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“From 2003 to Today: Tesla’s Impact on a Greener Future”

Tenzin Dickyi

Patricia Fillipi

ENGC 1101

October 24, 2024

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Table of contents

I. Introduction

Overview of the tesla

Elon mask entry

II. Influence of technology

Impact and changes

III. Information technology

IV. Market growth and technology advance

V. One tesla owner insight

VI. Conclusion
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Introduction

“In the world of cars and energy, Tesla, Inc. shines as a symbol of progress, caring

for the environment, and bold entrepreneurship. Started in 2003 by Martin Eberhard and

Marc Tarpenning, Tesla has grown into a major player worldwide, thanks to the visionary

Elon Musk. Their goal is to speed up the switch to clean energy globally, which has led

them to develop innovative electric cars and renewable energy solutions tirelessly.”

In the early 2000s, the automotive industry was under increasing scrutiny due to

environmental concerns and reliance on fossil fuels. Amid this backdrop, innovation began to

reshape the consumer views on transportation. Tesla Motors, founded in 2003 by engineers

Martin Eberhard and Marc Trepanning, aimed to restructure the electric vehicle market,

initially gaining traction through its pioneering approach and advanced technology. The

history of Martin Eberhard and Marc Trepanning, two technology engineers whose projects

included the creation of an early eBook:

They were more determined to figure out how to start their own electric car company.

They knew this would not be an easy task - after all, the last American startup car was

Ford, and that was over 100 years ago. Additionally, the idea of an electric car was

still

so new to the world, with other car companies having already tried and failed at the

venture, such as GM with the EV-1. According to GM, the major problem is getting a

large enough customer base to make it worth their time and money to make electric

cars, (Alghalith 38).

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The concept of "Tesla" originated when Martin Eberhard wanted to honour Nikola

Tesla, the inventor of the AC induction motor that would power their electric vehicle. This

inspiration ultimately led them to name their company Tesla Motors, “In April 2003,

Eberhard purchased the domain name Teslamotors.com, and by July of that year, the

company was officially incorporated” ( Alghalith 38).

In my view, the decision to name the company after Nikola Tesla was not only a

tribute to an inventor whose groundbreaking work in electrical engineering paved the way for

modern electric power systems, but also a strategic move to align the brand with innovation,

vision, and sustainability. It’s fitting that the company has become a symbol of the future of

transportation, as Tesla himself was a visionary who imagined possibilities beyond his time.

Eberhard and Tarpenning attended an LA car show where they discovered the Lotus booth,

which became the foundation for their future vehicle. With the base car found, their next

challenge was securing the rights to the technology they wanted to use. They were

particularly impressed with the AC Propulsion T-zero, which they believed was ideal for

Tesla’s vision. Initially, Eberhard considered buying AC Propulsion outright, but the

company wasn't interested. Instead, Tesla negotiated a licensing agreement with AC

Propulsion, allowing them to use the key technology.

“Still seeking funding, Eberhard reached out to Elon Musk in 2004, even though

Musk had previously turned down an investment offer from AC Propulsion. Eberhard,

however, Tesla had a more compelling business model that might interest Musk. After

meeting with Eberhard and Ian Wright, who had joined Tesla in 2003, Musk agreed to invest

in Tesla on April 23, 2004”

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Elon Mask entry (2004)

“Elon Musk, the 46-year-old entrepreneur, engineer and philanthropist, is inextricably linked

with Tesla, the electric car, solar panel and energy storage company, but it is not his

brainchild. He joined the year after it was founded to help with fundraising and five years

later, he was the boss,” (“Share of the Week Tesla” 1). At the age of 12 he did his first

business selling the code of video game and at the age of 32 he made 180 million dollars

when PayPal was sold to eBay, and he invest all those in Tesla car and it made him the

largest shareholder and chairman of the board. Motivated by a big problem that required to

save the world whether it’s from climate change with electric car. Science fiction inspired his

ambition to prolong the lifespan of humanity and his business empire. He entered the picture

shortly after Tesla's inception, joining as an investor and eventually becoming CEO in 2008.

His vision for sustainable energy and transportation resonated with a growing segment of the

public increasingly aware of climate change and the limitations of traditional vehicles. Under

Musk's leadership, Tesla sought not only to produce electric cars but to redefine the

automotive landscape itself, with ambitious goals for innovation and sustainability (cite!)

The launch of the Tesla Roadster in 2008 marked a pivotal moment, showcasing the

potential of electric vehicles with its impressive performance and design. As Tesla began to

expand its offerings with models like the Model S and Model X, the company garnered

significant media attention and a dedicated fanbase. This excitement was further amplified by

Musk’s high-profile persona and his ventures in other fields, such as space exploration with

SpaceX.
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Part II

Influence of the technology

Elon Musk’s influence through Tesla has significantly shaped our society, economy,

and environment, driving a pivotal shift toward sustainable energy and innovation. Musk’s

leadership at Tesla has analysed the transition to electric vehicles (EVs), reshaped consumer

perceptions of sustainability, and spurred economic growth in renewable energy sectors,

fundamentally altering the automotive industry and influencing global climate policies.

Tesla has transformed public attitudes toward electric vehicles, making them

synonymous with innovation and desirability. The brand's high-profile status has encouraged

consumers to embrace sustainable technologies, reflecting a broader societal shift toward eco-

conscious living. Tesla’s rise has fostered substantial investment in clean energy technologies

and infrastructure, including charging stations and energy storage solutions. This has created

jobs and stimulated economic activity within the EV supply chain, encouraging competition

and innovation in the automotive sector.

“Many local B.C. governments have included EV goals in their community

environmental plans and are participating in an EV community advisory group organized by

the province” ( Moorhouse and Laufenberg 2). Musk’s ventures have prompted governments

to reevaluate and enhance policies supporting electric vehicles and renewable energy

initiatives. As the anticipated demand for EVs grows, regulatory frameworks are increasingly

aligning to facilitate this transition, thereby influencing energy policies and climate change

agendas globally.

By positioning electric vehicles as a viable alternative to traditional combustion

engines, Tesla has played a critical role in promoting reduced greenhouse gas emissions. This

aligns with global efforts to combat climate change, underscoring the need for sustainable

practices in transportation and energy consumption.

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“Tesla’s culture is very fast paced. Working in a startup company can be very difficult

for the employees, as there is not always a lot of structure or stability. It is very rewarding to

be a part of the team that implements new plans or initiates a new product and can see it”

(Alghalith 40). Through effective marketing and high-profile product launches, Musk has

created a cultural phenomenon around EVs that resonates with tech-savvy, sustainability-

focused consumers. Tesla continues to push new products into the market and get their name

and products into the available market. Since they are always pushing new ideas through the

company,

By March of 2017, Tesla had the top two models of electric cars with their Model S

topping the chart at 4,700 sales in the first quarter and the Model X having 3,900 sales

in the same time frame. The Chevy Volt, which was second in the first quarter of

2016, was the second closest at 2,132 sales. This gap in numbers shows that Tesla has

been able to become the leader in the emerging market of electric cars, which could

be a major advantage for them in sales and growth if the industry continues to shift

toward electric (Alghalith 42).

This shift not only redefines the perception of EVs but also inspires a broader cultural

movement toward environmentally friendly choices, pushing other automakers to embrace

sustainability in their designs

Tesla's rise has revitalized the clean energy sector, attracting significant investments

in electric vehicle (EV) technology and infrastructure. “As the first U.S. automaker to go

public in over 50 years,” Tesla set a precedent that encouraged both startups and established

companies to invest in EV development, fostering a competitive and innovative market. Its

expansion of Supercharger stations has made electric cars more practical for consumers and

has sparked partnerships within the energy sector. This growth has also led to the creation of

thousands of jobs in manufacturing and engineering, highlighting how Tesla's influence has
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driven economic growth and emphasized the importance of renewable energy in the

automotive industry.

Tesla's focus on electric vehicles has greatly advanced environmental sustainability

by reducing greenhouse gas emissions from transportation. As production increases, the

company is helping to lessen our dependence on fossil fuels, a crucial step in addressing

climate change, “According to a 2009 presentation by BC Hydro, British Columbia is

expected to have between 25,000 and 32,000 EVs on the road by 2013. By 2030 that number

will reach between one and 1.3 million. These numbers include both plug-in hybrid and

battery electric vehicles and assume an average conventional vehicle life of 15 years and an

EV life of 10 years” (Moorhouse and Laufenberg 7). Additionally, Tesla's efforts in solar

energy and battery storage showcase a comprehensive approach to sustainability, linking

vehicle emissions to the energy that powers them. This strategy positions Tesla as a leader in

combating climate change, emphasizing the connection between transportation and energy

use
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Changes and impact

Electric vehicles (EVs) have become a major topic in British Columbia’s Lower

Mainland, driven by both technological advancements and the urgency of addressing climate

change. There are two categories of EVs. A battery EV is solely powered by batteries, while

plug-in hybrid EV can run on electricity, fuel or a combination of the two, “EVs have been a

hot topic in the past few years as technology has improved and the search for climate change

solutions has accelerated. The Lower Mainland of British Columbia (B.C) has been a hot bed

of discussion and activity around EVs. B.C. is one of the most promising places in North

America” (Moorhouse and Laufenberg 1).

On the technological front, B.C. has seen high adoption rates of hybrid vehicles,

double the national average, reflecting growing interest in cleaner transportation options.

Local governments, including Vancouver, have been proactive in supporting EV adoption.

Vancouver, for example, requires EV charging infrastructure in new homes and buildings and

has worked with automakers like Toyota, Nissan, and Mitsubishi to bring more EVs to the

region.

On the technological front, B.C. has seen high adoption rates of hybrid vehicles,

double the national average, reflecting growing interest in cleaner transportation options.

Local governments, including Vancouver, have been proactive in supporting EV adoption.

Vancouver, for example, requires EV charging infrastructure in new homes and buildings and

has worked with automakers like Toyota, Nissan, and Mitsubishi to bring more EVs to the

region.
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“All the activities in the production, operation and disposal of a vehicle have some

impact on the environment. These impacts can take the form of greenhouse gas emissions, air

quality, water use and water quality and impacts on biodiversity and habitat destruction”

(Moorhouse and Laufenberg 9). While the manufacturing of EVs still carries an

environmental footprint, the shift to lighter and more sustainable materials is a step in the

right direction. However, the environmental impact of battery production remains a

significant challenge, and as the industry scales up, the need for responsible sourcing and

recycling of materials will only become more critical. The long-term environmental benefits

of EVs will ultimately depend on how well we address these production challenges.

Large-scale adoption of electric vehicles (EVs) could benefit the electricity grid,

particularly in relation to renewable energy sources like wind and solar. These renewable

sources are often intermittent, meaning they can’t always provide a stable supply of power

when demand is high. However, EVs could help address this issue through a concept known

as Vehicle-to-Grid (V2G) technology, which is still in the research phase. V2G allows EVs to

act as storage devices, absorbing excess power generated by renewable sources when demand

is low and feeding it back into the grid when needed.

“All the activities in the production, operation and disposal of a vehicle have some

impact on the environment. These impacts can take the form of greenhouse gas emissions, air

quality, water use and water quality and impacts on biodiversity and habitat destruction”

(Moorhouse and Laufenberg 9). While the manufacturing of EVs still carries an

environmental footprint, the shift to lighter and more sustainable materials is a step in the

right direction. However, the environmental impact of battery production remains a

significant challenge, and as the industry scales up, the need for responsible sourcing and

recycling of materials will only become more critical. The long-term environmental benefits

of EVs will ultimately depend on how well we address these production challenges.
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All aspects of a vehicle’s production, operation and disposal create some impact on

the environment. Analysing the manufacturing, operating and disposing of a vehicle is known

as life-cycle assessment (LCA). This approach is necessary when comparing vehicles. For

example, an EV may appear relatively cleaner than a gasoline vehicle when looking at the

operation stage. This analysis focuses on greenhouse gas emissions and air quality for several

reasons. First, personal transportation accounts for a significant share of greenhouse gas

emissions in the province. Understanding the potential for EVs to reduce transportation

emissions is therefore an important part of a greenhouse gas emission reduction strategy.

Battery electric (BEVs), plug-in hybrid electric (PHEVs), and hybrid electric vehicles

(HEVs) all produce fewer air emissions compared to traditional combustion vehicles. These

reductions can be substantial, ranging from a 10% decrease in sulfur dioxide.

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Information Technology

“The automotive industry is increasingly shaped by technological advancements,

particularly in how companies leverage technology to improve their operations and achieve

mass production efficiency. While consumers notice the technological features in vehicles,

the greater impact is on internal processes, where information technology (IT) is used to

enhance operational efficiency” (Alghalith 45).

In terms of competition, most traditional auto companies face little threat from

substitutes or new entrants, due to the high barriers to entry in the industry. Additionally,

consumer bargaining power is relatively low. However, competition between established

automakers and pressure from suppliers are key concerns. Tesla has unquestionably

revolutionized the automotive industry through its focus on innovation and technology. Its

electric vehicles (EVs) have set new benchmarks in performance, safety, and sustainability,

helping it to become a market leader in terms of market cap. Tesla’s approach to

manufacturing, driven by automation and advanced software, has set it apart from more

traditional automakers, which often still rely on older, less integrated systems.

To revolutionize the automotive world, innovatively developed electric vehicles as

benchmarks in performance, safety, and sustainability. Automated manufacturing processes

and advanced software place it at the top of the market, beyond even Ford and GM, in terms
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of capitalizing its structure. However, internal information systems are not as feasible as

those of other mature companies such as Ford or GM.

Still, Tesla utilizes provisionally developing homebred IT systems, which are not

optimally speedy and thus would be further improved to scale and operational efficiency. By

missing direct integration with the suppliers, it severely limits streamlining inventory

management and operational cost reduction. So, when base competitors benefit from more

close relationships with suppliers through the systems integrated, there is room for Tesla to

improve. Consequently, rectifying the deficiencies of such systems with more advanced,

specialized IT applications would upgrade its internal operations and extend its supplier

network thereby enabling Tesla to reap greater savings, efficiencies, and cost advantages as it

constantly meets challenges as an innovative leader in this rapidly scaling automotive sector.
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Market Growth and Technology Advance

“Electric vehicles (EVs) have made significant progress, with global sales

increasing and the one-millionth EV expected on roads by mid-2014” (Have Electric

Vehicles Reached A Turning Point? P1). The uptake of EVs is heavily influenced by

government incentives. In Canada, for example, incentives vary by province, leading

to slower adoption compared to countries like Norway, where EVs are exempt from

significant taxes and now make up 16% of new car sales.

EVs fall into two main categories: plug-in hybrid electric vehicles (PHEVs)

and battery electric vehicles (BEVs). While PHEVs combine batteries with gasoline

propulsion systems, BEVs rely solely on batteries, offering shorter ranges:

“Automakers are addressing limitations such as range and charging time through

innovations like lightweight materials, improved battery technology, and expanded

charging infrastructure. Tesla, for instance, leads with fast-charging stations and plans

for a mass-market EV (Model III) by 2017”. Jeremy Moorhouse and Katie Laufenberg

Electric vehicles have indeed reached a turning point, with falling costs, policy

support, and innovations driving increased consumer confidence. However, barriers

such as range anxiety, charging infrastructure, and high upfront costs remain.

Countries with strong incentives, like Norway, demonstrate the potential of

widespread EV adoption, but regions with limited support lag.

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“To reduce costs, Tesla is constructing a “gigafactory” to produce lithium-ion

batteries at scale, aiming for a 30% cost reduction. Automakers like Nissan, GM, and

BMW are also advancing EV technologies, ensuring sustained growth in the market

despite challenges”

Tesla’s ambitious goals, such as its gigafactory and open patents, may catalyse

faster innovation across the industry. However, achieving mass adoption will require

collaborative efforts between automakers, governments, and infrastructure developers.

While EVs have made remarkable strides, the road to full electrification will likely be

gradual and dependent on continued advances in battery technology, charging

networks, and affordability.

One Tesla Owner Insight

“Why did you choose an EV?”

“Our impetus to buy an electric vehicle (EV) came after we

installed our home solar panels, we could use the solar-generated

electricity in 2007. I started thinking of other ways that to reduce our

impact on the environment.”

So, the author was influenced by installation of home solar

panels in 2007. At that time, he began thinking about how we could

do more to reduce our environmental impact. The idea of households

adopting solar energy to reduce reliance on high-carbon power

stations seemed like a simple yet impactful change. If solar could help
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reduce our carbon footprint at home, then surely electric vehicles

could reduce the need for oil and further reduce our overall

environmental impact.

“What is it like to drive a Tesla?”

“We feel the Tesla must be one of the simplest cars to use and

drive. There are no remotes or keys needed to unlock the car. You just

walk up to the car with the fob in your pocket and the door handles

come out to greet you!” so here the author was trying to explain how

easy it is to drive tesla and including auto-steer for freeway driving,

auto headlights, and auto-park functionality.

“How long does it take to charge?”

“The Tesla superchargers (a network of highway chargers,

currently eight in Australia) provide around 270 km range of charge

per 30 minutes, or about 50% charge in 20 minutes and 80% charge in

40 minutes. The supercharger option is fantastic when doing longer

road trips; we just stop and grab a cup of coffee for a quick break

before continuing the drive.” So, author found It’s easy to charge like

charging your phone before you go back to bed and if you charge at

9pm it going to be full at 6am.

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“How do you envisage the future?”

“We’ve been embracing and enjoying our electric vehicle daily

since purchase. It has provided us with an opportunity to reduce our

carbon footprint, to help provide a more sustainable future for the

next generation.” So here the author is expressing their positive

experience with owning an electric vehicle (EV) and how it aligns

with their personal goals of reducing their carbon footprint,

contributing to a more sustainable future, and improving air quality,

which in turn helps lower health costs. They highlight the many

benefits of EV ownership, but also note that consumer-driven changes

tend to occur more slowly than government-led initiatives.

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