Introduction According to Adam Jonas, an analyst at Morgan Stanley, “Tesla may be in position to disrupt industries well beyond the realms of traditional auto manufacturing.” (Hettich & Muller-Stewens, 2014) This case study is about how Tesla recognized certain trends, innovated their business model while creating value for consumers, and sustained a competitive advantage as competitors inside and outside of the auto industry are advancing and catching up. Furthermore, what challenges are ahead and does it make sense for Tesla to introduce a low-cost Model 3 for the general public.
Internal and External Elements Tesla’s initial goal was to manufacture exquisite electric sport cars, Roadster, with superior performance, however, on the verge of bankruptcy as each Roadster cost $140,000 to produce and sold for $109,000, Mr. Elon Musk, Tesla’s CEO, shifted from the niche market sports car design of the Roadster to an elegant, modular, and flexible four-door sedan, Model S. In addition, Tesla persuaded Daimler to convert their Smart cars to electric by buying …show more content…
(O’Shannassy, 2008) One area of deficiencies revolves around publicly available Electric Vehicle Supply Equipment (EVSE), accessibility to Supercharger technology, and the deployment of compatible charging capabilities throughout the infrastructure to ensure consumers confident. Also, regulatory conditions could change quickly as governments reduce ZEV credits or restriction of selling cars directly to consumers lower the amount of cars being sold. To confront this issue, Mr. Musk is prepared to lobby and fight these battles in Washington. (Hettich & Muller-Stewens,
Internal and External Elements Tesla’s initial goal was to manufacture exquisite electric sport cars, Roadster, with superior performance, however, on the verge of bankruptcy as each Roadster cost $140,000 to produce and sold for $109,000, Mr. Elon Musk, Tesla’s CEO, shifted from the niche market sports car design of the Roadster to an elegant, modular, and flexible four-door sedan, Model S. In addition, Tesla persuaded Daimler to convert their Smart cars to electric by buying …show more content…
(O’Shannassy, 2008) One area of deficiencies revolves around publicly available Electric Vehicle Supply Equipment (EVSE), accessibility to Supercharger technology, and the deployment of compatible charging capabilities throughout the infrastructure to ensure consumers confident. Also, regulatory conditions could change quickly as governments reduce ZEV credits or restriction of selling cars directly to consumers lower the amount of cars being sold. To confront this issue, Mr. Musk is prepared to lobby and fight these battles in Washington. (Hettich & Muller-Stewens,