In capitalism, there are several factors that contribute to the success of a company. These factors are capital, production, distribution, pricing, competition, risk and profit management. Every business goes through these things to be successful. A very notable company that has done all of these things is Tesla. Tesla is a car company founded by Elon Musk. They sell some of the nicest electric cars currently available. Tesla was founded in 2003 by Elon Musk. Some investors invested in Tesla from the beginning with their personal funds, and this caused Tesla to start with a capital of $7.5 million. Tesla's idea was to make electric cars available on the market. Then it entered the production phase and Tesla signed a contract with another car company, called Lotus, which said 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 each. At that time Tesla was still very small, but this is where it really started to become a big car brand. Tesla took out a $500 million loan and paid it back 3 years later. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original EssayTesla has been known in recent years to have problems distributing its cars in several states. Tesla does not sell its cars through dealerships and this 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 its distribution in states like New Jersey if it ever wants to sell more cars here. Originally when Tesla first started and for several years after, Tesla only sold a luxury sports car called the Tesla roadster. It cost more than 100,000. Now they sell sedans and SUVs and these sell much better than sports cars because of the price difference. Tesla sedans sell for around $70,000, but a low-end sedan will soon launch for around $35,000. It took them several years to determine the best price for their cars. When Tesla started, it definitely wasn't entering an industry that had little competition. Tesla was entering one of the largest industries in the United States. It's pretty safe to say that Tesla undoubtedly faced a lot of competition. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay The risk for Tesla when entering this industry was extremely high . The automotive industry is primarily made up of a few large companies that each own several automotive brands and sell them through dealerships. There are very few small companies in the automotive industry, so for Tesla to get started took a huge risk. However, Tesla has managed to build a very successful company and is now starting to profit from it. Tesla Motors is worth around $8 billion today.