Tesla, INC.

By: Frank T. Rothaermel

1. Assess the attractiveness of the electric vehicle (EV) industry as of 2023. Specifically speaking, identify all five forces and describe the industry structure by using the underpinnings of five forces. For the power of buyers, be sure to include the projection of market growth over the next three years. For competitive rivalry, be sure to include global competitors.

1. What business model is Tesla pursuing? How is Tesla's business model different from traditional car manufacturers? Historically, the automotive industry in the U.S. has been identified by high barriers to entry. Discuss how Tesla was able to enter the automotive mass-market industry where legacy auto manufacturers have long been dominant and why the manufacturers were not able to prevent Teslas entrance.

1. Assess the current stage of the EV industry in the Crossing-the-Chasm framework. (Refer to the chapter - Strategic Entrepreneurship on Moodle). Is it at the stage of early adopters, chasm, or early majority? Discuss your choice with some market evidence. Explain the chasm Tesla is facing or will face and provide some strategic recommendations on how to overcome it.

1. Choose the two most powerful forces that managers need to focus on over the next three years and discuss why. What core competencies are the most important at this stage of the industry life cycle? Be sure to use a resource-based view. Discuss what Tesla should do in the next three years in terms of 1) business strategy and 2) corporate strategy regarding electrification.

EXHIBIT 13 Electric Vehicle Sales in China (by units), 2011-2019 EXHIBIT 14 Electric Vehicle Sales Growth Rate in China (percentage change from the previous year), 2013-2019 Source: Depiction of publicly available data. Source: Depiction of publicly available data. EXHIBIT 11 Vehicle Sales in the United States, 1978-2019 (in 1,000 units per year) EXHIBIT 12 Average Annual Gasoline Price in the United States (dollars/gallon), 2000-2020* Source: Depiction of publicly available data. " dotted trendline. Source: Depiction of publicly available data. * includes Electric Vehicles (EVs) and Plug-in Hybrid Electric Vehicles (PHEV) Source: Depiction of publicly available data. EXHIBIT 8 Tesla Product Improvements over Time: Comparing 2012 Model S with 2021 Cybertruck EXHIBIT 7 Tesla Cybertruck Models (2021) Source: Depiction of publicly available data. Source: Depiction of publicly available data. EXHIBIT 6 Tesla Total Vehicle Deliveries by Model, 2016-2019 [ Source: Depiction of publicly available data. EXHIBIT 3 Teslas (Normalized) Stock Performance since Initial Public Offering vs. Dow Jones Industrial EXHIBIT 4 Tesla's Market Capitalization and Key Events, June 2019 - February 2020 Average (DJIA), June 29, 2010-February 14, 2020 Source: Depiction of publicly available data. Source: Depiction of publicly available data. EXHIBIT 1 Tesla Total Vehicle Deliveries, 2012-2019* EXHIBIT 2 Tesla Financial Data, 2015-2019 (\$ millions, except EPS data) " dotted trendline. Source: Depiction of publicly available data. Source: Tabulation of publicly available data