Tesla Motors

Steen, E. V. (2015). Tesla Motors. In HBS No. 9-714-413. Boston, MA: Harvard Business School Publishing.

Summary

This case examines the initial rise of Tesla Motors and how they were able to successfully launch a line of high-end electric vehicles. It first explores the history and landscape of electric vehicles to give an idea of the competition. It then goes on to discuss the history of Tesla Motors and their strategy of starting with a sports car to make money to develop a more affordable car, to then make money to develop an even more affordable car. Tesla did almost all their own design work, development, and manufacturing in house. Additionally, they marketed their cars on luxury and performance over the environmental benefits. This proved to be a good strategy to attract buyers.

Experience

As an owner of a Tesla, I obviously have firsthand experience with their product. I can say that I have watched them grow and reshape the landscape of the auto industry over the past several years. No longer a niche product, electric cars are clearly part of the lexicon and Tesla has pushed all major manufactures to either engage in or accelerate their plans to develop their own line of electric vehicles. I feel like this is validation of their strategy to mass market electric cars, and is a great example of a vision with a clear objective driving change.

KEYWORDS: Tesla, electric cars, marketing, strategy