Question
1. Within a few short months between the summer of 2019 and early 2020, Tesla added more than $100 billion to its market cap. Do
1. Within a few short months between the summer of 2019 and early 2020, Tesla added more than $100 billion to its market cap. Do you believe that Teslas stock market valuation making it the second most valuable car company globally is rational or do you think it is a hyped-up overvaluation?
2. What business model is Tesla pursuing? How is Teslas business model different from traditional car manufacturers?
3. Historically, the automotive industry in the United States has been identified by high barriers to entry. How was Tesla able to enter the automotive mass-market industry?
4. What type of innovation strategy is Tesla pursuing? Tie your explanation to Elon Musks Master Plan, Part 1.
5. In which stage of the industry life cycle is the electric vehicle industry? What core competencies are the most important at this stage of the industry life cycle? What are the strategic implications for the future development of this industry?
6. Apply the Crossing-the-Chasm framework to explain some of the challenges Tesla is facing and provide some recommendations on how to overcome them.
7. Evaluate Elon Musks Master Plan, Part 2ii and assess if Tesla can gain and sustain a competitive advantage.
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