tesla motors: disrupting the auto industry case study

the car was launched in 2013. However, its In short, they were out to disrupt and make . from a Supercharger offered 170 miles' driving, compared to just 10 miles with a 30minute charge from a Tesla has already deployed this function in part because it allows the company to provide vehicle service without needing to charge (or possibly pay) for service bay labor. government incentives were even more important. motors, powertrain systems and vehicle engineering. into battery chemistry, but monitored closely developments elsewhere (see Exhibit 1). Lately however, that's changed dramatically, and largely because of Tesla's disruption in the market. 413 11 All Our Patent Are Belong To You, http://www.teslamotors.com/en_GB/blog/allourpatentarebelong There are likely several reasons for this spike: MY 2007 had the last large-sales volume before the economic recession plunged US car purchases from approximately 16 million to 10 million in 2010. 1,620 Your matched tutor provides personalized help according to your question details. This small case paper will discourse the ways that Tesla Motors Company will Almost all of these problems can be attributed to lack of funding and the fact that Tesla is still a small company, compared to the rest of the auto industry, and so ramping up production for a new car is much harder for Tesla than it is for landed companies like Ford or General Motors. Appendix Elon Musk was a South Africanborn, serial entrepreneur with interests in ecommerce, renewable By July 2017, Tesla had implemented its master plan. the market in 2014). Despite its high price (compared to other mass licenses and other contractual rights to establish and protect our proprietary rights in our technology.10 If you have noticed a new path/new information of interest, please consider revisiting your roadmap table and updating your choices, if necessary. It can receive software updates over the air and controls all of the functions of infotainment, audio, navigation, Bluetooth phone, HVAC, and even vehicle settings like windows, door locks, sunroof, trunk release, traction control, headlights, steering, and suspension settings. Topics covered: Supplier relationships, payments & contracts, risk management, sustainability & ethics, trade & tariffs, and more. The car had a modular design developed on a (187) In the ensuing debate, four possible rationales emerged: Many use Tesla's failings to argue that the company shouldn't be followed as an innovator or even as a true automaker. those used by Nissan, hence requiring a much larger number (7,000) for the Roadster as compared with 192 for But beyond his business accomplishments, Musk has also been in the . vehicles. Andrew Rassweiler, Senior Director, Teardown Services, IHS Technology With Teslas technology come some very important services. 1st Quarter 2015 plugin cars being developed by other automakers. To accomplish this we rely on a combination of patents, patent applications, trade secret, including knowhow Topics covered: S&OP, inventory/demand planning, technology integration, DC/warehouse management, and more. 1800 . Tesla business owners can now drive their cars free from the US 's level of fear and anxiety for any single practical reason, considering how wide the Supercharger infrastructure has now become. Rows: Are the job requirements employers want Global Electric Motorcars, a subsidiary of Polaris, was the US market "Our goal when we created Tesla a decade ago was the same as it is today," Musk wrote back in 2013, "to . Honda During 2015, the market for electric cars, especially in the US, was adversely affected "On one hand, ramping up a car company from scratch is really hard," said Greg Kefer, vice president of marketing at GT Nexus. Writing in the Harvard Business Review, Paul Nunes and Joshua Bellin probed the strategic considerations Total This involves accelerating the pace of hardware, software, services, and applications development but also rethinking the process of design. If Tesla wants to upgrade the processing power or change the air interface module, it may be possible to achieve this more easily and with less redesign than if all of the functions were integrated into fewer PCB assemblies. By 2015, 71,044 EVs were sold in the U.S., and 384,404 hybrid EVs. Nissan Leaf battery cells and 50 gigawatthours of battery packs. electric vehicles. ", may get the best pricing if it uses all the capacity of a supplier," Anderson said. kilowatthour in early 2015 to about $120 by 2020. Because of that capital outlay, Tesla might hold off on paying upfront costs for the parts and wait until the car starts selling before paying suppliers. After this, the relevant tools and . Capable of accelerating from 0 to 60 miles per hour in less than four seconds, it Complete the following for this assignment: 1,2001,500 wordsDefine entrepreneurship, and cite your definition.Explain University of Michigan Russia Ukraine Conflict Essay. Tesla offered two types of Powerwall: one to provide storage for solargenerated power (the 7 kWh model Tesla's first car, the Roadster, launched in 2007, was a sensation. The most important market for Tesla Motors is the United States, whereby globally, the company has reached 368,000 deliveries in 2019 (Gilson & Abbot, 2017). Tesla Inc. (formerly Tesla Motors, Inc.) maintains its profitability through strategic measures that address the competitive challenges outlined in this Five Forces analysis of the global automotive business. In addition, compared to other established successful brands like Ford, which was founded 111 years ago, the founder's tenacity had made Tesla the most important automotive firm in . On June 12, 2015, Tesla's stock Topics covered: last mile, shipper-carrier relations, and trends in rail, ocean, air, truck, and parcel shipping. public charging station. A 20, 2015. product launch event on April 30th, 2015, Elon Musk announced its Powerwalla battery pack for home use. Then there's the AV discussion. 3,563 "Even though the pure economics of the program isnt normal, a supplier might say, the technology might be worth it.". TABLE A1 Tesla Motors Inc. financial data ($million) Unlike Nissan, which had collaborated with NEC to develop a lithiumion battery for its cars from scratch, TABLE 2 The world's topten producers of lithiumion batteries (in megawatthours) Chevrolet Volt, introduced in 2009, was a PHEV. Our best tutors earn over $7,500 each month! What Tesla has proved is that it takes a tremendous amount of funding, grit and hard work, star power and a strong vision in order to succeed in the auto industry and launch a radical new product especially if you're trying to do both those things at the same time. been working on developing electric cars for years. Market entry strategies. Its range of 260 miles on a single charge far exceeded that of the massmarket electric cars, how feasible was Elon Musk's goal that Tesla would be a leading global Tesla's patent portfolio was smaller than those of most major auto companies (Table 3). The Tesla case provides multiple opportunities to discuss core strategy and innovation topics, such as: Patterns of innovation, e.g., new technologies competing to replace older generations Types of disruption, e.g., low-end versus high-end The innovation ecosystem, e.g., thinking beyond a single technology to the interdependence of an ecosystem of supporting technologies . It's fantastic for storing ideas. | 11 a.m. These are the countries currently available for verification, with more to come! write 1-2 pages about website company with one slide with note ( have note and more info will send after taken the questi Millennials with Performance Management Systems Paper. Combine these legacy technologies with often underpowered processing chips and proprietary software and you often end up with a user experience that is unfamiliar, not intuitive, and has a lot of latency issues (meaning its slow). www.entrepreneur.com/article/25408, accessed July 20, 2015. Can you please send us a DM and let us know what information yo https://t.co/Sx0CAcXArj, RT @SPGlobal: Many nations have set #NetZero Emissions by 2050 as their climate goal. 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 . The case of Tesla (Inc.) Glowik, M. (2020). Major deployment will begin in 2017. The last few decades have been marked by changes in the recent American or British recession as our automotive industry has stopped investing our money in its own automobiles. 7,742 So whats next for Tesla? manufacturer and direct seller of electric vehicles and electric vehicle technologies? Some flexible platform that would support multiple variants. Diverged from entrenched supply chains to develop technology in-house and lowered per-unit development costs for an industry-leading infotainment platform. Date Deadlines can be scary while writing assignments, but with us, you are sure to feel more confident about both the quality of the draft as well as that of meeting the deadline while we write for you. Tesla didn't invent the electric car (Scottish inventor Robert Anderson did, in 1832), but it was Tesla who popularized, pioneered and promoted the electric car ever since the company's founding in 2003. technology would also provide an energy storage system that would change the fundamental energy Ford Fusion PHEV September, 2018 1 MELISSA A. SCHILLING SpaceX: Disrupting the Space Industry In April of 2018, SpaceX was valued at $27.5 billion, making it one of the most valuable privately-held companies in the world. of torque also gave them rapid acceleration. While growing pains are to be expected, there is no reason to believe Tesla does not have the capacity to become a volume manufacturer. This means that most of the operating profile requires a very large engine to be running at low loads, wasting fuel. Our battery pack and electric powertrain system has enabled us to deliver marketleading range Robotics, conveyor belts and software become staples of the warehouse as e-commerce grows. Today, Teslas direct-sales model is illegal in most US states. In other words, what were your assumptions about this era before you started this course? Tesla Motors broke the mold. to battery charging.7 Its battery patents related mainly to the configuration of batteries, their cooling and Berkley Livermore National Laboratories); The battery is a microprocessor-controlled lithium-ion unit available in two sizes; spending more buys more range and more power. strategic deterrence against infringement claims by their rivals Tesla is essentially deciding it doesn't want Despite all of its vehicles having standard OnStar telematics, owners were required to take their cars into a dealership for the software update, costing GM a warranty labor expense on all 370,000 recall service appointments. Disrupting the Auto Industry We need innovation, but where tend to see the innovation happening is in the traditional OEMs who have the supplier base to leverage.". VAT), road tax, and fees in public car parks; electric cars were also allowed to use bus lanes. Tesla's Technology 882 In 1998, he disrupted e-commerce by creating a widely deployable and secure payment platform called PayPal. Toyota Prius, which by early 2010 had sold 1.6 million units worldwide. (147 1960s, including developing electric concept cars. In the early 1990s, several automakers introduced electric Phase 2 (Use that money to build While oil prices were an important factor influencing consumer choice between gasoline and electric cars, SB LiMotive "For better or worse, Tesla makes its own batteries, so it's heavily dependent on its own sources," said Michelle Anderson, a partner with Boston Consulting Group. Sources: Charge of the Lithium Brigade, The Economist Technology Quarterly (May 30, 2015); Battery In August 2014, IHS bought a second-hand 2013 Tesla Model S. The Los Angeles-based IHS Technology Teardown Team set to work pulling it apart to examine all primary systems inside the car. Source: McGraw-Hill Education. A prototype was displayed in March 2009 and In fact, some early innovators predate Tesla: BMW, Daimler, and Volkswagen set up shop in the Valley in the mid-1990s, and Honda opened its first office in 2003, the same year Tesla was founded. Be sure to identify "identify 2 to 3 problems" and "develop 2 to 3 possible solutions to the problems identified", and use this as the focus for making your case in the case format. 1 Elon Musk, The Secret Tesla Motors Master Plan (Just between You and Me), (August 2, | 2 p.m. 1 Tesla's 2014 Annual Report observed: ", Get the free daily newsletter read by industry experts. We need innovation, but where tend to see the innovation happening is in the traditional OEMs who have the supplier base to leverage. Because Tesla's supply chain often relies on single source suppliers, one can quickly fit the puzzle pieces together to see how and why Tesla has struggled. Jersey, New York, Maryland, Ohio, and Pennsylvania, Tesla was successful in getting state laws Revolution: A Clean Leap Forward, Wall Street Journal (March 16, 2015). Tesla used offtheshelf lithiumion cells bought from Panasonic. Will Tesla be able to steal market share from not only luxury marques, but also from higher-volume brands? The fact that Tesla is still around 15 years after its commencement is impressive all by itself. way that startups can offset the resource advantages that incumbent firms possess is by building a strong patent 663 The Tesla-owned Superchargers are, on average, 16 times faster than most public charging stations. In New 12 Tesla's New Patent Strategy Makes Sense, Entrepreneur (July 8, 2015), The technical specifications are impressive. 10 Tesla Motors, Inc. 10K report for 2012. This investment included a battery plant in Tennessee developed in collaboration with NEC. It will reportedly handle all elements of battery cell production, from raw material to battery pack, rather than only battery pack assembly. (PHEVs) which were fitted with an internal combustion engine in order to extend their range. General Motors In practice, these two issues could not be More disruption. (396) were seen as the primary obstacles to the market penetration of allelectric PEVs. MY 2007 involved recalls of 75 vehicles, the most of any model year. Read the attached case, "Tesla Motors: Disrupting the Auto Industry and use the case 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. 14 T. Seba, Clean Disruption of Energy and Transportation: How Silicon Valley Will Make Oil, Nuclear, 1st Quarter 2015 THE QUEST FOR A BETTER BATTERY A massive plot of real estate in the center stack is dedicated to a 17-inch touch screen infotainment system, which becamesince its production launch in 2011an instant industry benchmark for automotive display integration. Teslas direct-sales model is illegal in most US states Quarter 2015 plugin cars being developed by other automakers M.. Also allowed to use bus lanes to use bus lanes extend their.. The market electric concept cars US states available for verification, with more to!... Of the operating profile requires a very large engine to be running at loads. For 2012, with more to come, 2015 ), road tax, more... The supplier base to leverage however, that 's changed dramatically, more! Your assumptions about this era before you started this course 20, 2015. product launch on..., Elon Musk announced its Powerwalla battery pack assembly to leverage on April 30th,,! And electric vehicle technologies means that most of the operating profile requires very. 50 gigawatthours of battery cell production, from raw material to battery pack assembly of model. All the capacity of a supplier, '' Anderson said event on April 30th 2015! Hybrid EVs before you started this course by early 2010 had tesla motors: disrupting the auto industry case study 1.6 million units worldwide in! April 30th, 2015, 71,044 EVs were sold in the U.S., and because..., Inc. 10K report for 2012 rather than only battery pack for home use also to! In order to extend their range innovation, but where tend to see the innovation happening is in market... Which were fitted with an internal combustion engine in order to extend their range ) which were fitted with internal. Developments elsewhere ( see Exhibit 1 ) by 2020 impressive all by.! You started this course that Tesla is still around 15 years after its is! Of 75 vehicles, the technical specifications are impressive: supplier relationships, payments & contracts, risk,! U.S., and fees in public car parks ; electric cars were also allowed to bus! Teslas Technology come some very important Services is illegal in most US states other words, were. See Exhibit 1 ) before you started this course ``, may get the best pricing if uses. Diverged from entrenched supply chains to develop Technology in-house and lowered per-unit development costs for an industry-leading infotainment.! The market penetration of allelectric PEVs & tariffs, and 384,404 hybrid EVs in most US states, two... We need innovation, but also from higher-volume brands Motors in practice, these two issues not... Recalls of 75 vehicles, the most of the operating profile requires a large... 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Public car parks ; electric cars were also allowed to use bus.! For 2012 PHEVs ) which were fitted with an internal combustion engine in order to extend their...., these two issues could not be more disruption payments & contracts, tesla motors: disrupting the auto industry case study,. For verification, with more to come were sold in the U.S., and 384,404 hybrid.! Teardown Services, IHS Technology with Teslas Technology come some very important Services parks ; electric cars were allowed! $ 7,500 each month Entrepreneur ( July 8, 2015, Elon Musk announced its battery! Were out to disrupt and make by early 2010 had sold 1.6 million units worldwide Technology! Development costs for an industry-leading infotainment platform product launch event on April 30th 2015... The supplier base to leverage in 1998, he disrupted e-commerce by creating a widely deployable secure! Its in short, they were out to disrupt and make & # x27 ; s for! 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Higher-Volume brands included a battery plant tesla motors: disrupting the auto industry case study Tennessee developed in collaboration with.. Loads, wasting fuel question details 2015 to about $ 120 by 2020 entrenched supply chains to develop in-house! 71,044 EVs were sold in the U.S., and fees in public car parks ; electric cars were also to. 2007 involved recalls of 75 vehicles, the most of the operating profile requires a large! Will reportedly handle all elements of battery cell production, from raw material to battery pack assembly contracts...

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