Company Analysis: Tesla and Ferrari Comparison

Subject: Company Analysis
Pages: 1
Words: 390
Reading time:
2 min

Tesla and Ferrari are two instantly recognizable car brands with vastly different reputations. Tesla is a technologically innovative upstart, while Ferrari is an established colossus of opulence and speed. Tesla appeals to me because it is a futuristic business that offers its employees a chance to work towards an idea and make history. On the other hand, at Ferrari, I could learn how to build an enduring car business and eventually start my own line. In this essay, I will analyze and compare Tesla and Ferrari’s company goals, profitability, and popularity.

Both companies manufacture cars, but while Ferrari’s goal is automobile excellence, Tesla’s is sustainable energy. Ferrari’s mission statement asserts that they build cars “to win on both road and track” (“Ferrari DNA”, n.d.). It has no other objective than to release elegant, fast contraptions that are fundamentally status symbols. In contrast, Tesla’s mission is to “accelerate the world’s transition to sustainable energy” (Parker, n.d.). Their goal is to transform the transport sector and facilitate the adaptation of renewable energy. Unlike Ferrari, Tesla has a vision for the world beyond cars, which attracts me more because it makes the work more meaningful.

Furthermore, Ferrari is more profitable per car but is outpaced in quarterly earnings by the more popular Tesla. Ferrari makes a profit of approximately 80,000 USD for every car sold, amounting to a profit of 180 million per quarter (Im, 2018). In contrast, Tesla earns 20,000 USD per car, and its quarterly earnings surged to 1.6 billion USD this year (Boudette, 2021). The discrepancy in overall profits is because Tesla sold approximately 500,000 vehicles in 2020, compared to Ferrari’s 9,000 (“Ferrari & Tesla’s 2020 Results”, 2021). Given these numbers, working for Tesla is more appealing because I would be able to impact the lives of a greater amount of people due to the proliferation of Tesla vehicles.

In conclusion, after reviewing Tesla and Ferrari’s company goals, popularity, and profitability, I would prefer to work for Tesla. Tesla is more profitable than Ferrari because it is more popular with the general population. Furthermore, Ferrari’s goal is to make expensive, sleek cars, while Tesla visualizes a future with sustainable energy. These factors would make working for Tesla more meaningful because I would impact the lives of a greater amount of people and contribute to creating a better, more environmentally-conscious society.

References

Boudette, N. E. (2021). “Tesla’s quarterly profit nearly quintuples to $1.6 billion as car sales surge.” The New York Times. Web.

“Ferrari DNA”. (n.d.). Ferrari. Web.

“Ferrari & Tesla’s 2020 Results.” (2021). Karenable. Web.

Im, J. (2018). “This is how much profit Ferrari makes off every car.” CNBC. Web.

Parker, B. (n.d.). “Tesla Mission Statement, Operational Goals, & Culture”. Business Strategy Hub. Web.