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The Idea of Electric Airplane

The Idea of Electric Airplane

History of Tesla Company

Tesla is an American company founded by Martin Ebert and Marc Tarpenning, famous American entrepreneurs, in 2003 (Perkins, 2018). The Company is named after inventor Nikola Tesla, who was a Serbian American. Tesla Company, formerly known as Tesla Motors, deals with car batteries, home electrical appliances, solar panels, and general electric automobiles. The founder members played different leadership roles, whereby Eberhard was the chief executive officer, and Tarpenning was the chief financial officer. The primary source of finance for the company came from Elon Musk, the co-founder of PayPal, who later served as the company’s chairperson from 2004. Elon Musk is currently the largest shareholder of Tesla, with 21.7% of the stocks (Perkins, 2018).

The CoCompany’sission and vision

The CoCompany’sision is to “create the most compelling car company of the 21st century by driving the world’s world transition to electric automobiles” “Kreutzer, 2019). The main idea behind the CoCompany’sision was to prove if electric automobiles could be reasonable when compared to gasoline automobiles. TeTesla’sission is “t” accelerate the advent of sustainable transport by bringing compelling mass-market electric cars to the market as soon as possible” “Kreutzer, 2019). The CoCompany’sission was to produce electric cars in large quantities ahead of competitors. To fit in the market with their mission based on quantity and pricing, they introduced their first sports car in line with the competitive gasoline cars. Under MuMusk’s leadership, Tesla focused on the production of the first electric airplane (Tesla, 2016).

 Leadership idea behind the production of electric airplanes

Stiff competition in the automobile industry has led to the idea of coming up with an electric airplane. The only limiting factor behind the concept of an electric plane is the density of the battery. A denser battery is required for the plane to have enough power to travel long distances. With leadership, the thickness of Tesla batteries improves every year. In 2 to 3 years to come, the battery’s capacity will have reached 400 watt-hours per kilogram. At this point, Tesla would have produced an electric airplane. Besides, today’s competitive world calls for leaders who are project-oriented and ambitious, like Musk.



Tesla’s SWOT analysis


Suitable business models

Reliable products/automobiles

Good leadership/management



Economies of scale



High cost of production/operation




International regulations

Table 1.0: an overview of Tesla’s SWOT analysis


Suitable business model: The Company’s model is based on three approaches: selling, servicing, and charging its automobiles. Tesla sells directly to customers without involving intermediaries, improving customer relations for an extended period.

Reliable products: Since the Company’s first product was considered expensive, they decided to produce an electric sports car that could compete with gasoline alternatives.

Good leadership: other companies admire Tesla CEO Elon Musk worldwide because of his entrepreneurial skills. Musk is a project-oriented and ambitious leader. Musk has an idea of coming up with an electric plane, a statement that he believes will be implemented soon. Well-understood business models, reliable products, and good leadership are critical strengths behind the Company’s success.


Expansion and economies of scale: The Company produces electric cars and other products such as solar panels, electrical home appliances, and car batteries. Musk’s idea to build an electric airplane will expand the Company globally. Companies that produce more than one product have an added advantage of surviving a competitive market because if one product fails, the other product keeps the Company moving.


High cost of production: The cost of production of electric automobiles is high. For instance, the first electric sports car was costly and thus expensive. Many resources are used to start and maintain charging stations. In addition, the resources used to pay engineers who produce and service electric automobiles are incredibly high. The costs associated with the idea of making an electric airplane are even higher.


Market competition: Tesla Company faces stiff competition from companies producing similar products. Companies such as Ford Motors, General Motors, and Canoo have become a significant threat as they use the same business model and produce products identical to those of Tesla. The idea of electric airplanes faces the challenge of the already existing gasoline-powered airplanes.

International regulations: Tough and unfavorable international regulations have negatively affected the marketing of electric automobiles. For instance, the Company is highly taxed when selling products outside its country. Huge taxes discourage production as they increase the cost of production. The Company should adopt a unique business model and differentiate its products to survive market competition. Internationally accepted trade regulations should apply to avoid exploiting companies in international markets.

The idea of the electric airplane in the Company’s growth

A company that produces more than one product has a high chance of growth. For instance, Tesla produces electric cars, car batteries, electrical home appliances, and solar panels. With the variety of products, the Company gets revenue. These revenues can be used for invention and innovation. Once resources are enough, it becomes easier to implement new ideas. The revenues generated are used for expansion and growth. Companies that produce more than one product enjoy economies of scale. Such a Company is in continuous production because if one product does not reach the market, they will concentrate on the product that has a ready market.

Part 3

Organizing and Staffing

Organizational chart

CEO is the highest rank in the Company. The chief executive officer will manage the overall operations and resources of the organization. Being the Company’s public face, the CEO is the main point of communication between other ranks. CEOs shall take responsibility for expanding the Company for profitability purposes. In addition, the CEO shall make high-level strategic decisions responsible for the Company’s growth.

Engineering and production officers shall be responsible for any production process within the factory. The production engineer plans and manages the elements of production in the factory. Qualified production engineers have the skills and knowledge to assess and analyze production methods to maximize productivity.

The chief finance officer is the top financial position in an organization. Responsible for financial planning and monitoring the flow of cash. The finance officer analyses the financial strengths and weaknesses of the Company and proposes what is supposed to be done.

The human resource department performs the following duties: recruiting employees, training employees, ensuring employee safety, and enhancing employee relations.

The procurement officer evaluates suppliers’ products and services. Contracts are offered and negotiated at the procurement department.

The sales officer is responsible for explaining the Company’s products to the customers to increase sales. Together with the human resource officer, the sales office is responsible for recruiting the sales employees. Further, the sales officer also trains sales employees.

For an organizational chart to be effective, communication between departments is essential. Departments are dependent on each other in any organization. For instance, the production department cannot produce without getting information from the sales department about what the customer requires.

Availability of resources in the implementation of the new idea

Capital and labor are the primary resources required to implement the idea of an electric airplane. With capital, the Company has enough resources. Huge revenues from the Company’s economies of scale are enough to finance the project, and there is no need for outsourcing. If the Company runs out of resources soon, the shareholders are in a position to fund the operations.

An experienced and skilled workforce is required in the production of the electric plane. Since it is the first time an electric aircraft has been produced, there is a need to outsource the workforce. The outsourced employees will work on a contractual basis, of which the Company shall fund the whole process.

The estimated cost associated with the implementation of a new idea and the effects on the Company’s revenues  

High costs are associated with the development of electric planes. That will harm the revenues generated in the automobile industry. Again, it will cost a lot of money to design and test the aircraft. Nevertheless, the electric airplane will significantly reduce fuel costs.

Leading and Controlling

It is my role as a manager to lead and control an organization. Leading is not about managing tasks but about motivating, encouraging, and inspiring my employees to improve productivity (Fong, 2018). Communication with my employees plays a vital role in the Company’s success. Communication goes beyond giving orders; rather, it entails listening to employees’ views and discussing issues to solve problems when they arise. As a manager, I should encourage my employees to work hard by motivating them and rewarding them for their excellent work. In addition, I should give them chances to grow in their work positions for future leadership.

As a manager, I should ensure that the Company’s activities are performed as planned. The Company’s resources should be used effectively and efficiently to achieve the Company’s goals. I should be able to seek information from the employees and control the Company’s activities. There is a need to command respect from my team to direct and control actions.

Good leadership and control of employees bolster the productivity of an organization (Fong, 2018). When employees are given chances to express their views, they feel respected and motivated. A good communication platform allows the contribution and borrowing of ideas that enhance innovation. When employees are rewarded for their excellent work, they feel motivated and work hard to improve the Company’s productivity. Effective and efficient control of the Company’s resources will minimize wastage.


We are in a competitive business world. The automobile industry has also strategized to fit in the business-competitive world. For instance, the Tesla Company, which produces electric automobiles such as electric cars, electric batteries, and other home electric appliances, has come up with a new idea of making an electrified airplane. Despite the high costs associated with producing an electric-powered airplane, it will significantly reduce the cost of fuel. The electric aircraft will meet carbon emission standards, reducing pollution. The most disappointing part of the new idea is that the density of the battery is not enough to propel an electric airplane.             Another challenge associated with producing an electric aircraft is capital and labor. To solve the problem, the Company will outsource expert labor as a factor of production. The Company will experience growth and expansion from the generated profits with new ideas.

Leading and controlling are vital managerial functions in an organization. Communication should be encouraged in an organization to allow the borrowing of ideas to enhance innovation. Further, employees should be allowed to express their views, motivating them to be proactive and productive. The Company’s resources should be effectively and efficiently controlled to minimize wastage and enhance growth.


Fong, K. C. (2018) Leading in a Changing World.

Kreutzer, R. T. (2019). Vision, Mission, and Goals. In Toolbox for Marketing and Management (pp. 33-48). Springer, Cham.

Perkins, G., & Murmann, J. P. (2018). What does Tesla’s success mean for future dynamics in the global automobile sector? Management and Organization Review14(3), 471-480.

Tesla, inc.’s mission statement & vision statement (an analysis) – pan more institute. (2016, July 24). Panmore Institute. Retrieved November 19, 2021, from

Guangul, F. M., & Chala, G. T. (2019, January). Solar energy as a renewable energy source: SWOT analysis. In 2019 4th MEC International Conference on Big Data and Intelligent city (ICBDSC) (pp. 1-5).


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The Idea of Electric Airplane

The Idea of Electric Airplane

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