Marketing Essay Paper on The Shipment Rules and Exporting Strategy for Tesla Motors

The Shipment Rules and Exporting Strategy for Tesla Motors

            Tesla Motors is required to adhere to the inherent shipment rules and exporting strategy. The shipment rules include the possession of sufficient copes of documentation and tiles. The titles and documentations are relevant in the design of the various copies and titles to proof ownership of the vehicles. Thus, the company should ensure it contains all eight copies of documentation to avoid rejection during exportation of the cars to Malaysia. “The physical address of the company and the consignees should be specialized clearly. The fields of contained include physical address and inclusion of P.O. boxes is not allowed.”[1]These documentations are compulsory in the exporting process from California, USA to Malaysia.

Moreover, Tesla Motors should take a cargo clearing the purchase, a certificate of Origin and cargo. The certificate includes the name of dealership, year of vehicle, model of vehicle and the VIM. The documents ensure that all bills related to the vehicles are cleared before exportation. Tesla Motors should follow the lien release process. “This follows the requirement by the customs to have a lien release to be stamped on the letterheads.”[2]The failure to present the lien release document could affect the exporting process of the company.

Additionally, the exporting strategy of the company follows all the shipment rules and exporting regulations. After the vehicles are assembled, they are held for around 1 month for compliance with the inherent regulations. Recently, Tesla developed its Model S assembly plant in California with an annual output capacity of around 20, 000 sedans annually in Fremont, California. Tesla Motors has registered with international logistics companies including DBN carriers Inc who collects the vehicles from their warehouses to the Port of Tanjung Pelepas. The international logistics company organizes the company’s cars into one shipment and vessel carrier destined for Malaysia. The logistics company assists with the customs and regulatory inspection including the confirmation of all the documents and compliance with the set shipment rules and exportation guidelines. “The RORO shipment takes close to 7 weeks before reaching to Malaysia.”[3]After the 7 weeks, the vehicles are reloaded at Port Hercules in Malaysia and transferred to warehouses and showrooms by Trucks.

The shipment model of transportation as well as the usage of the truck is flexible and high reliable. This enhances the capability and reliability of the company in distributing the vehicles to its partners in Malaysia and on the cost efficiency and effectiveness of ocean freight. Additionally, Tesla Motors appreciates the efficiency and cost effectiveness of using the RORO shipping method. The RORO shipping method could be used to ferry many cars to Malaysia using the vehicle carrier ships. These specialized ships ease the transportation of vehicles to oversee from the USA. 

Even though RORO transportation does have global coverage, it has specific routes covering Malaysia. Thus, “Tesla Motors relies on the RORO shipment model to transport a number of its vehicle exports to Malaysia.”[4]The exporting strategy of the company details that a mix of in land and ocean transportation is quite efficient and reliable in enhancing the delivery of the Tesla vehicles to the destination. However, it is important and recommendable to adhere to all shipment rules and exportation approaches. Therefore, Tesla Motors finds RORO shipment model more useful and efficient in transporting its vehicles to Malaysia.

Bibliography

Tesla Motors. “Annual Report 2010: Tesla Motors.” Last modified December 31, 2010. http://ir.teslamotors.com/secfiling.cfm?filingid=1193125-11-54847&cik=1318605.

Vineyard, Jared. “Auto Shipping: RORO vs. Container — Which is better?” Universal Cargo. Last modified January 8, 2013. http://www.universalcargo.com/blog/bid/93765/Auto-Shipping-RORO-Vs-Container-Which-is-Better.


[1] Tesla Motors, “Annual Report 2010: Tesla Motors,” last modified December 31, 2010, http://ir.teslamotors.com/secfiling.cfm?filingid=1193125-11-54847&cik=1318605.

[2]Tesla Motors, “Annual Report 2010.”

[3] . Jared Vineyard, “Auto Shipping: RORO Vs. Container — Which is Better?,” Universal Cargo, last modified January 8, 2013, http://www.universalcargo.com/blog/bid/93765/Auto-Shipping-RORO-Vs-Container-Which-is-Better.

[4] Vineyard, “Auto Shipping.”