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Tesla Motors – Case Analysis Questions (100 points)
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- Many analysts say that Tesla’s success lies in their internal resources and capabilities. In particular, management centered on Musk himself has received high marks as well as their ability to innovate and apply new technologies in their products.
Please explain whether these two pass the four requirements (rare, valuable etc.), suggesting that they are indeed core competencies. When doing so, take into consideration that the relatively benign competition in all-electric sedans is about to change. BMW recently introduced the i3 and i8 and is likely working on a sedan while Porsche promised an all-electric sedan by the latest 2020 (see article, http://blog.caranddriver.com/its-on-like-elon-porsches-mission-e-electric-sedan-headed-to-production/).
- Tesla is building a battery factory in Nevada with an enormous capacity far exceeding current and, some say, also exceeding future battery demand. Explain why you think Elon Musk is pursuing this factory and how it plays in with Tesla’s overall strategy.
- Tesla just finished merging with another Elon Musk firm, SolarCity. Explain how this merger plays in with Tesla’s overall strategy.


