San Francisco State UniversityManaging Organization Development and ChangeMGMT 670Dr. Ebru IpekTesla Organizational Change|Spring 2021|Yuewen (Carol) Zeng, Zhijun (Amy) Liu,Raul Meneses, Ronakkumar Khalasi, Chris MatilszkiHistoryTesla Inc. (TSLA) is an American start-up driven by Silicon Valley. Tesla was named after Nikola Tesla, a highly successful inventor and scientist of his time. He has distinguished achievements in radio technology and electrical engineering of Serbian origin.Tesla was founded on July 1, 2003 by Martin Eberhard (former CEO of Tesla) and Marc Tarpenning (former Vice President of Research and Development) as a tribute to Nikola Tesla. Elon Musk invested $6.3 million in Tesla in 2004, but only on the condition that he become chairman and have final say on all matters.Tesla specializes in pure electric cars, not hybrids. The first automotive product, Roadster, was released in 2008 as a two-door sports car. In 2012, Tesla launched its second automotive product, the Model S, a four-door, all-electric luxury coupe. In 2015, the third car product was Model X, a luxury pure electric SUV. Tesla’s fourth car, the Model 3, was first unveiled in March 2016. Elon Musk unveiled the Model Y, a compact SUV developed by Tesla, in Los Angeles in March 2019.Organizational Chart:Organizational ChangeEmployee TreatmentIn the latter part of 2018 and 2019 Tesla was being reviewed for employee treatment and mishandling of harassment reports filed. This began to grow due to public outcry and the possibility for future lawsuits. The CEO Elon Musk stated in an email employees had to grow thicker skin, and Musk supporters felt restraint about changing their work culture. There was hesitation due to the vision and the daily operations, which may affect the way the company is run. The change in employee treatment can benefit Tesla by motivating their employees and feeling a part of the vision put in place for the company.The issues at Tesla that employees have are a mockery for being homosexual, needing improvement on workers health and safety, changing the workforce culture, and job security(Houser, 2018). Regarding safety, Musk said he would personally account to the seriousness of employees getting injured on the job. Musk was found to not follow through with this promise. He has been hiding some of the reported injuries from statements and releasing statements that he does not follow through (Wong,2018).In 2019, Tesla announced one of its biggest organizational changes that would reshape the process of car sales and leave thousands unemployed. Tesla moved to a primarily online based sales tactic where consumers would build their cars on a website and then pick up their newly built Tesla from a distribution center. Completely cutting out the sale department Tesla now increased its profit margins on every vehicle sold.
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