Tesla Vice President Of Global Communications Resigns Within 18 Months Of Service

Ricardo Reyes has submitted the resignation shortly before the highly anticipated prototype of Model 3 was about to be released by the company.

Within the period of mere 18 months, Tesla’s vice president of global communications, Ricardo Reyes, has resigned from his services to the organization. He has taken the bold step at a very crucial time when the luxury electric carmaker is on the verge of selling its highly anticipated new model.

On the recent resignation, Mr. Reyes chose not to comment but one of Tesla’s spokespersons approved the news that he is no longer part of the company. Since November 2014 until the date of his resignation, Mr. Reyes held the offices of the top communications.

For Tesla, the top communications job is pivotal, as it does not rely on the traditional advertising. Unlike its counterparts, the Silicon Valley automobile giant does not spend millions of dollars on advertising. The methodology adopted by the company for the marketing of its prestigious electric vehicles involve the holding of automotive and technology press conference ensuring a substantial amount of media coverage.

The charismatic and visionary Chief Executive Officer of the company, Elon Musk, markets the company’s luxurious cars via highly popular social networking site, Twitter. The step is beneficial for the business as the CEO has around 3.6 million followers.

In its recent 10-K, the automaker has cited that generally it has always been successful in garnering significant media coverage of its vehicles and for itself. The statement said that the organization looks forward to continue with its advertising methodology. It believes that up till now, it has achieved substantial number of sales through advertising via word of mouth and media coverage. The statement contained the company’s opinion that by not going for traditional methods of advertising, it has also endured low marketing costs.

Model 3 is supposedly is less expensive Tesla car. Smaller than the Model S, the new model is intended to be sold at a price of around $35,000 before tax incentives. The entire hopes of the business to emerge as a high-volume manufacturer in the automobile industry rest on Model 3. The highly anticipated car is expected to debut in market in late 2017.

On March 31, for the advertisement and marketing of the company’s affairs, journalists have been invited to an “intimate event” at Tesla’s design studio in Hawthorne, California. In the event, the CEO is scheduled to take the stage for a live presentation broadcasted on the organization’s website.

In 2009, Ricardo Reyes donned the role of vice president of global communications and strategic marketing. It was the time when the organization was planning for its June 2010 IPO. He resigned in 2012 in order to take the realm of brand marketing and communication for Square. He dedicatedly served in the top communications job for Tesla.

Tesla Motors Inc Future Outlook

Under the leadership of Elon Musk, the company is planning to keep itself ahead of its competitors.

CEO Elon Musk has made a habit of making the rivals sweat with his strategies and innovational productions. Tesla revealed about the business practices which every industry must recognize.

The company has spread an analysis showing, how in the year 2015, its Model S sales have outperformed the sales of other luxury sedans.  The company’s Model S sale stood at the top with 21,934 units sold last year. The second in line was the prestigious Mercedes S-Class, whose 21,934 units managed to be sold in the market. All of the nine listed competitors of the automobile giant underwent a significant decline –in double digit percentages –in sales of their products last year. In comparison with the company’s declining sales, Tesla’s sales increased by 51% –credited to the car maker’s efficient production.

However, the above mentioned comparison may not be made on the plausible grounds. For instance, Mercedes retail price is $95,000 while Tesla Model S starting price is $70,000. But, it cannot be ignored that last year Tesla outperformed in the sales of Audi A7 which falls in the same price zone.

With just a young age of 13 years, the automobile giant has spread its wings in the big competitive market. According to Tesla, the automobile industry is the most difficult one for the outsider to intrude. The chief reason is the humungous capital requirements. Moreover, the established global giants had their presence all over the market therefore the entry of a new company is not free from risks. However, Tesla blazed the trail for the high tech embedded luxury electric cars and gradually it has become the strong competitor in the relevant industry. The $21 billion organization went against the traditional ways and eliminated the dealerships altogether. If a strong industry like an automobile’s can be hugely effected by the new entrant then any other industry can have the similar results.    

Moreover, the introduced technology is relatively new and a lot of established competitors have not texted their expertise in the high tech segment. As the years pass by, Tesla’s products are getting better and better and most importantly they are not being available in affordable rates. Recently, few rivals have geared up to get ahead in the race. However, Tesla’s vast knowledge and higher volume production will help it to avoid lagging behind.  

Far ahead than profitability, a company’s mission is to satisfy its customers. The customers of the company include both employees and the customers and Tesla doesn’t lag behind in motivating and attracting employees and tempting the consumers to go for its products.

However, Tesla does get an Achilles heel after all. The company’s cash burn is increasing at an alarming rate. Last year, it struggled to keep up with its production capacity. If the competitors manage to manufacture the electric cars at the same rate as they make the old conventional ones then Tesla might get a run for their money.

Moreover, Tesla has already disclosed its plans for the coming year. The year 2017 holds fair outlook for the company. The San Carlos, Calif. firm is gearing up to produce and deliver the highly-anticipated Model 3 on time. To meet the deadline, the company has a lot of work to do and it is indeed meeting its target.

The essential step which the car maker has taken is the establishment of Gigafactory which reportedly will assist the company to meet its target of manufacturing 500,000 cars by 2020. Through the factory, the automobile organization will be able to lower its cost of lithium batteries that are currently used in the cars.

Tesla also disclosed about the $1.5 billion investment for installation of machineries purporting to the production of Model 3. Initially, the Fremont, Calif. factory will be used for the production of the new car. Moreover, Musk has been reported to have said that for the Chinese market, the company is also in favor of producing Tesla cars in China. The company’s official website reports that at the present the factory is capable of manufacturing 100,000 vehicles therefore the probable investment will result in robust production.

For showcasing their production, the car maker is planning on to set up 80 new retail locations and service centers. Currently, Tesla has to its credit 140 retail and service stations. However, the automobile behemoth wants to expand the retail locations so that the big number of vehicles to be produced in the future can easily be accommodated.

Moreover, the “fuel” of the electric cars, “the superchargers” will also be expanded; according to company’s future plans. With Model 3 around the corner the company has to take up the current 597 Superchargers with almost 3,481 superchargers.