Abstract

The case discusses the efforts of Tesla Motors Inc. (Tesla) in developing and marketing the Tesla Roadster, an electric car powered by Lithium-ion batteries. It describes how the company was set up by Martin Eberhard and Elon Musk, their subsequent efforts to secure funding for the project, and the design and development process for the car. The case also discusses some of the technical challenges and management problems which complicated and delayed the development and production of the car. It also briefly touches on the relative advantages of electric cars, and describes some of the challenges faced by Tesla, and the future outlook for electric cars.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the technical challenges faced by a company developing a revolutionary, new product. Identify the need for proper management control during new product development. Appreciate the need for innovation in developing and growing new markets and in

Keywords

Electric Vehicles/EV, Tesla Roadster, Automobile industry, New product development, Innovation, Effective management control , Model S, Electric car