Innovation at Tesla Motors



Case Code : CLBS150
Period : 2014-2015
Publication date : 2015
Teaching Note :Available
Subject :Business Strategy
Case Length : 07 Pages
Countries : India
Industry : Automobile Industry
Organization : Tesla Motors


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Abstract: ICMR India ICMR India ICMR India ICMR India RSS Feed

Tesla disrupted the global automotive industry through its innovations, one of the core values of the company. It surpassed the competitors in the EV segment through the incorporation of standardized production practices followed by world class technology. Its innovative strategy in design, development process, and marketing made it a leader with a difference in the automotive industry. Among the unique product features, its product innovation strategy focussed on the power system while its product development process centered on maximization of speed. Critics pointed out that the high cost and limited range of EVs seemed to be the major challenges for Tesla in a diversified competitive market. Besides, cost of battery and limited Superchargers were expected to pose problems for Tesla in expanding its business.


Understand Tesla’s mission of delivering sustainable transport solutions through innovative technology
Understand the innovative strategies undertaken by the company to excel in automotive industry
Analyze the competitive advantage of Tesla in manufacturing EVs.
Analyze the challenges faced by the company during the initial period of business and the solutions made so far.


Tesla Motors (Tesla), an American automotive company, was ranked #1 on Forbes’ fifth annual list of the world’s most innovative companies 2015 ahead of for the first time in five years. Tesla, whose prime focus was on energy innovation, was a technology and design company which had forayed into the automotive manufacturing business. It took on the traditional automotive industry with its innovations, competing to develop the best world class technology in electrical vehicles (EVs). It disrupted the global automotive industry as a distinct player by focussing on innovation, Research & Development (R&D), and the customer. Its innovations in design, the development process, product differentiation, and marketing strategy revolutionized the global automotive industry...

Key words:
Tesla Motors,Innovation,Global automotive industry,Product differentiation,Tesla EV models,Product development, Electrical Vehicles,Product distribution" />

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