Tesla Inc. has a place at the table with companies like Google, Apple and other giants when it comes to corporate culture. It’s understandable why because despite his alleged tendency to alienate people, Tesla founder Elon Musk is a visionary and nothing short of genius. It is clear to everybody that the brand is doing something right. And we believe Tesla company culture plays a huge role in that.
Elon’s ambition and desire to approach things differently have been among the disruptive forces that the business and automobile industries have long needed.
In this article we will explore the Tesla company culture and its features that have both advantages and disadvantages.
A business model based on fan culture
Tesla offers unquestionably unique products, including a range of electric cars that exceed customer expectations. For example, the Model S, which claims to be “the safest and quickest car on the road”.
In addition, Tesla is dedicated to developing technology that will fundamentally alter the way we live. However, the company’s radically innovative business strategy, not any of its individual inventions, is actually Tesla’s biggest innovation, as some critics have noted.
Tesla’s business strategy is unique compared to the rest of the car industry because it:
- transforms the world’s energy production and consumption systems, bringing together supporters and customers from all over the world;
- builds core community of devoted followers and tech experts and markets to them directly without using wholesalers or middlemen;
- expands the range of client involvement in product development and testing;
- invests in infrastructure to let Tesla owners travel farther distances and increase demand for their products (one example of this is its network of supercharger stations);
- expands its product line with logical and practical goods and services that don’t belong in just one market or industry.
Tesla has a devoted following as a result of its fan-focused innovation strategy. In fact, more than 100,000 consumers were prepared to pay in advance to reserve one when Tesla announced the launch of the Model 3.
Differentiating from competitors
Tesla intends to differentiate itself from competitors in the areas it operates in. That includes automobile, storage, and energy generation, by encouraging and empowering its people to think creatively and explore solutions.
Tesla’s management approach and company culture are designed to encourage inventive and creative thinking in its employees on an instinctual level. Why? And it is these actions that will help the organization continue to be effective in supplying the market with goods that others have not yet considered, let alone offered.
The goal is to inspire staff members to develop solutions to both ongoing and new issues. For instance, Tesla has been able to consistently improve the automobiles they release to the market because of a focus on building electric vehicles that would restrict the growing environmental impact of cars.
Musk leads with open communication
One thing we know for sure is that Elon Musk dislikes business hierarchy.
Musk explains how detrimental communication hierarchies may be to productive problem-solving in a now-famous email to Tesla employees. Instead, he claims, communication is most effective when everyone has access to one another at all times.
Anyone at Tesla can and should email or talk to anyone else according to what they think is the fastest way to solve a problem for the benefit of the whole company. Moreover, you should consider yourself obligated to do so until the right thing happens. We obviously cannot compete with the big car companies in size, so we must do so with intelligence and agility.
Elon Musk
Any expanding business should learn something important from this: good communication is essential to problem-solving, and hierarchies can block the proper flow of information.
Adopting a company structure that minimizes hierarchical conflict and building an organizational culture that promotes flexible and dynamic communication to get things done are effective ways to do that.
Features of Tesla company culture
Tesla, Inc. has an innovative organizational culture that values problem-solving. Employees are motivated to create profitable solutions to ongoing and potential problems in the target market by this type of business culture.
The main features of Tesla company culture are the following:
- Move fast
- Innovate
- Do the impossible
- ALL IN
Move fast
Tesla Inc.’s competitive advantage is impacted by speed. This organizational culture trait emphasizes the value of employees’ being able to react quickly to trends and changes in the global market.
For instance, the company’s human resources give it the potential to create innovations that are on par with or better than those made by rival car companies. Tesla’s corporate culture supports business resilience in this way by acting quickly in response to difficulties in the global auto industry.
Innovate
Tesla’s core values rely on innovation. This aspect of organizational culture emphasizes the company’s ongoing commitment to innovation. For instance, the company continually studies and creates solutions that enhance the designs of existing energy storage products.
Constant innovation assists in the creation of cutting-edge electric cars and related items in this aspect of the business analysis. In order to combat the fierce industry competition, ongoing innovation is required.
Do the impossible
Tesla needs to make sure that its company culture encourages people to think creatively in order to create cutting-edge products. This cultural trait highlights the value of novel strategies while also recognizing the advantages of thinking outside the box.
For instance, HR managers educate staff members to push the limits on productivity and originality in automotive design. That leads to the development of innovative solutions to the world’s energy and transportation problems.
ALL IN
Tesla company culture united workers into a group that strives to advance the company. For instance, this cultural trait encourages collaboration to reduce conflicts. Such collaboration fosters synergy among the company’s human resources as well.
Because of this, the corporate culture makes the most of people’ abilities and capabilities. Teamwork that works well together helps Tesla remain competitive in the global auto industry.
ADVANTAGES VS WEAKNESSES OF TESLA CULTURE
Here are Tesla company culture’s most crucial advantages and weaknesses from which both have a lot to do with innovation. Can strengths also serve as company’s weaknesses?
Overview of Tesla’s advantages
The emphasis on innovation is part of the Tesla company culture. This cultural characteristic has the benefit of letting the company create cutting-edge items that appeal to its customer base.
For instance, Tesla cars have a growing market share in the automotive industry thanks to the company’s strong branding. This benefit is consistent with Tesla’s broad competitive strategy and ambitious growth plans.
The business culture is also useful in that it supports problem-solving and quick responses. This cultural characteristic ensures that the organization stays current with emerging technology and that its products are efficient and relevant to the demands and preferences of its clients.
Overview of Tesla’s weaknesses
The pressure Tesla’s company culture places on employees to constantly innovate is a downside. Although innovation is valuable to the business, it drains human resources. Nonetheless, this cultural trait provides long-term corporate competitiveness when correctly implemented.
However, Tesla’s organizational structure puts limits on staff responsiveness, offsetting some of the impacts of the corporate culture that encourages quick decisions and responses to issues in the auto industry.
In conclusion
Tesla company culture encourages employees to look for the best solutions possible to set the company apart in the auto and energy generating and storage industries.
As any other company, it also has flaws. However we are certain that the company culture of Tesla is worthy of learning from.
We hope you enjoyed this article!
