Tesla Lithium-Ion

Tesla Lithium-Ion

Tesla is one of the local companies that have had the most elaborate vision and a strategy to achieve its objectives. Its strategy has been a topic of interest in management and economics for many years now. The recent contract to supply California power Grid with over 20 megawatts of power from lithium-ion batteries is just one of the major boosts to the vision of the company and a clear depiction of what to expect in the future[1]. This paper describes the current market conditions for lithium ion. Through an analysis of the factors that contribute to the conditions and the situation of the company, the paper will also provide a prediction for the future of the company.

Tesla is an energy company that has for many years dealt with the provision of batteries for motor vehicles and other power engines. However, it has been in the company’s vision to diversify and get into the larger energy industry and provide clean energy to the communities[2]. It is, therefore, a well-timed strategy. The current market condition for the company is quite profitable. With the intended popularization of the electric cars and the already ongoing clean-energy project, the company is improving both its reputation and market share in both industries.

There are several factors that have contributed to these conditions. First, there has for long been a need to have clean-energy sources in the country and various states have embarked on strategies to achieve this. Tesla lithium-ion, therefore, comes into the picture at the right time. The company has been structuring itself towards a familiar future, and when such an opportunity arises, the best move is to take it. Secondly, the company has enough experience in dealing with clean energy having conducted research and studies on the electric car. The market conditions do not, therefore, surprise the company as it has been prepared for this. These factors make the current condition stable and quite promising as the company is highly likely to be the first of the kind. It will, therefore, gain from the contract both regarding revenue and its reputation among like-companies.

The current situation of the company is profitable and very stable. This to the investors is an indication that the company is starting to rise above the others in the industry. The future of the company in the just-opening clean energy industry is very promising. Although as a first it is likely to face some challenges and hitches, the vision has been strategized and the company is likely to come out strong. As the industry grows and the demand for clean energy expands beyond the borders, the company will be in the best position to provide the necessary service. The current contract will improve the ability of the company to perform in such a situation. Using this contract as a learning opportunity, the company will be able to create for itself the best strategies and structures to handle even better and larger projects in the future.

[1] Tom Randal, “Tesla Wins Massive Contract to Help Power the California Grid,” Bloomberg, 2016, http://www.bloomberg.com/news/articles/2016-09-15/tesla-wins-utility-contract-to-supply-grid-scale-battery-storage-after-porter-ranch-gas-leak.

[2] Ibid.

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