Introduction
Global warming is a significant challenge in every part of the world, especially the industrialized nations. Countries experiencing global warming challenges specialize in economic activities where emissions from industries and vehicles have a significant impact on the environment. Nations manufacturing internal combustion engine cars pollute the natural ecosystem resulting from changes in the climate (Günther et al., 2015). The vehicles release Carbon dioxide and other common greenhouse gases, leading to an extreme increase in the earth’s surface temperature. Countries have come together to formulate policies and guidelines, such as the Paris Emission Agreement to curb climate change.
Tesla Electric Cars and Climate Change
Paris Emission Agreement proposal included adopting an efficient measure to reduce carbon dioxide and greenhouse gases released. For this reason, the use of electric vehicles becomes the best suggestion for tackling climate change. Most governments in international markets, such as China, Japan, the European Union, and the U.S. actively champion electric vehicle manufacturers to replace the internal combustion engines. At this point, Tesla Company comes in as the leading manufacturer of electric vehicles (Lutsey et al., 2018). Tesla is an electric vehicle manufacturing company founded in 2003 by a group of engineers whose main goal was to promote sustainable energy in the transport sector (Brown et al., 2010). The company builds both electric cars and clean energy generation and storage commodities.
The reduction of carbon dioxide concentration in the atmosphere requires different countries to address energy and its consumption. Tesla Company focuses on creating a comprehensive transportation and energy ecosystem involving solar and energy storage to produce electric vehicles (EVs) with no emissions (Lutsey et al., 2018). Research indicates that charging electric cars is less carbon-intensive and becomes beneficial for the environment (Brown et al., 2010). Electric vehicles replace coal energy use, which has adverse effects on the natural ecosystem due to global warming.
Tesla Electric Cars And Renewable Energy Application
Industries are adopting the electric vehicle manufacturing strategy as the cleanest renewable source of energy. According to an annual production report released by Tesla Company in 2018, renewable energy sources have grown fast at an approximation of 43% (Tesla, 2018). The main reason for using renewable energy sources is that they are sustainable and more cost-competitive in the market than the resources produced from fossil fuels. Electric vehicle customers install solar panels and energy storage solutions in their homes, reducing electric vehicles’ lifetime carbon footprint (Tesla, 2018). Installation of solar panels and fast-charging stations in public places are essential strategies that solve global warming challenges.
Tesla Batteries and Climate Change
The most significant contributors to climate change are the raw materials used to manufacture electric vehicles and internal combustion engines. While internal combustion engines are constructed to work on fossil fuels, electric cars are installed with batteries (Lutsey et al., 2018). Tesla Company designs battery packs that can make the car last longer than internal combustion engine cars on the roads.
The company designs batteries that last for one million miles or four to five thousand charging cycles (Lutsey et al., 2018). The comparison is made against a standard vehicle that wears out after two hundred thousand miles in the United States and one hundred and thirty thousand miles in Europe. A single electric vehicle battery is designed to utilize one-million-mile coverage, hence reducing emissions per vehicle produced (Brown et al., 2010). The application of electric cars’ batteries helps curb the issue of climate change.
The owners can recycle batteries designed for electric vehicles. Carbon emissions are further reduced through the process of recycling as the battery pack is captured and reused (Tesla, 2019). The entire recycling process reduces the need for mining raw materials and the emissions associated with mining. Some 48 kg of lithium are usually extracted from a single LIB battery; this process costs 1000$ (Gianesello et al., 2017). Tesla Company manages its batteries by designing them to outlast the cars.
Tesla’s Electric Cars Supply Chain
Analyzing electric cars’ global supply chain and determining electric vehicles’ status in the market is an integral part of this paper. The market size for electric vehicles is enlarging, and there is a growing number of new guidelines for safety, vehicle emanations, and innovative advancements. The standard acknowledgment for electric vehicles can be credited to Tesla Motors Inc. (TSLA) and its remarkable action plan. This involves all the industry sectors, from raw materials and car production to cars selling in the global market.
Changes in demand and availability of raw materials directly influence the output of electric vehicles. This involves both trends and changes in the market’s growing demand for electric cars (Deloitte, 2017). Tesla Company’s leadership in the production of electric vehicles and its excellent action plan is this discussion’s point of reference. The general observation regarding Tesla Company’s supply of electric cars is that an increase in demand requires an increase in invested capital (Gianesello et al., 2017). Research indicates a rise in demand for electric cars by citizens from the United States of America, China, Japan, and the United Kingdom.
Global sales of battery-enabled electric vehicles and plug-in hybrid cars contribute to increased sales of electric cars.
Tesla Company’s innovative model of business boosts its competitive advantage in the market. The electric car manufacturing company stays a threat to other competitors in the global market. An innovative business model occurs where Tesla Company develops vehicles using the same strategy to design product software (Lutsey et al., 2018). Electric cars are installed with unique hardware which improves the daily functionality of the vehicle. Software installation strategy avoids continued oil changes and muffler replacement which is common in internal combustion engine cars. Another innovative strategy is that Tesla Company makes it easy for customers to buy their cars.
The strategy involves customers accessing their favorite electric car models online (Tesla, 2021). The buying process is further made easy as customers add their chosen features, make financial deposits, and then organize when to pick up the car. Buyers become comfortable with this process of purchasing cars, unlike ordinary cars, whose purchasing procedure is always tiresome.
Tesla Company’s innovative battery technology plays an essential role in boosting its competitive advantage in the global market. Their batteries are designed to minimize total ownership costs over the lifetime of the vehicle. There are fewer battery parts in electric cars – only 20 parts compared to 2000 parts for a typical internal combustion engine (Gianesello et al., 2017). The fewer battery parts reduce the total costs incurred in owning the cars. More ownership costs reduction is made by Tesla by investing in battery manufacturing technology (Brown et al., 2020; Gianesello et al., 2017; Tesla, 2019). This technology plays a substantial role in reducing the cost of the vehicles and the CO2 emissions related to production, including supply chain production and transportation.
Tesla Company is adaptive to changing environmental trends, global environmental issues, and suggestions. Electric cars have become beneficial in solving cases of climate change. The benefits exist in electric cars’ features, such as their ability to reduce air pollution (Günther et al., 2015). Tesla supports ‘green’ economic mechanisms aimed at reducing air pollution on roads and Green financial strategies from current trends in global markets.
Nowadays, countries that manufacture electric vehicles experience disparities in the global market. Discrepancies occur in sales made as the nations with huge markets make huge sales while those countries without good policies get fewer opportunities from the sales made (Lutsey et al., 2018). Other barriers to the supply chain are customer-based when people have weak attitudes toward electric vehicle manufacturing (Brown et al., 2010). The weak attitude is connected to severe charges on infrastructure. Experts recommend that EV companies focus on five areas to boost their businesses – brand, customer experience, production strategy, talent, and business model (Deloitte, 2017). Considering the growing demand for EVs and Tesla’s leading position in driving range opportunities, some subtle improvements can ensure improvements in customer attitudes.
Some countries experience a shortage of effective government incentives and emission regulations. Domestic manufacturers are limited from the external competition when government incentives and emission policies lack in their countries (Lutsey et al., 2018). In some nations, consumers go for internal combustion engine vehicles instead of electric vehicles. The concerns are related to the driving range, cost premium, lack of EV charging infrastructure, and time to charge (Deloitte, 2017). Another reason for this choice is that governments do not have the proper infrastructure to support electric vehicle use.
Tesla’s Battery Technology and Supply Chain
Tesla electric car manufacturing company has focused on creating its battery cells for electric cars. Achieving this objective has seen Tesla partner with companies like Hibar Systems. Hibar Systems is a company based in Canada that manufactures automatic batteries used in electric vehicles and other electrical goods. Battery features for electric cars include lithium-ion, which works well in vehicles (Lutsey et al., 2018).
Tesla Company’s chief executive officer, Elon Musk, collaborates with other companies producing raw materials for battery manufacture. Tesla has struck deals with California-based Maxwell Company which specializes in electrodes for lithium-ion production. Striking these deals with different companies helps Tesla compete effectively in the global market. Flexibility by the company’s CEO is helping them stay competitive against internal combustion engine car manufacturers.
Electric car manufacturing companies are moving at high speed to produce their batteries while remaining active in the market. Latest reports have shown that Tesla plans to make $25,000 electric vehicles that can effectively compete with internal combustion engine cars (Brown et al., 2010). An increase in lithium demand by Tesla would make companies manufacture it and increase lithium investment (Brown et al., 2010). The demand is expected to increase further when more companies join in electric car production. The graph below shows how global lithium demand will be influenced by electric vehicles.
Boosting the Electric Cars Supply Chain
Tesla focuses on advanced technology and innovation investment to facilitate a consistent supply of electric vehicles. Electric vehicles are major technological contributors to the automotive industry (Brown et al., 2010). They contribute to reliable, sustainable development as they produce lower greenhouse gases, less pollution of air, and most importantly, increase job opportunities for citizens.
The enabled working environment influences the increase in sales and the number of electric vehicles produced by the Tesla Company (Brown et al., 2010). Enabling the environment involves sustainable market policies and regulations that support electric cars’ existence and sales growth in the global market. Different governments encourage their citizens to adopt the use of electric vehicles while abandoning internal combustion engines. The mechanisms are made possible through the adoption of practical guidelines and policies in their countries (Brown et al., 2010). Some of the procedures include the government offering effective financial incentives for vehicles. Examples of financial incentives are tax credits and discounts to taxpayers.
Another policy imposed by the government is conducting fee eliminations on emissions testing. Allowing Tesla electric vehicles to park freely in urban areas is another beneficial policy for the company (Brown et al., 2010). There are plans by various governments such as China and Germany, which provide prime local markets for electric cars. These policies only work on electric vehicles and not the infrastructure. For this reason, raising infrastructural revenues does not affect the growth of electric vehicle markets.
Favorable market policies have seen sales of electric vehicles from Tesla Company increasing in the United States, Canada, China, Finland, Germany, India, Netherlands, Sweden, Norway, the United Kingdom, and Mexico. According to Deloitte research, China appears to be the leading producer of electric vehicles (Deloitte, 2017). China is followed by the European Union and the US, which comes third in manufacturing Tesla Company’s electric cars (Brown et al., 2010).
The provision of a sustainable and enabling working environment makes China the leading manufacturer of Tesla Company’s electric vehicles. The company’s Chief Executive Officer, Elon Musk had a dispute with the US government on electric car production.
The state is reported to have refused to open Tesla Company’s electric vehicles manufacturing branch located in Fremont. For this reason, the company’s boss has resorted to China as a significant investing location where the working environment is conducive (Donnan, 2020). The government offers favorable consumer incentives appealing to Elon Musk and the entire Tesla Company electric car manufacturers (Brown et al., 2010). Employment opportunities increase in China as a result of teamwork between Tesla Company and the Chinese government. The economy of this country is growing because of collaboration with electric vehicle producers.
China’s more significant population is made of many potential customers having a great impact on electric vehicles’ demand and supply. Unlike China, the United States, and the United Kingdom, Japan still has a significant share of internal combustion engine vehicle manufacturing. The main reason for the delay in transition is their vast profits from sales of climate-friendly gasoline-electric hybrid vehicles.
Congo and the Electric Car Supply Chain
The Democratic Republic of Congo is known for cobalt mining, an essential mineral used in making electric car batteries. The most dramatic part of the Congo mining process is that people use their own hands to dig tunnels underground. The use of needles to dig tunnels is generally risky. The collapse of bright red earth soil is familiar in these places. Children as young as 17 years old are forced to search for cobalt to get a daily meal.
The living standards of miners are abysmal as they exchange cobalt for free food and accommodation to survive. Congo tends to fit the electric car supply chain paradigm through the contribution of raw materials for battery making. An increase in the supply of cobalt from Congo mines increases the competition in electric car manufacture. For this reason, many investors from China and South Korea have thought of investing in Congo, but because of the lack of proper infrastructure, they are scared.
Noteworthy, in the 2019 report, Tesla Company says it is aware of human rights violations in mining spots in DRC. Tesla promised to take care of the ethical side of cobalt mining by ensuring its suppliers adhere to OECD Guidelines (Tesla, 2019). The company checks the mining conditions of its suppliers from other regions. Moreover, Tesla asks its battery suppliers to audit their sub-suppliers to comply with the Guidelines.
Brown Coal Fire Station
The brown coal fire station has a different and unique way of solving the issue of climate change. Incorporation of CO2 catch and capacity (CCS) into existing and new coal terminated force stations is viewed as a method of essentially lessening the fossil fuel by-products from fixed sources. The extra energy used to catch the CO2 can be packed for transport and storage. The power station is empowered to build its energy effectiveness by utilizing poor quality warmth, giving less carbon escalation and conceivably lessening the expense of energy creation. The entire process helps to deal with the problem of climate change.
Compare and Contrast a Traditional Car Marker “Mercedes”
The safety and pricing of vehicles is an overwhelming issue as it is subject to fixed expense, economies of scale, and technology. Rivalry and shopper requests likewise assume a significant part in this. Right now, a considerable percentage of automobiles see value decrease as a decisive key move for endurance dissimilar to the conventional carmaker Mercedes which focuses mainly on safety. For value decrease, organizations need to take a series of choices at each phase of production and marketing, beginning from overseeing elements of production and inventory network to negotiating with vendors.
Recommendations
The use of electric vehicles has emerged as the most reliable solution to climate change. To maintain its market position, specific new changes and regulations need to be applied for market sustainability. Trade is one of those strategies that can boost electric vehicle efficiency, hence a sustainable solution to global warming and climate change in general. Different countries are leading in manufacturing electric vehicles compared to cars with internal combustion engines.
Electric Vehicles: The Role and Importance of Standards in an Emerging Market
Adoption of this strategy by nations helps in reducing carbon emissions to the atmosphere. The application of right and effective government incentives and regulations on emissions can help fight the issue of global warming. Another recommendation is on resources where a different government should invest in the production of electric vehicles. Investing in electric vehicle manufacturing is critical in tackling major climate change issues.
Governments should be ready to set aside funds to help in empowering members of the public about the use of electric vehicles and, at the same time, ensure improved dynamic infrastructural development to support electric cars in the country. It is good to have parking stations, charging stations, and enough security to facilitate the use of electric vehicles. The government needs to invest both in the entire stages of electric vehicle production and sell in the market. Selling involves establishing a favorable working environment with the right incentives and benefits for entrepreneurs. Through these various measures, a country can play a critical role in fighting the problem of global warming.
Conclusion
Reaching the goal of environmental sustainability can never be achieved by a single individual or a country. It requires a combined effort through collaborations and partnerships to solve climate change. For this reason, different countries come together through conventions and meetings to exchange ideas and make recommendations on climate change issues. Therefore, using Tesla company electric vehicles becomes the best decision for tackling climate change’s major problem.
References
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Günther, H. O., Kannegiesser, M., & Autenrieb, N. (2015). The role of electric vehicles for supply chain sustainability in the automotive industry. Journal of Cleaner Production, 90, 220-233.
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