Leadership is a characteristic of the person that motivates the motivation of his followers in order to improve their abilities and inspire them to work together to achieve the desired goals, beneficial to all (Vroom & Jago, 2007). Elon Musk (CEO of Tesla Motors) has proven himself to be a successful entrepreneur and influential leader who turned his dreams into reality by achieving each goal one by one, from the success of PayPal to SolarCity and from Tesla Motors to SpaceX. There are two types of leadership, the first being transactional leadership and the second being transformational leadership. Transactional leadership focuses on receiving rewards in exchange for subordinates' efforts. On the other hand, transformational leadership focuses on intrinsic needs; in other words, going beyond the acquisition of short-term goals. Transformational leaders exhibit four characteristics such as inspirational motivation, idealized influence, individualized consideration, and intellectual stimulation (Podsakoff et al, 1990). Therefore, Elon Musk possesses these four characteristics that make him a transformational leader. Say no to plagiarism. Get Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get Original EssayDespite being the most innovative company, Tesla Motors is still striving to penetrate the market in order to change the concept external stakeholders by avoiding the use of a conventional gasoline car and start using a new fully electric vehicle. But the market is large and the product is still in the development phase. Considering only the overall sales of passenger vehicles in 2016, it was observed that more than 74 million vehicles were sold and three major players in the automotive industrial segment (e.g. Toyota, Volkswagen and Daimler) achieved a figure of business worth more than $600 billion. The main car producers were China, Japan, Germany and the United States. This shows that the automotive market has a lot of potential, but introducing such new products can be difficult for companies like Tesla. The product life cycle of Tesla Motors' new cars is still in its initial growth phase, but has passed the introduction phase (see Figure 2). During the introduction phase, the company has few or no competitors, so resources are allocated to developing and marketing the new product, as shown in the Valley of Death curve (Figure 3 ), but the risk of product failure is high. However, in the growth phase, the product is commercialized and the company begins to benefit from the launch of its product (Onkvisit & Shaw, 1986). However, it is an alarming situation for the management of Tesla Motors as the company has reached the growth stage and is still not making the desired amount of profit. Tesla Motors' goal is to produce 500,000 cars every year by 2020. In this case, the company should take additional steps by implementing change management strategies and a results-oriented environment that can help achieve the desired goal. The fact is that the annual production of such a quantity of vehicles by 2020 is not that far-fetched considering the size of the market if appropriate measures are taken. But at this point, Tesla Motors' overall sales can only contribute 1% to total car sales in 2016 (Statista, 2016). Being a revolutionary company does not mean that the odds will be in that company's favor, but there are always flaws and gaps between the desired outcome and.