Tesla Company Argumentative Essay Sample

Recently, the U.S department of Energy has been largely criticized for approving a loan to Tesla Company because the general populace believes that Tesla only makes cars for the rich people. Tesla is a highly innovative automotive start-up company which launched their first sports car which costs a whopping $100,000. Despite this high cost, Tesla innovations have proven to be highly efficient, luxurious and eco-friendly. This company focuses on manufacturing cars that uses renewable electrical energy, unlike their predecessors who chiefly depends on petroleum. It is for this reason that Tesla has gained favor with the Department of Energy but at the same time their costly high-end automobiles becomes simply unaffordable by most low and middle-class earners.
Most people claim that Tesla is an elitist company which is in operation only to render their services to the wealthy individuals in our society. They always call for Tesla to start producing electric cars which would be affordable to the common earner. Nevertheless, consumers should understand that this is a brilliant business strategy being applied by Tesla in order to ensure that they survive in this competitive market. Many startups companies in the automotive industry such as DeLeron, Yugo, Bricklin and Tucker ended up being pushed out of the market since they entered the market and tried to make their cars very affordable like giant companies such as Toyota were doing, ignoring the fact that they have a low production capacity and therefore would not withstand the competition for a long time. Therefore, it calls for a research on this company so as to validate or disapprove this business strategy that excludes a large proportion of willing consumers from accessing their automobiles.
Since petroleum is a limited non-renewable source of energy, it will certainly in the future become depleted. Therefore, despite all the criticism that Tesla encounters for selling their products expensively, it is commendable how they endeavor to create sustainable environmentally-friendly products. Through my research, I will deeply analyze Tesla company and find out if it they are justifiable in making cars only for rich.