Tesla: Testing a Business Model at its (R)Evolutionary Best
- Subject Code :
UNL3012
Case 1
Chatterjee, S., & Terez, D. (2018). Tesla: Testing a Business Model at its (R)Evolutionary Best. Ivey Publishing (9B18M033), 1-14.
Case 1: questions for discussion
The following questions are intended to initiate your thought process. The list is not exhaustive and you are encouraged to develop your own analytical perspectives.
- Describe the state of the car industry (as a whole, not just electric / hybrid cars) in the USA when Tesla started its business. What were the main characteristics and the main challenges of the car industry at the time?
- How did Tesla challenge and/or disrupt the traditional business model of the automobile industry? Be specific in your answers and write down as many points as you can think of. For each item, think about why and how Tesla decided to do things differently.
- Can the investment in the battery Gigafactory be justified based on Teslas projected car sales? Explain the reasons for your answer.
- What was the rationale behind Teslas acquisition of SolarCity? Do you think it was a strategically good move on Musks part? Why?
- As Teslas business evolves and as the markets for EVs and AVs continues to grow, how can Tesla adjust its business model to remain viable?
- How can Tesla convince investors to continue investing in it, given its current profit margins?
