In capitalism, several factors contribute to the success of a business. These factors are capital, production, distribution, correct pricing, competition management, risk and profit. Every business goes through these things to succeed. Tesla is a very remarkable company that has achieved all of these things. Tesla is an automobile manufacturer founded by Elon Musk. They sell some of the nicest electric cars available today. Tesla was created in 2003 by Elon Musk. A few investors invested in Tesla from the start with their personal funds, which ensured that Tesla started with capital of $7.5 million. Tesla's idea was to market electric cars. It then moved to the production phase and Tesla signed a contract with another car manufacturer, called Lotus, which stipulated that Lotus would produce cars for Tesla for 6 years. In 2009, 6 years after Tesla launched, they had only sold about 150 cars for about 100,000 parts each. Tesla was still very small at that time, but that's when it really started to become a big car brand. Tesla got a $500 million loan and repaid it 3 years later. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay Tesla has been known in recent years to have difficulty distributing its cars in several states. Tesla does not sell its cars through dealerships, which is required in most states. This is why people in New Jersey can't buy a Tesla and we have to go to Pennsylvania to get one. Tesla needs to work on their distribution in states like New Jersey if they ever want to sell more cars here. Originally when Tesla started and for several years afterward, Tesla only sold a luxury sports car called the Tesla roadster. It cost over 100,000. Now they sell sedans and SUVs, and these sell much better than sports cars because of the price difference. Tesla's sedans sell for around $70,000, but soon they will also launch a low-end sedan for around $35,000. It took them several years to establish the best price for their cars. When Tesla started out, it certainly wasn't heading into an industry where competition was low. Tesla was launching into one of the largest industries in the United States. It's pretty safe to say that Tesla has undoubtedly faced stiff competition. Keep in mind: this is just a sample. Get a personalized article from our expert writers now. Get a Personalized Essay The risk for Tesla entering this industry was extremely high. The automobile industry consists mainly of a few large companies that each own several different brands of cars and sell them through dealerships. There are very few small companies in the auto industry, so to start Tesla you had to take a huge risk. However, Tesla has managed to build a very successful business and is now starting to profit from it. Tesla Motors is now worth around $8 billion.