as
the next 10-20 years we will see a shift in self driving vehicles and I believe Tesla will have one
co
eH w
of the bigger market shares in this market. When viewing Teslas balance sheet you will notice
o.
that it has lost money this last financial quarter. Tesla is relying heavily on outside investments to
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ou urc
keep up with their production needs. As stated before, the company is also in a dire situation with
the lawsuits due to its SolarCity acquisition while at the same time trying to fix manufacturing
o
aC s
issues within the mostly autonomous construction process. However, I believe that Tesla will
vi y re
succeed when looking at a long-term view. As technology improves the manufacturing process
will keep evolving and at the same time the electrical vehicles, they are producing will become
ed d
ar stu
even more economical. The future expansion into more Asian and European countries will
ultimately lead to a very lucrative investment that will yield high returns. This is the main reason
is
that I have chosen Tesla as the company that I would like to invest in.
Th
Tesla was originally formed in 2003 by American entrepreneurs Martin Eberhard and
sh
Marc Tarpenning and was named after inventor Nikola Tesla (Schrieber 2019). Elon Musk took
over as CEO in 2008 and originally joined the Tesla team as an investor and was on the board in
his first years with Tesla. The CEO is an important position to consider when investing in this
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