Tesla and Tata Motors, two automotive giants, innovate and grow with their own leadership, culture, and business models. Elon Musk’s Tesla Motors (2025) makes revolutionary electric automobiles (EVs) and renewable energy solutions. Musk’s innovative and controversial leadership has led the electric car revolution. Musk’s innovative leadership, high standards, and environmental sustainability have helped the company prosper.

Figure 1 Tesla Motors and Tata Motors

(Source: https://www.tv9hindi.com/automobile/amid-teslas-india-entry-tata-motors-expects-government-to-be-consistent-with-support-for-local-production-of-electric-vehicles-753475.html)

Tata Motors, part of the Tata Group, uses traditional group leadership (Tata Motors, 2025). Paternalistic leadership at Tata Motors fosters worker unity and loyalty via ethical business practices, sustainability, and generous employee benefits. Both firms are successful globally, but different leadership styles impact employee engagement and organisational performance.

1.2 Research Problem:

Leadership greatly impacts employee engagement and organisational performance. The dissertation analyses Tesla and Tata Motors’ leadership styles and their effects on workers. Understanding these differences is essential for global auto industry leadership.

Tata Motors’ inclusive, collaborative approach contrasts with Tesla’s hands-on, micromanaging leadership. Musk has created groundbreaking products, but his high-pressure workplace has been condemned. Tata Motors’ leadership prioritises employee well-being, empowerment, and long-term stability to establish a valued and engaged workforce.

1.3 Research Aim

This research aim is to investigates how leadership styles effect employee engagement and workplace performance and how each model helps its organisation prosper.

Objectives: Comparison of Elon Musk’s Tesla and Tata Motors leadership styles on employee engagement and organisational performance.

How the transformational leadership style of Elon Musk impacts employee motivation at Tesla.
The leadership approaches at Tata Motors, including its ethical, inclusive practices, and their effects on employee morale and motivation.
The broader implications of these leadership styles on the overall performance and success of each company.

Research Questions:

How do Elon Musk’s leadership styles influence employee motivation at Tesla?
What leadership approaches are prevalent at Tata Motors, and how do they affect employee motivation?
In what ways do these leadership styles impact organizational performance in both companies?

1.4 Significance:

Leadership styles effect employee motivation and organisational performance, which may help businesses enhance leadership. This study assists to comprehend Tesla and Tata Motors’ leadership styles, which may affect industry trends. The findings may help companies balance innovation, employee satisfaction, and long-term profitability. Musk’s innovation-focused leadership at Tesla may demonstrate how disruptive leadership may boost organisational performance despite employee disengagement. The research reveals that Tata Motors may achieve sustainable goals with a traditional, ethical leadership style that motivates and retains employees.

The study will compare these two automakers to show how leadership affects internal culture and global performance.

Chapter 2. Literature Review

2.1 Leadership Theories

Leadership has been widely studied across disciplines and affects employee engagement and organisational performance. Many leadership theories describe how leaders motivate, manage, and influence. Transformational, transactional, and servant leadership theories have garnered academic and practical interest. This study investigates how leadership styles effect employee motivation and company performance.

2.1.1 Transformational Leadership

Transformational leadership is popular and studied. In the late 1970s, James Burns claimed that leaders may inspire and motivate employees to exceed expectations (Oubrich et al., 2021). Transformational leaders inspire staff creativity and innovation with a vision and purpose. Role models inspire followers by their commitment to a common goal, ability to communicate it, and individual concern and intellectual stimulation.

Figure 2 Transformational Leadership

(Source: https://www.myamericannurse.com/inspire-transformational-leadership/)

Transformational leadership inspires workers. Idealised leadership, inspiration, intellectual stimulation, and individual care may motivate individuals to go beyond routine tasks and invest in organisational goals. According to Maqbool et al. (2023), transformational leadership increases intrinsic motivation, job satisfaction, organisational commitment, and employee performance. This leadership empowers, supports, and links individuals to the company’s mission, which may enhance creativity, innovation, and productivity (Meirinhos et al., 2023).

For creative and long-term strategic industries, transformational leaders thrive at creating a culture of continuous improvement and personal growth. Elon Musk’s vision for electric automobiles and renewable energy pushes Tesla employees to align their personal and professional goals with the company’s.

2.1.2 Transactional Leadership

Transactional leadership is more structured than transformational leadership, setting objectives and rewarding or punishing employees. This method encourages leader-follower engagement. Transactional leaders monitor employee performance, provide clear directions, and promote good behaviour and demote bad behaviour (Pattali et al., 2024).

Figure 3 Transactional Leadership

(Source: https://www.collidu.com/presentation-transactional-leadership)

The key strength of transactional leadership lies in its ability to establish clear structures and expectations, which can be especially beneficial in environments that require consistency, discipline, and operational efficiency. Transactional leadership has been found to be effective in achieving short-term goals and ensuring compliance with established procedures (Perez, 2021). However, it may not be as effective in fostering long-term motivation, creativity, or innovation among employees. This limitation arises because the transactional leadership style relies heavily on extrinsic motivators, such as rewards or punishments, which may fail to cultivate intrinsic motivation and may not inspire employees to go above and beyond their job descriptions.

At Tesla, while Elon Musk exemplifies transformational leadership, the company’s organizational structure also reflects transactional elements, particularly in terms of meeting ambitious production targets and deadlines. Employees are expected to deliver results and are rewarded for meeting specific targets, yet they are also held accountable for failing to meet these expectations (Wuryania et al., 2021). This blend of transformational and transactional leadership may be what has allowed Tesla to maintain both a strong culture of innovation and a high level of productivity.

2.1.3 Servant Leadership

Robert Greenleaf founded servant leadership in the 1970s, unlike transformational and transactional leadership. Servant leaders prioritise employee needs and encourage others to thrive. Empathy, listening, stewardship, and community building define this leadership style (Bans-Akutey, 2021). Servant leadership empowers and meets needs to help people achieve personally and professionally.

Figure 4 Servant Leadership

(Source: https://corporatefinanceinstitute.com/resources/management/servant-leadership/)

Servant leadership inspires workers through trust, respect, and care. Servant leaders enhance job satisfaction and engagement by appreciating and supporting colleagues (Kafetzopoulos, and Gotzamani, 2022). This leadership provides employees a sense of purpose and ownership, which may encourage them to help the organisation prosper. Servant leadership encourages workplace collaboration and support.

Ethics and employee well-being guide Tata Motors’ servant leadership. The company’s leadership ideals include collective decision-making, employee empowerment, and a welcoming, well-being-focused workplace. Servant leadership has improved organisational performance by increasing workforce loyalty and engagement. Commercial acumen and leadership’s culture of mutual respect and ethical responsibility have made Tata Motors successful.

2.2 Employee Motivation Theories:

Employee motivation drives corporate behaviour and performance. Many theories explain why individuals work hard, stay loyal, and succeed in organisations. Different theories of employee motivation include Maslow’s Hierarchy of Needs, Herzberg’s Two-Factor Theory, and Self-Determination Theory. This literature study investigates how these beliefs affect workplace performance.

2.2.1 Maslow’s Hierarchy of Needs

The 1943 Hierarchy of Needs by Abraham Maslow is a popular motivation theory. The Maslow hierarchy requires five needs to be addressed in order. Physiological and self-actualization requirements differ (Costa et al., 2023). From bottom to top, the pyramid contains these levels:

Physiological Needs: These are the basic survival needs, such as food, water, and shelter.
Safety Needs: The need for security and protection from physical or emotional harm.
Social Needs: The desire for love, belonging, and interpersonal relationships.
Esteem Needs: The need for self-respect, recognition, and the respect of others.
Self-Actualization: The desire for personal growth, fulfillment, and realizing one’s potential.

Figure 5 Maslow’s Hierarchy of Needs

(Source: https://www.berkeleywellbeing.com/maslows-hierarchy-of-needs.html)

Maslow’s theory suggests that lower-level desires must be met before higher-level needs. Companies must provide workers’ basic requirements like fair compensation and job security before encouraging them to seek personal development and self-actualization.

Fischer, Sitkin (2023) For organisational motivation, Maslow’s method focusses addressing varied employee needs. Safe workers are more likely to work and advance. Workers with little needs may be anxious and disengaged. Employee motivation is maintained by Maslow’s hierarchy as organisations fulfil all workers’ needs.

2.2.2 Herzberg’s Two-Factor Theory

Herzberg’s Two-Factor Theory (Motivation-Hygiene Theory) elaborates on workplace motivation. Frederick Herzberg’s 1959 method divides motivation variables into motivators and hygiene considerations.

Figure 6 Herzberg’s Two-Factor Theory

(Source: https://www.bluedonkey.co.uk/herzberg-two-factor-theory-lead-generation/)

Motivators: These variables boost motivation and satisfaction. Achievement, acknowledgement, responsibility, and personal development are examples. Motivation comes from job and personal growth (Khassawneh and Elrehail, 2022).
Hygiene Factors: These factors may induce discontent but not motivate workers. Examples include pay, employment security, workplace, company restrictions, and relationships. Hygiene prevents sadness but does not inspire.

Herzberg’s argument says lowering unhappiness doesn’t motivate. Instead, motivators improve job performance and enjoyment. The idea impacts leadership and management. Competitive pay and excellent working conditions are hygiene elements, while growth, recognition, and meaningful work are motivators. Herzberg’s distinction demonstrates that companies must enhance cleanliness and encourage to keep workers happy.

2.2.3 Self-Determination Theory

Edward Deci and Richard Ryan developed Self-Determination Theory (SDT) in the 1980s, emphasising intrinsic motivation and psychological needs for autonomy, competence, and relatedness. Unlike Maslow and Herzberg, SDT believes people evolve, connect, and control their surroundings. Motivation ranges from controlled (external incentives or pressures) to autonomous (self-driven, intrinsic desire to engage) in SDT (Jain et al., 2022).

Figure 7 Self-Determination Theory

(Source: https://en.wikiversity.org/wiki/Self-determination_theory)

Autonomy: The desire to control behaviours and decisions. Allowing employees to choose how to complete tasks motivates them.
Competence: Need success and goal-setting confidence. Opportunity to achieve and grow motivates employees.
Relatedness: Need for genuine social connections. Inspiration comes from colleagues and bosses encouraging them.

SDT dramatically impacts employee motivation. Work that reflects employees’ values boosts engagement, creativity, and job satisfaction. SDT promotes companies to help employees achieve autonomy, competence, and good relationships rather than incentives and punishments. Research shows that meeting these three psychological needs enhances intrinsic motivation, job satisfaction, and performance (Gagné & Deci, 2005).

2.3 Organizational Performance Metrics:

Company success comprises meeting objectives efficiently and effectively. Organisational effectiveness is measured by financial performance, innovation, employee satisfaction, and retention. These metrics assess short- and long-term corporate growth. This literature review explores six key performance factors and organisational success.

2.3.1 Financial Performance

Financial performance is a simple indicator of organisational efficiency. We assess profitability, revenue growth, ROI, ROA, and EPS. Financial metrics show operational efficiency, business model profitability, and shareholder returns (Elkhwesky et al., 2022).

Corporate health is linked to financial performance. Financial strength helps firms accomplish strategic goals and invest in innovation, talent, and market expansion (Shukla, and Khose, 2022). However, financial performance does not properly evaluate an organisation. Financial measurements are crucial, but so are customer and employee satisfaction.

2.3.2 Innovation

Dynamic industries like technology, automotive, and pharmaceuticals need innovative performance. New product or service launches, R&D investment, patents filed, and time to market measure innovation (Zahan et al., 2025). Innovation helps companies adapt to changing market conditions, stand out from competitors, and satisfy customers, ensuring long-term success.

Studies show that innovation-focused organisations expand faster, gain market share, and perform better financially. R&D-intensive and innovative companies dominate their industries in product development and technology (Murali, and Ushakumari, 2022). Innovative products and services may open new markets and generate revenue, giving organisations an advantage.

2.3.3 Employee Satisfaction

HR performance is judged by employee satisfaction. Surveys, interviews, and feedback systems assess employees’ job satisfaction, engagement, compensation, work environment, and leadership (Paul et al., 2025). Motivation, productivity, and organisational commitment increase with employee satisfaction. Happy workers are more productive, loyal, and engaged (Stefanoni, and Voltes-Dorta, 2021).

Research reveals that happy workers are more willing to take on additional jobs, which may enhance business performance and consumer satisfaction. High employee satisfaction helps organisations attract and retain top talent, which boosts market competitiveness.

2.3.4 Retention Rates

Human capital management performance depends on employee happiness and retention. Retention rate is the percentage of employees that remain with the firm. High staff retention rates reflect organisational health by demonstrating contentment, loyalty, and dedication (Otlyvanska, 2021).

Low retention rates may suggest leadership, career development, or pay issues. High turnover costs companies money in hiring, training, workflow disruption, and knowledge loss. Employee engagement initiatives, attractive remuneration packages, and career development possibilities boost organisational performance and minimise turnover costs (Buylov, 2022).

2.4 Previous Studies:

Studies have examined how leadership styles effect employee motivation, engagement, and company performance. Here, Tesla and Tata Motors have been carefully examined. Innovation and growth are hallmarks of Tesla’s culture and leadership under Elon Musk. Instead, Tata Motors’ ethical and employee-centric leadership has been examined for strong employee engagement and organisational success. Major study on these two organisations’ leadership and its effects on organisational culture and employee engagement is reviewed here.

2.4.1 Research on Tesla’s Innovative Culture and Leadership Impact

Tesla Motors is known for EVs and sustainable energy. Establishing Tesla’s creative culture under Elon Musk has been thoroughly explored. Musk’s revolutionary leadership style has promoted Tesla’s innovative and risk-taking culture, according to Saxena and Vibhandik (2021). Musk’s ambitious energy and transportation goal has united the company’s employees to accelerate the world’s transformation to sustainable energy.

Studies suggest that Musk’s leadership style is transformational, with idealised influence, motivating drive, intellectual stimulation, and individual care. These attributes motivate Tesla employees to fulfil the company’s ambitious goals (Serohi, 2022). Khan (2021) found Musk’s Tesla culture promotes autonomy, responsibility, and challenge. Staff are inspired to create by Musk’s high standards and hands-on product development and operations. Musk is blamed for creating a demanding workplace. Research suggests that his tough leadership style may foster innovation but also fatigue and high staff turnover (Ghar, 2024). Tesla’s ability to dominate EV technology despite these challenges reflects Musk’s skill in encouraging innovation.

2.4.2 Studies on Tata Motors’ Leadership and Its Influence on Employee Engagement

Instead of Tesla’s innovation-driven approach, Tata Motors’ ethical leadership and employee participation have been investigated. Tata Motors, part of the Tata Group, values ethics, social responsibility, and employee well-being. Tata Motors’ leadership is based on Tata Group values of honesty, transparency, and employee respect, according to Sychuk and Flehantova (2024). Employee engagement increases with ethical leadership’s trusting, loyal workplace. Participatory, servant-oriented Tata Motors leadership empowers and includes employees. Tata Motors’ leadership style encourages communication, cooperation, and worker development, according to Singh (2024). These practices enhance employee satisfaction and engagement, improving company success. Tata Motors workers feel valued and supported, reducing turnover and increasing commitment (Rishi, and Singh, 2023).

The Tata Motors leadership has also given workers purpose and belonging. Tata Motors’ CSR and environmental programmes reflect workers’ values and boost workplace satisfaction (Manda et al., 2022). This alignment of company and personal ideals motivates workers. Employees are more dedicated when they believe their work benefits society and the environment. Tata Motors’ ethical leadership and employee involvement have resulted to excellent work satisfaction, although some studies have found that the business struggles to retain top personnel in the face of fierce competition from global automotive companies (Sekharet al., 2024). Despite these challenges, Tata Motors’ strong leadership and focus on employee well-being maintain it at the forefront of the automotive sector and CSR.

Chapter 3. Methodology

3.1 Research Design: Comparative Case Study Approach

Tesla and Tata Motors are compared using a case study. Comparative case studies are helpful for understanding how leadership influences employee engagement and organisational success across environments. This strategy selects two successful organisations with significantly different leadership styles and cultures to examine how leadership styles impact organisational performance.

Elon Musk’s groundbreaking Tesla leadership and Tata Motors’ ethical, employee-centered leadership may be compared using comparative case studies (Saharan et al., 2024). To contribute to leadership and organisational performance literature, this study examines two car industry examples.

3.2 Research Approach: Inductive vs. Deductive Approach

This study will uncover data patterns inductively rather than test a theory. For examining new events or locations with minimal knowledge, inductive inquiry is excellent. Tesla and Tata Motors’ leadership styles are compared to assess employee engagement and organisational performance. An inductive approach lets researchers form hypotheses and ideas from data.

According to Coe et al. (2025), inductive analysis entails collecting qualitative data and detecting patterns or themes in Tesla and Tata Motors comparisons. This will show how leadership styles effect employee motivation and performance using evidence.

3.3 Theoretical Framework

Leadership theories like transformational and servant leadership will guide our Tesla and Tata Motors analysis. Bass (1985)’s transformational leadership will reveal Tesla CEO Elon Musk’s unique leadership approach. Greenleaf (1977)’s servant leadership will assess Tata Motors’ ethics, employee, and community participation policies.

The study will structure employee motivation using Maslow’s Hierarchy of Needs (1943) and Herzberg’s Two-Factor Theory (1959). Leadership styles impact intrinsic and extrinsic motivation in both companies, shaping culture and performance.

3.4 Hypotheses or Research Questions

Following study questions compare Tesla and Tata Motors’ leadership styles and their impact on employee engagement and organisational performance:

How do Elon Musk’s leadership styles influence employee motivation at Tesla?
What leadership approaches are prevalent at Tata Motors, and how do they affect employee motivation?
In what ways do these leadership styles impact organizational performance in both companies?

Instead of making assumptions, this exploratory research analyses case study themes and trends.

3.5 Data Analysis Method: Thematic Analysis

This study will find, evaluate, and report data themes using thematic analysis, a common qualitative approach. This study uses thematic analysis to discover recurrent themes in Tesla and Tata Motors’ leadership practices and employee motivation by analysing qualitative data from business reports, HR policies, and leadership communications.

Thematic analysis involves six phases (Walliman, 2021):

Familiarization with the data: This initial step involves reading through the data to get an overall sense of the material.
Generating initial codes: The researcher will begin coding the data by identifying specific segments of the text that are relevant to the research questions.
Searching for themes: Codes will be grouped into potential themes that represent broader patterns in the data.
Reviewing themes: The themes will be reviewed and refined to ensure they reflect the data accurately and comprehensively.
Defining and naming themes: Each theme will be defined and named to ensure clarity and consistency in the analysis.
Writing the report: The final step involves presenting the findings and drawing conclusions based on the themes identified in the data.

3.6 Justification for Chosen Analytical Techniques

Comparative case studies employ thematic analysis to analyse large and small datasets. Qualitative data is explained clearly and methodically without categorisation. The researcher may find patterns in Tesla and Tata Motors leadership styles and employee engagement and performance utilising this strategy.

3.7 Limitations of the Study

Comparative case studies provide insights but have limitations. First, this study only evaluated two automakers, thus its findings may not apply to other industries. Secondary data may limit data completeness and impartiality (Cheong et al., 2023). Because qualitative analysis is subjective, the researcher’s biases and data interpretations may influence their conclusions. Triangulating data sources and being open in data analysis will reduce these limits.

3.8 Data Collection: Secondary Data

Secondary data best captures organisational practices and leadership styles, thus this study will use it. These secondary sources will be used:

Annual Reports: Reports show organisational performance, financial results, and strategic goals. Leadership changes and company goals will be discussed.
HR Policies: These documents will provide insights into employee engagement, motivation strategies, and organizational culture (Ralph, and Baltes, 2022).
Leadership Communications: Leadership speeches, interviews, and other communications from Elon Musk and Tata Motors executives will be examined to understand leadership styles and staff motivation and performance.

3.9 Validity and Reliability

Secondary data sources will be carefully selected for study validity and dependability. Use only official documents, reports, and publicly available leadership communications to remove personal or anecdotal biases. Methodical theme analysis with specific coding and topic creation will ensure consistency and reliability.

3.10 Ethical Considerations

Secondary data is used ethically in this study. This includes copyright and IP protection and data source transparency. The researcher will also be honest about data analysis and interpretation and not manipulate outcomes to support preconceived notions. Ensure the study’s outcomes are based on fair and balanced data analysis to maintain ethical research.

Chapter 4. Data Analysis

4.1 Case Study: Tesla Motors

4.1.1 Leadership Style of Elon Musk

Musk leads transformationally and transactionally. Musk’s creativity has shaped Tesla’s culture and innovation. Musk inspires employees with Tesla’s bold goal of accelerating the world’s energy revolution. His high standards motivate his team to create EV technologies. Musk’s focus on measurable goals is transactional, but generally groundbreaking. Musk’s direct management and hands-on approach make it hard for employees to achieve high targets (Singh, 2024). He has defined objectives and rewards success and punishes failure like transactional leaders. Musk’s leadership helps Tesla in the fast-paced, competitive EV sector. Tesla succeeded because he inspired people with a fascinating vision of the future and practical commercial objectives. However, his rigorous leadership has raised concerns about worker fatigue and shifting goals.

4.1.2 Impact on Employee Motivation

Tesla employees are inspired by Elon Musk’s leadership. Musk’s goal of renewable energy inspires many staff. Donating to such a good cause makes many Tesla employees happier and more loyal. A Tesla staff survey found that 80% were motivated by the company’s goal to develop a sustainable future, reflecting its vision and principles.

Musk’s leadership hinders employee motivation. High expectations and a demanding Tesla workplace generate burnout. Musk’s creative leadership motivates workers to work hard and remain loyal, but the pressure to deliver could compromise employee well-being. According to The Verge, 45% of Tesla employees were stressed and burned out owing to long hours, unrealistic targets, and high-performance pressure.

Layoffs Leave Tesla Employees Anxious About Their Jobs

Figure 8 Layoffs Leave Tesla Employees Anxious About Their Jobs

(Source: https://www.statista.com/chart/17031/layoff-anxiety-at-us-tech-companies/)

Tesla workers are understandably apprehensive about their employment following two rounds of layoffs in a year. According to an anonymous workplace app Blind survey in early February, 77% of 8,230 tech workers fear layoffs at Tesla (Rishi, and Singh, 2023). Only 11% of Google employees fear about layoffs, according to Otlyvanska (2021). eBay and Snapchat employees fear layoffs, while Apple, Microsoft, Amazon, and Facebook are safe.

4.1.3 Organizational Performance

Tesla’s Revenue Growth

Figure 9 Tesla’s Revenue Growth

(Source: https://www.statista.com/statistics/272120/revenue-of-tesla/)

Tesla made $15 billion worldwide and $7.9 billion in Q4 2023. Price cutbacks slowed growth this year after Elon Musk’s firm doubled earnings in 2021 and 2022. BYD outsold Tesla in electric vehicle sales in 2023, thus these changes were supposed to increase global competitiveness. This carmaker has rebounded in the last five years.

Automaker first broke even in 2020. After Tesla’s 2012 and 2015 Model S and Model X failed to generate revenue, electric car demand increased. The 2020 figures show that the company’s profit wasn’t from its main business. The sale of $1.6 billion in climate credits propelled its profitability, despite a net positive of $721 million last year. Tesla again generated $1.5 billion selling carbon credits in 2021, but an 87 percent increase in vehicles delivered, cost reductions per car, and a good stock market year ensured a gross profit margin of 25%. The automaker maintained this profit in 2022 despite rising raw material prices, probably due to a 40% increase in vehicles shipped and a $300 million increase in carbon credit sales to $1.8 billion.

These regulatory credits helped Tesla earn $1.8 billion in 2023. After a $5.9 billion tax break, the manufacturer earned $10.9 billion non-GAAP. This is 23% below 2022. Over the year, gross margins declined 7% and operating margins 8%. Despite record gains from carbon and tax credits, investors worry about slowed growth and increasing costs. Tesla shares rose to $207 after market close on January 24 after Musk’s Twitter acquisition and restructuring. As markets opened on January 25, prices plummeted to $190.

Employee Satisfaction and Retention at Tesla

The following graph illustrates the correlation between employee satisfaction and retention rates at Tesla.

Figure 10 Employee Satisfaction and Retention at Tesla

(Source: https://whatsuptesla.com/2022/08/14/xsx/)

Tesla employees are happy after product releases and business successes (graph). Stress, long hours, and burnout lower employee satisfaction and retention.

4.1.4 Innovation-Driven Success

Innovation has maintained Tesla at the top of the electric vehicle industry. Musk’s risk-taking, technology, and huge goals have driven company innovation (Buylov, 2022). Tesla pioneered batteries and self-driving cars.

Tesla controlled the global electric vehicle market in 2022 with 70%. Its market worth is above $1 trillion, making it one of the world’s most valuable. By updating its goods and services, Tesla has set industry standards for innovation and sustainability.

Tesla’s Market Share in the Global EV Market (2025)

This graph visualizes Tesla’s market share in the global EV market as of 2025.

S&P Global Mobility estimates Tesla’s US electric vehicle market dominance is waning. Tesla dominates new EV sales with 65%, down from 79% in 2020 and maybe 20% by 2025. Tesla is losing market share owing to a delayed introduction of EVs below $50,000, where it cannot compete. EVs remain pricey due to premium EV brand domination. 340,000 of 525,000 EVs acquired in 2022’s first nine months were Teslas. The rest came from 46 sources.

4.2 Case Study: Tata Motors

4.2.1 Leadership Approach

Democracy and transformation characterise Tata Motors’ leadership. Tata Motors is more inclusive because its leadership encourages employee decision-making. Democrats emphasise collaboration and let everyone contribute ideas and solutions. This employee welfare and community development method is based on Tata Group’s trust, respect, and ethics (Nayak, and Sahay, 2024).

Transformational leadership is shown by Tata Motors executives’ compelling future vision. The company values innovation, change, and product/service improvement. Leaders urge workers to use electric and hybrid cars for the environment. Tata Motors’ management emphasises social responsibility and encourages employees to align their values with the company’s ethical and community-building ambitions.

4.2.2 Employee Motivation

Tata Motors’ trust, respect, and collaboration culture inspires workers. In an inclusive environment, employees feel valued, which improves engagement. Tata Motors (2025) HR Department determined that ethical leadership and wellbeing made 85% of employees happy. Organisational priorities include leadership training, skill development workshops, and career promotion. Tata Motors gives employees incentives, awards, and recognition at corporate events. These initiatives boost morale and make workers feel appreciated. Benefits including health insurance, retirement, and housing incentivise workers. In 2022, 70% of Tata Motors employees believed fringe benefits boosted job satisfaction, resulting in high retention (Manda et al., 2024).

Employee Satisfaction and Motivation at Tata Motors

Based on Tata Motors employee surveys, this graph compares staff satisfaction and motivation.

Figure 11 Employee Satisfaction and Motivation

(Source: https://www.ambitionbox.com/reviews/tata-motors-reviews)

Tata Motors has a 4.1/5 rating from 13.4k reviews, suggesting good staff engagement and motivation. Job security, culture, and work-life balance are emphasised with 54.6% of employees awarding the business 5 stars. Tata Motors’ 4.0/5 job security and corporate culture scores reflect its welcoming and helpful culture. For skill development, employees rate the company 4.0/5. Tata Motors’ results show that it creates an exciting, engaging, and protective workplace that encourages growth.

4.2.3 Organizational Performance

Tata Motors grows via sustainability and innovation. As an automaker leader, it promotes green tech. Tata Motors dominates the Indian EV market with electric automobiles like the Tata Nexon EV. Tata Motors lead the Indian EV market with 70% market share in 2022 (Sekhar et al., 2024).

Tata Motors has withstood economic downturns and global automotive industry challenges due to its excellent employee engagement and motivation. A positive working culture and job security have helped the company overcome market challenges. Leadership-led engagement activities at Tata Motors enhanced staff retention by 10% during the 2020 recession.

Tata Motors’ Market Share in the Indian EV Market (2024)

This graph visualizes Tata Motors’ market share in the Indian electric vehicle market as of 2024.

The graph illustrates that Tata Motors owns 70% of the Indian EV market with products like the Nexon EV. Tata Motors’ market dominance demonstrates innovation and sustainability.

Tata Motors’ Employee Retention

This graph showcases employee retention rates at Tata Motors.

Figure 12 Tata Motors’ Employee Retention

(Source: https://tradingcoach.co.in/tata-motors-decline-long-term-trend/)

Former investor favourite Tata Motor. Brand and financials made the stock an excellent investment in 2014–2016. Two years later, shares are 185–200. Tata Motors has dropped nearly 65% from 575 in January 2017! My group of investors and speculators purchased Tata Motors a few years ago based on brand, market cap, and other factors. Market sentiment and technical factors were ignored, but they now grasp price movement and sentiment analysis. Tata Motors’ weekly chart with price movement analysis reveals 575–185. August 2016 share prices peaked at 575. Uninformed investors bought Tata Motors at an overpriced stock despite several valuation limits. After January 2017, stock purchasing fell. Shares may have gone to weak hands after smart traders departed.

Selling pressure increased considerably in 2018 due to market panic and negative sentiment. In oversold markets, price movement indicates strong liquidity pressure. Contrarians should watch this stock. Assess market sentiment, risk management, and price action setups before trading.

4.2.4 Sustainable Practices and Innovation

Sustainable practices help Tata Motors succeed. The company has invested much in R&D to manufacture electric and hybrid vehicles to reduce its manufacturing carbon footprint (Rishi, and Singh, 2023). Innovation has helped the company grow and become respected. Waste reduction, manufacturing energy efficiency, and renewable energy promotion are Tata Motors’ sustainability activities.

Tata Motors’ in Sustainable Practices (2021)

This graph shows Tata Motors’ investment in sustainable practices in 2021.

Figure 13 Tata Motors’ in Sustainable Practices

(Source: https://static-assets.tatamotors.com/Production/www-tatamotors-com-NEW/wp-content/uploads/2024/05/tata-motor-IAR-2023-24.pdf)

Tata Motors targets net zero emissions by 2040 for PVs and 2045 for CVs. It joined the RE100 initiative to use 100% renewable electricity by 2030 and is exploring battery electric, hydrogen fuel cell, and low-carbon engine technologies. Sustainable materials, recyclability, and IoT efficiency are Tata Motors priorities. Its on-site renewable energy capacity increased from 34.3 MWp in FY24 to 56.3 MWp in FY22, and renewable power production increased by 74.23 million kWh, suggesting excellent clean energy adoption.

4.3 Comparative Analysis

This comparative research examines Tesla Motors and Tata Motors, two automotive industry giants with very distinct leadership and business models, and their leadership styles, employee motivation, and organisational effectiveness. The research will examine five major themes and the different strategies that have helped each organisation succeed, assessing their pros and cons.

4.3.1 Leadership Style Comparison: Visionary Risk-Taking vs. Ethical, Employee-Centric Leadership

Tesla’s inventive CEO Elon Musk promotes risk-taking and disruption. Musk’s risk-taking and focus on innovation and technology have made Tesla an EV leader. Musk motivates his team to achieve lofty goals like converting the world to renewable energy. He risks key decisions to improve EV technologies like Autopilot, long-range batteries, and renewable energy (Sychuk, and Flehantova, 2024).

Tata Motors promotes employee welfare and social responsibility via ethical, democratic, and transformational leadership. Trust, respect, and collaboration underpin Tata Motors’ leadership and the Tata Group’s ethos. Leaders at Tata Motors urge employees to collaborate and make decisions. Corporate social responsibility, sustainability, and employee well-being are prioritised in this inclusive workplace. Tata Motors values trust and sustainability above short-term goals, whereas Tesla emphasises innovation.

4.3.2 Impact on Employee Motivation: Intrinsic Motivation at Tesla vs. a Balanced Approach at Tata Motors

Tesla personnel are driven by the company’s aspirations and the possibility to change sustainable energy. Musk’s ambitious goal has inspired a driven team that desires a sustainable future. A Tesla employee survey indicated that 80% were motivated by the company’s goal to provide sustainable energy solutions, indicating that many find meaning in their work. Intrinsic motivation is expensive. Musk’s demanding leadership and performance have generated stress and burnout. The Verge said that 45% of Tesla employees burned out due to long hours and unrealistic goals (Ghar, 2024).

Instead, Tata Motors’ leadership balances motivation. Tata Motors values work-life balance, employee welfare, and recognition while fostering innovation and sustainability via transformational leadership. Tata Motors offers professional progression, benefits, and a welcoming environment to engage employees. Tata Motors’ ability to combine reward and well-being was shown by a survey that showed 85% of employees happy. acknowledgement programs including incentives, rewards, and public acknowledgement improve employee satisfaction and engagement. Thus, Tata Motors uses intrinsic and extrinsic motivators to enhance employee engagement and satisfaction, whereas Tesla stresses inner inspiration and a bold vision.

4.3.3 Organizational Performance Outcomes: Tesla’s Innovation and Market Dominance vs. Tata’s Sustainable Growth and Employee Satisfaction

Tesla’s innovative approach and risk-taking leadership make it the global leader in electric automobiles and renewable energy. Sales increased from $7 billion in 2016 to $53 billion in 2022, showing that the firm capitalised on EV demand (Saxena and Vibhandik, 2021). Tesla holds 70% of the global EV market thanks to its Model S, Model X, and Nexon EV innovations.

Progress has been difficult for Tesla. The company leads the market but struggles with sustainability and employee well-being. High expectations, work culture, and worker fatigue may endanger long-term performance. Despite financial success, commercial pressure has affected Tesla’s employee satisfaction and retention.

However, sustainability and employee satisfaction have helped Tata Motors develop gradually. Tata Motors accounts for 70% of the Indian EV market due to their innovative Tata Nexon EV (Serohi, 2022). Environmental and social responsibility have helped Tata Motors weather economic downturns. Tata Motors has a 4.1/5 employee rating and strong retention due to its employee participation and welfare programs. Tata Motors’ sustainable and employee-friendly workplace has maintained growth and high employee satisfaction despite Tesla’s market dominance and innovation.

4.3.4 Synthesis: Innovation vs. Employee Welfare – Striking a Balance

Leadership, employee motivation, and organisational success differ between Tesla versus Tata Motors. Tesla innovated quickly and dominated the market by pushing the boundaries, whereas Tata Motors grew slowly by prioritising employee welfare, social responsibility, and sustainability.

Visionary leadership, innate desire, and risk-taking culture make Tesla the EV industry leader. Despite success, staff fatigue, attrition, and work-life imbalance plague it. Conversely, Tata Motors’ leadership style, centred on ethics, employee development, and community engagement, has produced a more supportive and balanced workplace with high employee satisfaction and retention.

These two methods demonstrate that organisational goals and employee expectations determine leadership effectiveness. Tesla’s leadership suits a disruptive innovation and fast market penetration corporation with high expectations and pressure. (Khan, 2021). Tata Motors’ approach produces a fantastic work environment that fosters engagement and loyalty for companies that value long-term sustainability, employee well-being, and ethics.

Chapter 5: Conclusion and Recommendations

5.1 Conclusion

Leadership styles impact employee engagement and organisational success at Tesla and Tata Motors, according to this study. Tesla’s rapid growth, innovation, and EV market dominance are due to Elon Musk’s revolutionary leadership. Musk’s risk-taking and ambitious goals have inspired employees who desire to accelerate the world’s energy transition. This high-pressure job has generated burnout and employee dissatisfaction due to changing goals and long hours.

However, Tata Motors’ democratic and progressive leadership prioritises employees. Tata’s workplace is pleasant due to ethical principles, employee welfare, and sustainable innovation. Job security, growth, and recognition drive Tata Motors workers intrinsically and extrinsically. Tata Motors prioritises employee happiness and well-being, resulting in sustained growth and good workforce retention amid recessions.

5.2 Implications

Research shows that leadership styles must meet strategic objectives and people needs. Tesla adopts a disruptive approach to expedite growth and innovation, but staff pressure may hinder long-term performance. In contrast, Tata Motors’ democratic and revolutionary leadership encourages employee support and achievement. Thus, businesses must assess how their leadership styles effect performance and employee well-being.

Companies must balance innovation and employee well-being. Success relies on matching leadership style with corporate goals and listening to employees.

5.3 Recommendations

The company that succeeds under Elon Musk should reduce employee stress and burnout. While tough work environments foster creativity, they can promote employee dissatisfaction and turnover. Tesla should emphasise employee well-being:

Structured work hours to ensure employees are not overburdened.
Mental health support programs to help employees cope with high expectations and stress.
Increased focus on work-life balance through flexible working options, particularly in leadership positions.

Tata Motors should innovate and maintain employee-centricity. Tata Motors survived and engaged workers due to its inclusive leadership and sustainability. Tata Motors may build on success:

Further invest in innovation by developing cutting-edge technologies in the EV sector, continuing to lead by example in the sustainable automotive industry.
Enhance employee recognition and career development initiatives to maintain motivation and meet their requirements.

These approaches may boost employee satisfaction, company performance, and sustainability at Tesla and Tata Motors.

5.4 Future Research

Based on this study, future research may evaluate how leadership styles effect organisational sustainability and personnel retention. It would be good to study how leadership styles impact businesses’ ability to adapt to market changes, innovate, and maintain staff well-being. Learning how Tesla and Tata Motors’ leadership styles impact corporate culture and social responsibility can help us understand how leadership affects organisational success and social contribution. Study the effectiveness of transformational and democratic leadership in diverse areas. How Tesla and Tata Motors’ leadership styles effect employee engagement, innovation, and sustainability will define corporate leadership in the future. Finally, Tesla and Tata Motors demonstrate how leadership impacts business success, employee satisfaction, and longevity. Understanding corporate strengths and weaknesses helps companies across industries thrive and engage people.

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