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Operations management tesla s location strategies

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Running head: TESLA’S LOCATION STRATEGIES 1
Tesla’s Location Strategies
Student’s Name
Institutional Affiliation

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TESLA’S LOCATION STRATEGIES 2
Tesla’s Location Strategies
Introduction
Tesla, Inc. is an American multinational automotive and energy company which
specializes in the manufacture of electric cars and solar panels. Tesla’s operations management
enables the company to design and control the process of production to enhance efficiency. Due
to competition in the automobile industry, Tesla must ensure cost-efficiencies to achieve
profitability. The production system influences how the company manufacturers its products. In
this regard, manufacturing companies require location strategies to identify optimal regions for
their factories. The manufacturer must determine its objectives before selecting an area
compatible with its supply chain. Moreover, economic factors influence a company’s location
strategy. For example, state governments use tax breaks to attract investments by large
businesses. Since its inception, Tesla has experienced significant challenges in determining
suitable locations for its multiple operations. It operates its Gigafactory in Reno, Nevada, and its
automobile facility at Tesla Factory in Fremont, California (Tesla, 2010). In addition, the
company is building an offshore assembly plant in Shanghai, China. Hence, Tesla’s location
strategy influences its selection of optimal production centers to enhance its competitiveness.
Tesla’s Locations Model
Location strategies enable businesses to maximize the advantages of a region. Due to
increased competition, small margins determine the profitability of a company. Lowering
production costs is essential in achieving cost-efficiencies. If a company selects the wrong
location, the raw materials will take more time to reach the factory while the produced goods
will be expensive to transport to the consumers. A location strategy encompasses facilities,
logistics, and feasibility. A manufacturer should also consider political risk, labor costs, and

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Running head: TESLA’S LOCATION STRATEGIES Tesla’s Location Strategies Student’s Name Institutional Affiliation 1 TESLA’S LOCATION STRATEGIES 2 Tesla’s Location Strategies Introduction Tesla, Inc. is an American multinational automotive and energy company which specializes in the manufacture of electric cars and solar panels. Tesla’s operations management enables the company to design and control the process of production to enhance efficiency. Due to competition in the automobile industry, Tesla must ensure cost-efficiencies to achieve profitability. The production system influences how the company manufacturers its products. In this regard, manufacturing companies require location strategies to identify optimal regions for their factories. The manufacturer must determine its objectives before selecting an area compatible with its supply chain. Moreover, economic factors influence a company’s location strategy. For example, state governments use tax breaks to attract investments by large businesses. Since its inception, Tesla has experienced significant challenges in determining suitable locations for its multiple operations. It operates its Gigafactory in Reno, Nevada, and its automobile facility at Tesla Factory in Fremont, California (Tesla, 2010). In addition, the company is building an offshore assembly plant in Shanghai, China. Hence, Tesla’s location strategy influences its selection of optimal production centers to enhance its competitiveness. Te ...
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