Tesla, Inc. case study

review the Tesla, Inc. case study. The case study
describes the rise of Tesla Motors, an electric vehicle company founded in 2004 by
electric inventor Martin Eberhard and South African innovator, Elon Musk. The case
details the motivation of the two men, their personalities, and the conflicts they went
through to develop the company. It also provides an overview of the challenges and
opportunities of competing in the electric vehicle space; discusses Tesla's strategies for
manufacturing, marketing, and distributing the cars; and points to key questions about
Tesla's future.
Instructions:
Review the Tesla Case Study. Also, feel free to utilize information from the Tesla videos
found in Reading and Resources in this unit.
Using Porter's Five Forces model:
• Describe in detail the challenges and opportunities of competing in the electric
vehicle industry.
o You will need to create a section for each of the five forces when
answering the question in detail.
• Finally, describe Tesla's strengths and weaknesses.

Sample Answer

The electric vehicle (EV) industry is a dynamic and rapidly evolving sector, characterized by both significant opportunities and formidable challenges. Applying Porter's Five Forces model provides a comprehensive framework to understand the competitive landscape and inherent difficulties.

Porter's Five Forces Analysis of the Electric Vehicle Industry

1. Threat of New Entrants (Moderate to Low)

The threat of new entrants in the EV industry is generally moderate to low due to several high barriers:

Capital-Intensive Nature: Establishing an automotive manufacturing company, especially for EVs, requires enormous capital investment in R&D, factories, specialized machinery, and supply chains. This financial hurdle deters many potential new players.

Technological Complexity & IP: Developing advanced battery technology, power electronics, and sophisticated software for autonomous driving requires significant expertise and proprietary intellectual property, which takes years to build.

Tesla, Inc. case study

Sample Answer

Porter's Five Forces Analysis of the Electric Vehicle Industry

1. Threat of New Entrants (Moderate to Low)

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