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Tesla Inc. Structural and Cultural Design


Tesla Inc. has an organizational and cultural structure that aims to empower its workforce to enhance its production and innovation. A company’s corporate culture shows the values and customs of the workers that elicit the workers’ decision-making and behaviors. Employees develop innovative solutions that stand out best in the automotive and energy generation industry. Thus, the firm produces high-quality electric automobiles, solar panels, batteries, and other related products that match the current technological trend. Tesla Inc’s structural and organizational culture optimizes the employees to attain innovative and creative behaviors that compete in the current market.

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Structural Organization of Tesla Inc.

The company’s structural organization is functional to promote a strong culture. The company has workers for structural engineering design, while other groups focus on sales and other services (Siegfried, 2021). Function plays a vital role in grouping the employers in determining the function of the workers. The function based on hierarchy has the following divisions: chairman and chief executive officer, finance officer, global service and sales, engineering, and legal personnel. The centralization principle entails managerial control of the entire company through decisions that the central group makes. Tesla Inc. hardly supports the autonomy of its overseas branches; thus, its headquarter is responsible for most of the decisions for the operations abroad. The company’s main divisions in its corporate structure are energy generation and storage and automotive. These divisions assist in various marketing and strategic campaigns.

Problem-solving culture at Tesla Inc.

Tesla Inc encourages an innovative problem-solving culture that motivates the workers to advance innovative solutions to the current and emerging issues in the market. This creative culture develops advanced electric cars to curb diesel and petroleum engine pollution (Kim, 2020). The company rapidly responds to the trends and variations in the international market through its “move fast” principle (Yasinskyi, p.397, 2017). It develops cutting-edge products that supersede its competitors’ products in the industry. The company’s global focus is to attain sustainable transportation, climate change mitigation, shift to autonomous technology, and promote renewable energy source capture and storage. The firm encourages its employers to think outside the box through the “do the impossible principle”; thus, it recognizes the significance of new ideas and solutions (Yasinskyi, p.397, 2017). The human resource managers train the employees to exceed the conventional limits of creativity and productivity in the automotive industry, therefore offering solutions to transportation and energy needs.

Innovation culture at Tesla Inc.

The innovation culture at Tesla Inc. makes the company develop high-technology products that facilitate customer attraction. The CEO of the company, Elon Musk, supports the reason from the “First Principle” which aims at identifying root factors to solve problems in the real world (Yasinskyi, p.397, 2017). Through the “constantly innovate” principle, the company aims at promoting the continuous nature of innovation (Yasinskyi, p.397, 2017). It continuously develops and researches to improve modern energy storage machines designs. Tesla Inc. has developed the Model S electric car brand, one of the fastest and safest cars customers may use. The managers highly motivate the workers to play a role in innovations entailing the output and its processes. Tesla Inc.’s energy storage machines offer a solution to the problems of using renewable energy sources and optimizing energy utilization efficiency. The human resource department uses training sessions to position the workers to solve current energy-related issues and develop customer-attracting values efficiently.

The company’s culture facilitates business development

Tesla Inc.’s organizational culture facilitates business development in the current world. The organization motivates the workers to feel like Tesla Inc.’s owners (Yasinskyi, 2017). This ownership mindset encourages the workers to adopt accountability and responsibility for their work performance, thus improving the overall quality of the company’s output. The perspective aligns the employees with Tesla Inc.’s objectives, thus attaining its goals. The company also unifies its workers into a team that aims to improve the business. Through this teamwork, conflicts within the organization are minimized as everyone concentrates on the organization’s success. The collaboration promotes synergy in the company’s workforce; thus, the company benefits from employees’ skills and talents to create innovation. The company’s growth and innovation are primarily based on technological innovation.

Tesla Inc.’s culture of enhancing consumer participation

Tesla Inc. promotes consumer participation in its product design and development. It unites its consumers across the globe with its determined mission of changing the world’s transportation, energy production, and consumption. The company’s cultural model promotes different business models that promote its success. It has diversified its range of products to fit into both the transportation and energy industries. The firm has invested in infrastructure, such as a network of supercharger stations, making it easier for Tesla owners to cover great distances. An element of its business model focuses on marketing and product launch techniques. Entailing structural organization, Elon Musk emphasized that communicational hierarchies can hinder effective problem-solving. The company does not primarily regard hierarchy as a fundamental element that enhances organizational success. Instead, Elon Musk emphasized effective communication occurs when people freely communicate when they desire to.

Tesla Inc. in enhancing value creation

The goals of Tesla Inc. in eradicating environmental pollution promote responsibility and accountability among people. Thus, individuals understand that they have a role in protecting the environment (Kim, 2020). The organization supports and enhances value creation among its workers and customers. The partnership the company encourages creates sustainable unity among the employees. Value creation for its consumers is a significant reason the organization is winning against its competitors. The car has safety features, sustainable transportation, and comfort, and there is consumer pride in owning a Tesla electric vehicle. Through a well-designed set of hardware, Tesla vehicles can be improved through over-air software updates (Salgueiro, 2017). When they make slight improvements to their products, other companies tremendously increase the new vehicle prices. Tesla Inc. aims to improve the hardware and software of their vehicles without the customers feeling the significant financial burden of these adjustments.

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The organization has a culture that supports and reinforces the value creation strategy. In matching the current trends, the company decided to improve the hardware set through software updates (Salgueiro, 2017). As a Tesla owner, an individual has a new vehicle through the updates regardless of the years they own it. Thus, the individual does not have a Tesla model year but a vehicle with a software version that depicts how current it is. The software version depicts what the electric vehicle can and not do. An electric vehicle does not have tremendous wear and tear compared to a combustion engine. The latter is under massive stress through combustion putting massive forces on its parts until they need a replacement. An electric vehicle hardly needs an after-sales service and has a long life.


In conclusion, Tesla Inc company promotes a culture that drives innovation in its employees. The human resource managers encourage the workers to be innovative and creative to meet the current automobile market competition. The organization aims to reduce environmental pollution by tapping and using renewable energy. Tesla Inc. encourages consumer participation in its products to meet consumers’ needs efficiently. It effectively competes in the automobile industry by designing safe and speedy vehicles that attract many customers. The vehicles provide value to the customer as they have a longer life and require minimal after-sales repair. The company’s structural and cultural design has significantly impacted its success.


Kim, H. (2020). Analysis of how Tesla creates core innovation capability. International Journal of Business and Management, 15(6), 42–61. Web.

Salgueiro, V. M. (2017). Tesla inc.: electric vehicles are just the start (Doctoral dissertation). Web.

Siegfried, P. (2021). Business Management Case Studies: Pran-rfl, Netflix, Mc Donalds, Google, Tesco, Apple, Coca-cola, Psa Group, Mercedes, Tesla, Toyota, Beximco. Books On Demand.

Yasinskyi, V. (2017). Tesla Inc.: Innovation bears efficiency. Web.

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