Question

1. In a 2006 blog entry titled The Secret Tesla Motors Master Plan, Elon Musk outlined his company’s vision and strategy for the electric vehicle industry. His vision was stated as “to help expedite the move from a mine-and-burn hydrocarbon economy towards a solar electric economy” in order to create a sustainable future. His Secret Master Plan to reach this overarching goal had four steps:

Build a sports car

Use that money to build an affordable car

Use that money to build an even more affordable car

While doing above, also provide zero emission electric power generation options

Do you think Tesla has a winning strategy? Discuss, using the 3 tests provided for a winning strategy (you can use the tests I provided, or the tests given by the textbook). Clearly state your reasoning. What information would you need to have in order to answer that question?

Answer 1

Yes, Tesla has a winning strategy it was different from other automobile dealers that were following traditional approach.

Tesla manufacturing cost and cost of goods sold is very low because it owns the entire supply chain from manufacturing to distribution. And one more thing Tesla never hold a huge amount of inventory and such inventory cost reduction was achieved by batch production after prepaid orders were obtained.

Tesla engineers first designed a sports car named the Roadster in 2008 the 2400 Roadster sold were on the road in more than 30 countries.Instead of trying to build a relatively affordable car that it could mass produce and market but tesla took exact opposite of it means it started creating a compelling and charismatic car.After establishing it's brand it started reinforcing it's business by making affordable car and then developing a car which is called electric vehicle.