Tesla Motors Inc could use some help as the firm works hard to deliver on its promise to to build an EV that will fit just about any budget. Tesla is on a hiring spree and qualified talent is hard to find. If the firm is going to continue to defy the pessimism of naysayers, bears, and critics who never thought a startup could break into the auto market and win, they’ll need to compete hard for the best talent available.
Elon Musk is ready to face the business of growing Tesla and the firm is poaching talent from Facebook and Uber to unlock growth. Elon Musk has revealed that he plans to deliver 500,000 cars by 2018 (instead of the previous 2020 target). He also plans to grow the business to deliver 1M cars by 2020. However, it appears that investors are worried about where the growth could lead the firm.
The EV maker has been losing investor confidence in the last couple of sessions after its earnings report. On Monday, the stock was down 2.80% to close at $208.92 and it is down 13% in year-to-date.
Facebook and Uber veterans to unlock growth at Tesla
Tesla Motors is setting up a proactive growth team and Elon Musk thinks that folks who have worked at Facebook Inc and Uber at the best hands for the job. It was reported that Tesla has poached away Praveen Arichandran to become its new Director of Growth Programs – Arichandran was the formerly the director of growth programs at Facebook. It was also reported that Musk has hired Sisun Lee to be part of the growth team at Tesla. Sisun Lee has been on the growth team at Uber since January, before joining Uber, Lee had worked with Arichandran in the growth team at Facebook.
Facebook and Uber are examples of startups that have successfully scaled to become household names to become the leading players in their markets. Facebook started out from humble beginnings that could be likened to a “yearbook” for Harvard students; yet, the firm has scaled and grew to boast 1.4B monthly active users. Uber is another success story of growth and scale (although to a lesser degree than Facebook), the startup completed 1Billion rides last December and more than 8 million people use the service.
Tesla is working towards taking over the mass-market for cars and it needs a proactive growth team. Electrek notes that “a growth team within a company is generally a small data driven group tasked with figuring out how to scale the business. Most often, the day-to-day work will consist of planning growth models and running them in simulations in order to develop the best possible way to expand.”
Tesla must make data-driven decisions
Tesla Motors has probably bitten up more than it can chew with the Model 3. The Model 3 got more than 325,000 preorders in the first week of its unveiling and it now has almost 400,000 preorders. The firm needs the insight from its growth team to analyze the treasure trove of data from the 400,000 preorders to draft out a proactive growth plan that has the best shot at success.
For instance, Tesla needs to link the dots on the kind of people ordering its cars and where they are located. The data could help the firm plan deliveries by geographical proximity, build the next line of superchargers, expand old service center, and build new stores and service centers among other things.