Impact of the COVID-19 Pandemic on Tesla
What are the current short-term impacts of the pandemic on your firm?
The COVID-19 pandemic has had a strong impact on the automakers such as Tesla. The pandemic came unexpectedly, and thus, many companies were unprepared for a disaster of such magnitude. The pandemic hit, and in a few weeks, companies were struggling (Reuters, 2020). Tesla one of the big car manufacturers, was not left but was also hard hit, causing both short-term and long-term effects. Some of the short-term effects of COVID-19 on Tesla were; first when COVID-19 was announced in the U.S. The company’s shares plunged (Reuters, 2020). The investors freaked out from investing; hence the stock prices dipped significantly. Although there is some hope on the horizon at this time of vaccine administration, the stocks are not badly off.
The second short-term effect of COVID-19 on Tesla was that production was halted in most of its production points. The production point in Fremont California, the battery factory in Nevada, and the solar-powered vehicle factory in New York stopped the production. The suspensions of the production of t significantly derailed Tesla’s Year’s targets (Reuters, 2020). Reports reveal that production in April 2020, a month after the announcement of COVID-19, dropped by 22%. (Reuters, 2020). The third short-term effect of the pandemic on Tesla was that sales also dropped by a big margin because most people were unwilling to purchase the vehicle. People were holding resources in a situation of wait-and-see.
What are the anticipated long-run affects?
Some of the long-term effects of COVID-19 on Tesla are; first, the company shed off some employees as a survival strategy. Therefore, Tesla lost experienced employees to other firms, and getting other employees who can perform like the one that it dismissed would have a long-term effect (ING, 2021). The second long-term effect of COVID-19 is that Tesla changes its disaster management strategies, which would have a long-term effect on the company’s operations. The third long-term effect of COVID-19 on Tesla is that it interfered with long-term goals such as sales projections, production projections, and financial projections. Therefore, the overall impact of COVID-19 on Tesla has been a threat to its survival.
References
Brem, A., Viardot, E., & Nylund, P. A. (2021). Implications of the coronavirus (COVID-19) outbreak for innovation: Which technologies will improve our lives? Technological forecasting and social change, 163, 120451. https://doi.org/10.1016/j.techfore.2020.120451
Eichenberg, P. (2021). One Year Later: COVID’s Long-lasting Impact on the Auto Industry https://www.qad.com/blog/2021/03/one-year-later-covids-long-lasting-impact-on-the-auto-industry
ING. (2021). COVID-19’s long-term effects on the automotive industry. https://think.ing.com/reports/COVID-19s-long-term-effects-on-the-automotive-industry
Reuters. (2020). COVID-19 impact: Tesla suspends production at U.S. vehicle factory https://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/COVID-19-impact-tesla-suspends-production-at-u-s-vehicle-factory/74723158
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Question 
Opportunity or Threat? The Potential Impact of the Covid-19 Pandemic on Your Firm
For this week’s graded discussion, I want you all to discuss the current elephant-in-the-living-room and how it will potentially impact your firm.
Impact of the COVID-19 Pandemic on Tesla
There can be no doubt that the current pandemic has dramatically impacted our lives, and the economic well-being of pretty much every industry in some way or form. Some of the things that I personally find interesting to learn and contemplate are the various ways that the pandemic is affecting different industries. For example, while the restaurant business is facing desperate times, online retailers are thriving. Gyms and personal health services are devastated, but maybe not as much as we initially believed they would be..it depends on the nature of the service and how it is delivery. Certainly when one looks at the stock market, it dipped and grew better than many of thought was possible, yet still there hangs a lot of economic instability in the air. You can also delve deeper into the secondary effects. How many of us anticipated the impact on global supply chains, for example? The answer to the question as to whether or not the pandemic helps or harms a given firm seems to depend intimately on; the nature of the product or service being sold, how it is made, and/or how it is delivered to end users, the effect of substitution, and the list can really be endless.
For this week’s discussion, do a little bit of research and thinking about your firm and the pandemic’s influence and answer the following questions:
- What are the current short-term impacts of the pandemic on your firm?
- What are the anticipated long-run affects?