Identify the biggest financial threats tesla faces

Reference no: EM133377049

The Tesla Case ( compulsory add references and citations)

( all questions are in bold letters )

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You are about to compete for your MBA studies in Finance. The College has helped you get an interview with Tesla. You are elated at the prospect of being interviewed for a position at Tesla. Throughout your MBA experience, you have heard everyone heap praise on Musk as a fantastic entrepreneur and on Tesla as the wave of the future.

You have been asking yourself what kinds of questions the Tesla interviewer might have. Off the top of your head, all you can think of is a bunch of clichés:

Tesla is great
Very rich company
Musk is terrific
They make a lot of money
Ford, General Motors, Honda, Volkswagen, Toyota are finished.
Electric charging stations? Sure, they're on the way.
Then it occurred to you that there might have been a few problems at Tesla -FINANCIALLY. After all, that is your speciality and that is what they will ask you about.

Here is your task:

Identify the five biggest FINANCIAL threats Tesla faces
Also, mention a credible response to how you would be able to deal with these issues
Remember, Tesla is a big, demanding, successful company. They are looking for candidates who would give credible answers.

The business news is littered with stories about Tesla's market capitalization, which has shrunk massively. Avoid the generalized, waffling type of answer, such as:

"What would I do to deal with Tesla's falling market capitalization? Well, I'd try to get their market capitalization back up. You know, sell more care or something. They could offer significant discounts. Maybe give 25% off if someone bought two or three Teslas. Maybe have a marketing plan. Beyoncé could do the ads...."

An answer of this kind would not impress the interviewer. As an MB in Finance, you should be able to,

Discuss why Tesla's market capitalization dropped.
Talk about what the company might do to restore its market cap.
Give at least a general assessment of how far ahead of its competitors -Ford, GM, etc. - Tesla is in terms of electronic technology.
Are the competitors - Ford, GM, etc. -- working with High-Tech companies to catch up to Tesla?

Reference no: EM133377049

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