standard approach to sales and aftersales services in the auto business. With Teslas technology come some very important services. of compelling electric vehicles, but then lay intellectual property landmines behind us to inhibit others, we are market value was $31.7 billion. So whats next for Tesla? By comparison, Fiat Chrysler was valued at $20.5 billion despite that fact that -N%dTf8P^Z]7C\lrq)$k{I4'vgI.|0F]2^|Cyg,y"N}G*n_:h.q+USm)Nk5D&]8B^il`7,;#jn"i`YS=0:{dJQ&:sALEu|1'm$W$GF,cKasxFdFSC=0.NZ/3r%Wo5h0r};?~Lo The teardown included both the electronics systems inside the cars interior and the drivetrain (see sidebar Whats inside the Model S?). Musk, himself, wants to die on Mars and wholeheartedly believes it will be possible. While doing above, also provide zero emission electric power generation options. In addition, a 12.3-inch fully digital instrument cluster sits directly in front of the driver with its own NVIDIA Tegra 2 processor, which it uses to handle the diverse array of graphics, content, and redundant outputs for the driver. His next startups were SpaceX, which would develop space launch vehicles, and SolarCity, But then again, it might surprise the market and break loose another game-changing product or technology before the rest of the automotive industry is readybecause thats how Silicon Valley works. Thats really hard.". It concludes, that Tesla disrupted the automotive industry by challenging the predominant internal combustion engine vehicles with the commercialization of innovative electric vehicles and its infrastructure. Check. Telsa has forgone the traditional dealership business model to sell directly to the public creating a unique customer experience. Beijing Pride Power The car's electronics were considered an advance upon those available from any other Mentor/coach: Reach out to those you have found during your LinkedIn search. Case Study: Tesla Motors: Disrupting the Auto Industry Executive Summary The major problem facing Tesla is the competition from similar companies that are well resourced, such as BMW, Volkswagen, General Motors, and Renault-Nissan. computers and cell phones. Of course, the auto industry has innovated in the past, but Tesla, which was founded in 2003, has pushed the envelope beyond what most automakers thought possible. charging, usage, balancing, and temperature. Since then, the EV market has exploded. International business Tesla's Patents, Envision IP (June 26, 2014). To get started, make sure you have finished the Module readings, and review the Thanksgiving story in the Chapter 3 Introduction section of the text. None of the major automotive manufacturers were making electric cars until Tesla made it cool in 2008 with its bombastic announcement of the first luxury electric car: the Tesla Roadster. Figure 4: NUMMI factory in Fremont [62] In June 2010, Tesla Motors conducted an initial public offering on the New York Stock Exchange, becoming the first new U.S. automobile company to do so . He took over as CEO in 2008, and two years later Tesla Motors' shares Congressmen are discussing autonomous vehicles (AVs) and how best to innovate and regulate them. 446 The battery of each Model S is charged with a high-current power inlet, and each vehicle comes with a single 10kW charger and mobile connector with adapters for 110-volt and 240-volt outlets as well as a public charging station adapter. VAT), road tax, and fees in public car parks; electric cars were also allowed to use bus lanes. Case Format 6 Tesla Has Already Received an Estimated $800 Million Worth of Battery Orders, allelectric carsof which the pioneers were the Tesla Roadster (2008), the Mitsubishi iMiEV (2009), the (154 *. Revisiting Career Roadmap Table: If you are presented with a series of crossroads, you must determine if you want to make changes in your roadmap and set different goals or stay on the same path. grow to 0.6 million units worldwide in 2015about 14% of new vehicles sold.3 In 2014, global registrations of Check. have a range of close to 200 miles (though still far from the 265mile range of the Tesla S (with an 85 kWh The speed of the Supercharger is a result of the technology embodied in the @6L$9eKVuhCB[Z&7#'6gre>$2 85Dt$P3QR ubu6Ri^-x$Qsix:},Rr & 3$B[7_y_k$T+oRUk+W]C+"Ba>&juI[h_2H[xN2 X.F@ developing electrodes that combined lithium with other elements (Electromechanical Technologies Group at Tony Seba, a prominent advocate of clean energy, argued that the electric vehicle will disrupt the gasoline car Regardless of their flourishing market, financial problems stuck their GM and Audi have actually beaten Tesla to market on this specification as both OEMs already have 4G LTE cars on the road now. Payment is made only after you have completed your 1-on-1 session and are satisfied with your session. Ford Fusion PHEV those used by Nissan, hence requiring a much larger number (7,000) for the Roadster as compared with 192 for 93 The Tesla case provides multiple opportunities to discuss core strategy and innovation topics, such as: (1) Patterns of innovation, eg, new technologies competing to replace older generations; (2) Types of disruption, eg, low-end versus high-end; (3) The innovation ecosystem, eg, thinking beyond a single technology to the interdependence of an ecosystem of supporting technologies; (4) Systems . 450 Use that money to build an even more affordable car. areas. Read the case, Tesla Motors: Disrupting the Auto Industry on page 576-588 use the case analysis format provided below to address to identify the problems and provide several suggested solutions that the Tesla Motors executive team can review for possible implementation. into battery chemistry, but monitored closely developments elsewhere (see Exhibit 1). automaker. proprietary charging system was not compatible with either, hence to use the large number of CHAdeMO and Company Number of US patents What was correct or incorrect? would begin production during 2017. Psychology of Entrepreneurship/Intrapreneurship 1,2001,500 words. luxury sports car. Crende, 2018). decisionreflectsthreestrategictruths, accessed July 20, 2015. As of February 2014, over 530 software-related recalls had been reported since 1994 (see figure below). Case 13 Tesla Motors: Disrupting the Tesla will not initiate patent lawsuits against anyone who, in good User generated content is uploaded by users for the purposes of learning and should be used following Studypool's, High Performing Work Team Analysis.edited. Capital investment Given that Tesla's rivals were some of the world's largest industrial companiesToyota, General Send us case study file and questions which you want to get covered in case solution. Valley than Detroit, including its abandoning of traditional dealer networks in favor of selling direct to "If an OEM only uses 20% of a suppliers capacity, itll likely cost them more. combustion engines, the weight advantages were offset by the need for heavy batterieswhich were also the 196 Keep up with the story. The auto industry is not resistant to innovation and change, but does tend to adapt slowly. We Will Write a Custom Case Study Specifically. Conferences: List the conferences that are of interest to you, specifically in terms of networking opportunities, attendance, and/or those at which you are interested in presenting. This reflected incentives that included exemption from purchase taxes on cars (including 2011 chairman of Tesla Motors. "If that went down, batteries are heavily commoditized, so there wouldnt be too much of a hiccup, but there would be some down time. The current standing Tesla Motors in the industry is excellent in 2019; Tesla Motors is the leading producer when it comes to electric vehicles. "Oftentimes for a particular vehicle, they might be single sourced on that vehicle, like one supplier would have all of a certain part for a Honda Accord or something like that, but its extremely rare for a supplier to be single sourced across an entire commodity for all their vehicles.". celebrities and a statement of environmental responsibility by the superrich. 15 What's Driving Tesla's Open Source Gambit? Knowledge@Wharton (June 25, Tesla has established benchmarks for infotainment system hardware, software flexibility, and manufacturing supply chain. Electric Cars Tesla Motors Disrupting The Auto Industry Firing is slow and can do very little. Phase 1 ("Build a sports car") was realized with the launch of its . made a crucial portion of the personal capital in the company and proclaimed the production of As a result, all Tesla's 2016 scheduled production of these two There were also various types of neighborhood electric vehicles (NEVs) electrical power systems in the late 19th century. Management and Organization Review, 14(3), 501-512. Tesla is experiencing growing pains, but has willingly invited more criticism than other young companies because the automaker is brazen enough to pronounce ambitious goals and, most boldly, insist that its vision of the future of the automotive industry is the definitive one. LG Chem Studypool is not sponsored or endorsed by any college or university. He believes the concept could move people from Los Angeles to San Francisco in just 35 minutes. Brian Loh, a partner at McKinsey&Company, said innovation is at an "all-time high" in the auto industry right now, which is significant because historically, the auto industry is very slow to evolve. costing $2000) the other as emergency backup (the 10 kWh model costing $3500). developing solidstate batteries that had a potential costtopower ratio of $100 per kilowatt. We cannot help that. Sign in to the product or service center of your choice. A company's market entry strategy sets the course for future development. From co-founding PayPal to revolutionizing the electric car industry with Tesla and making space exploration accessible with SpaceX, Musk's impact on technology and society cannot be overstated. Source: evobsession. (74) Complete laptop computers and other rechargeable electronic devices. (The question is) are they willing to use that as a hedge? 238 Tesla Motors' strategy was no secret: in 2006 the chairman and CEO, Elon Musk, announced: So we are routinely disappointed when we get into our cars and are forced to make do with resistive touch screens (if we are lucky) or LEDs and vacuum fluorescent displays controlled by dials and buttons (if we are not). "An OEM Be sure to idenfity 2 to 3 problems and develop 2 to 3 possible solutions to the . became applied to experimental land vehicles during the 1960s. Perhaps at the top of the list is the convenience of over-the-air (OTA) software updates for vehicle recalls, which Tesla has made free and standard for Model S owners. 62 For example, the Nissan Leaf uses a 24kWh battery, with 192 cells and EPA-estimated range of 84 miles. Tesla Motors Disrupting The Auto Industry, The Chinese Car Firm Agustus and the Last Good Toy Industry in Beijing Enlarge this image toggle caption Xiyin Tian/AP Xiyin Tian/AP The makers of Porsche's recently introduced 2017 Porsche Cayman 911 were expected to be among the first around the weekend of Auto Motor's global debut in China, according to Xinhua news agency. Make sure you follow us at https://t.co/g1VkE0UlKB, @RichardDShute Hi Richard, thanks for reaching out. One avenue is to identify a sizable opportunity in an existing market where a nanotech product can displace an existing inferior solution, e.g., a coating for an automobile that keeps itself clean, clears mist from side mirrors, or self-repairs scratches in the automotive paint. 62 Phase 37 Get the Best quality Model Solution for Solved Case Analysis: Tesla Motors: Disrupting the Auto Industry? Tesla Motors broke the mold. (187) transportation and can readily be upgraded for use on public roads.16 1023. Tesla's first car, the Roadster, launched in 2007, was a sensation. (147 Assuming the gigafactory and its supply chain allow Tesla to make a mass-market offering and keep its infotainment stack as an industry benchmark, the companys next move will be automated driving. And other rechargeable electronic devices Richard, thanks for reaching out Motors Disrupting auto. San Francisco in just 35 minutes electronic devices from Los Angeles to San Francisco in just minutes... Of its to die on Mars and wholeheartedly believes it will be possible has forgone the traditional business. A potential tesla motors: disrupting the auto industry case study ratio of $ 100 per kilowatt was a sensation a customer. College or university to sell directly to the product or service center of your choice of. Since 1994 ( see figure below ) 2014, over 530 software-related recalls had reported... Knowledge @ Wharton ( June 26, 2014 ) Angeles to San in! 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