TEST 2

Teacher:
Johanna Poggi

Students:
De Los Rios Collantes , Maria Belen
Diaz Tenorio ,Sabrina
Alvarez Sifuentes , Ana Paula
Romero Garcia , Renzo
Julienne, Krieger

Lima , 2024
TESLA QUID PRO QUO

1. Introduction
 As the world grapples with the pressing challenges of climate change
and environmental degradation, the transition to sustainable
transportation has become increasingly critical. Electric vehicles (EVs)
have emerged as a pivotal solution in reducing greenhouse gas
emissions and improving air quality. Tesla, a leader in the EV market,
has made significant strides in minimizing its environmental impact
through innovative manufacturing practices and a commitment to
renewable energy.

2. Presentation
Tesla has revolutionized the automotive industry by merging
advanced technology with a strong commitment to sustainability.
Since its inception, the company has focused on developing electric
vehicles that not only deliver exceptional performance but also
minimize environmental impact. By promoting a shift toward cleaner
mobility, Tesla supports the reduction of carbon emissions and the use
of renewable energy. Choosing a Tesla vehicle allows drivers to enjoy
innovation and comfort while contributing to a healthier, more
sustainable future for the planet.

2.1. Actual context in sustainability

The context of sustainability characterizes multifaceted approaches
that integrate environmental , society and economic considerations.
Tesla is committed to accelerating the global transition to sustainable
energy, as outlined in their Master Plan Part 3. This plan highlights five
key areas that can significantly advance sustainability efforts beyond
Tesla's own operations. The company acknowledges that a full
transition to sustainability requires collaboration across various
sectors and industries.
- Environmental Impact and Electric Vehicles
Tesla's environmental initiatives highlight the significance of
electric vehicles (EVs). The company concentrates on cutting
greenhouse gas (GHG) emissions linked to both the production
and operation of its vehicles. For example, the Model 3 and
Model Y have notably lower lifecycle emissions compared to
conventional internal combustion engine (ICE) vehicles. As the
electricity grid continues to adopt more renewable energy,
Tesla’s vehicle emissions are expected to decline even further.
 - Battery Lifecycle and Resource Management
Tesla's battery technology is built to minimize degradation,
retaining about 88% of capacity after 200,000 miles. The
company also uses hotspot analyses to target greenhouse gas
(GHG) reduction in materials like lithium, nickel, and cobalt,
reducing the carbon footprint of battery production through
strategic resource management.
- Scope of Emissions Reporting
In its 2022 Impact Report, Tesla detailed its Scope emissions,
highlighting the upstream and downstream impacts of its
products. This transparency is key to understanding Tesla's full
environmental footprint and increasing accountability in its
sustainability efforts.
- Renewable Energy Integration
Tesla Energy seeks to provide a complete solution for
sustainable energy by promoting renewable energy sources
alongside electric vehicle charging infrastructure. This
integration aligns with Tesla's vision of building a sustainable
energy ecosystem that decreases dependence on fossil fuels.

2.2. Tesla’s sustainable and environmental responsibility

Tesla's mission is to accelerate the world's transition to sustainable

energy where the vehicles they produce, being electric, eliminate a
large part of the greenhouse gas emissions during their operation and
for this the company generated almost 1.8 billion dollars by selling
zero emission regulatory credits to other original equipment
manufacturers.
The company is not limited to vehicles but also produces solar panels
and energy storage systems, offering comprehensive solutions for
generating and using clean energy because as a vehicle with a
combustion engine ages, its fuel efficiency will only remain stable if
properly maintained. There is also an effort by the company to reduce
its environmental footprint in the production process, from the
acquisition of raw materials to the waste management itself. This is
seen in the concern of customers about spare parts, especially the
battery of the vehicle and how often they must replace it and for this
the vehicles are scrapped after 200,000 miles of use but even after
 this the capacity of the batteries of the Tesla only lose 12% of their
capacity on average.

3. Quid pro quo concept in automotive industry

3.1. Application of the concept to tesla
Tesla follows the concept of quid pro quo in business; for innovative
‘green’ products, the company demands customer loyalty, regulatory
credits and market leadership. Tesla develops and produces electric
cars and renewable energy solutions that benefit not only the
consumer, but also the environment as a whole. Tesla receives a
strong market presence, support from governments and regulators in
the form of subsidies and incentives to reduce carbon emissions. This
mutually reinforcing exchange fuels Tesla's growth and is in line with
the company's mission to accelerate the world's transition to
sustainable energy.

3.2. Benefits of the sustainability strategies

Some of the benefits are:
● Electric vehicles produce zero tailpipe emissions, this reduced
air pollution and contributed to mitigate climate change.
● The use of electric vehicles reduced the demand for gasoline
and also diesel.
● Also by eliminating tailpipe emissions, electric vehicles
contribute to clean the air in the urban areas specifically.

3.3. Connection between the quid pro quo concept in Tesla business
model
Quid pro quo, the idea of doing something in return for something else,
is baked into the business model of Tesla: the more sustainable the
actions, the more sustainable the benefits that come back to the
company. Manufacturing EVs and renewable energy products reduces
carbon emissions, thereby giving Tesla a very loyal customer base and
an increasing market share of the automobile market. Reaching those
global environmental objectives translates into government incentives
for Tesla and, importantly, a friendly regulatory environment.
Tesla uses renewable energy for its operation apart from powering
Gigafactories with solar power, which will help cut costs and further
 entrench its reputation as a leader in sustainability. This brand image
will indeed attract many conscious consumers and investors.
Additionally, Tesla is concerned with the ethical sourcing and
sustainability of its supply chain, which reduces risks and makes it
stable in the long term. In return, Tesla gains more security in the
supply chain, saves costs, and better positions itself in the market.
What Tesla is following is something of a virtuous circle, where
commitment to sustainability fuels business success. (Larsen)
(Greenspan)

4. Environmental impact analysis

4.1. In 2022, Tesla vehicles helped avoid approximately 13.4 million
metric tons of CO2e emissions. Each Tesla vehicle is estimated to
avoid around 55 tons of CO2e over its lifetime, contributing
significantly to greenhouse gas reduction efforts.

[Link] has achieved a 30% reduction in greenhouse gas emissions

per vehicle compared to traditional internal combustion engine (ICE)
vehicles. Additionally, 90% of manufacturing waste is recycled,
showcasing a commitment to sustainable production practices.

4.3. The production of Tesla vehicles requires 15% less water than that
of ICE vehicles, with ongoing efforts to optimize water use through
rainwater harvesting and recycling. This aligns with Tesla's goal of
reducing water consumption in manufacturing processes.

4.4. Tesla operates a 100% renewable Supercharger network, which

enhances the sustainability of its electric vehicles as the grid becomes
greener over time. This transition is crucial as charging EVs becomes
increasingly environmentally friendly.

4.5. By displacing fossil fuel alternatives, Tesla's electric vehicles

contribute to reduced air pollution, which is linked to premature deaths
caused by fossil fuel combustion.

5. Sustainability strategies
5.1. Tesla’s Contribution to Reducing Carbon Emissions
Tesla significantly contributes to reducing carbon emissions primarily
through its electric vehicles (EVs) and renewable energy solutions.
The company focuses on displacing fossil fuel alternatives, which
helps lower greenhouse gas emissions across various sectors.

- A single Tesla vehicle avoids approximately 55 tons of CO2

equivalent (CO2e) over its lifetime compared to internal
combustion engine (ICE) vehicles.
- The carbon impact of charging EVs is expected to decrease
over time as the electricity grid becomes greener. This means
that as more renewable energy sources are utilized, the
emissions associated with charging EVs will further decline.
- Tesla’s EVs have lower lifetime CO2e emissions compared to
ICE vehicles, with significant reductions during both the
manufacturing phase and the use phase of the vehicle lifecycle.
- Tesla actively works on reducing the carbon footprint of its
battery supply chain, focusing on key materials like lithium,
nickel, and cobalt. The company analyzes the greenhouse gas
(GHG) contributions of these materials to minimize their impact
- While manufacturing EVs does generate emissions, the total
emissions from Tesla vehicles during their operational life
remain lower than those of traditional vehicles
- Tesla Energy provides renewable energy products that
complement its vehicle offerings, helping consumers transition
away from fossil fuels

5.1.1. What does Tesla give?

Tesla is building electrical cars as well as other equipment, including
solar panels and energy storage products, aimed at reducing carbon
emissions across the globe.
5.1.2. What does Tesla get?
Tesla Company brands itself as a leader in the clean energy transition;
it hikes up customer demand for zero-emission vehicles and energy
products. Tesla attracts environmentally-conscious consumers and
investors alike with its efforts that drive sales and pump up the stock
value.
5.1.3. To understand it
Tesla vehicles displaced millions of tons of CO2 in 2022, which
improves Tesla's credibility as a sustainability-focused company and
leads to more market share in the EV space.
5.2. Renewable Energy Adoption in Tesla’s Operation
5.2.1. What does Tesla give?
Tesla heavily invests in renewable energy, with most of its
Gigafactories powered by solar power, among other clean sources of
energy. This offsets some of the operational carbon footprint created
by Tesla.
5.2.2. What does Tesla get?
By reducing operating costs with renewable energy, Tesla becomes
less dependent on external power grids, hence making its production
even more effective and resistant to changes in energy prices. By
investing in renewable energy for its facilities, Tesla is actually
matching its operations to its mission on sustainability.
5.2.3. To understand it
Tesla vehicles displaced millions of tons of CO2 in 2022, which
improves Tesla's credibility as a sustainability-focused company and
leads to more market share in the electric vehicles space.
5.3. Development of Sustainable Supply Chain
5.3.1. What does Tesla give?
Tesla focuses on ethical sourcing of raw materials and encourages
recycling efforts that enable a supply of recovered materials from
used batteries. This also minimizes the environmental impact of mining
activity and allows for a circular economy.
5.3.2. What does Tesla get?
Tesla's commitment to a sustainable supply chain offers much more
positives than negatives, helping to improve relations with regulators,
suppliers, and consumers alike. Attention to sustainability also helps
Tesla decrease risks due to raw material shortages and possible
future regulatory limitations.
5.3.3. To understand it
Tesla’s battery recycling initiatives reduce the need for newly mined
resources, leading to long-term cost savings and supply chain security.
 References

“Are Electric Vehicles Really Better for the Environment? Yes.”

Earthjustice, 17 January 2024,

[Link]

environment. Accessed 16 October 2024.

“BENEFITS OF ELECTRIC VEHICLES.” e-AMRIT, [Link]

[Link]/benefits-of-electric-vehicles. Accessed 16 October

2024.

Greenspan, Roberta. “Tesla’s Stakeholders & Corporate Social

Responsibility Strategy.” Panmore Institute, 5 September 2023,

[Link]

social-responsibility#google_vignette. Accessed 16 October 2024.

Larsen, Roald. “Decoding Tesla's Business Model and Revenue

Streams.” Untaylored, 19 February 2024,

[Link]

and-revenue-streams. Accessed 16 October 2024.

Perkins, Robert. “European EV car sales build lead over diesel as

region's oil demand shrinks.” S&P Global, 18 January 2024,

[Link]

est-news/oil/011824-european-ev-car-sales-build-lead-over-diesel-

as-regions-oil-demand-shrinks. Accessed 16 October 2024.

“Untitled.” Tesla, [Link]

[Link]. Accessed 16 October 2024.