Tesla Roadster: The Car of the Future?

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Case Details:

Case Code : OPER076
Case Length : 18 Pages
Period : 2003-2009
Organization : Tesla Motors Inc.
Pub Date : 2009
Teaching Note :Not Available
Countries : USA
Industry : Automobile

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Getting Started

The first EVs were developed in the 1800s (See Exhibit I for the timeline of EVs). But due to the relative superiority of the internal combustion engine (ICE) which was cheaper and faster, little attention was subsequently paid to developing the EV technology...

Bringing the Investors Aboard

Eberhard sought venture capital funding to develop and manufacture the electric car. Although he met with several venture capital firms and tried hard to convince them about the desirability and the comparative advantages of the electric car vis-à-vis the gas-powered car, he failed to get any backers...

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The Development Process

In 2004, after obtaining funding for the venture, Eberhard began recruiting people to design and develop the car, codenamed 'Dark Star'...

Unveiling the Tesla Roadster

In July 2006, the Tesla Roadster (Roadster) was unveiled to the public at Barker Hangar in Santa Monica, California (See Exhibit II for a picture of the Tesla Roadster). The event was attended by several celebrities, including Arnold Schwarzenegger, the Governor of California...

Problems in Bringing the Roadster to Market

However, bringing the car to the market turned out to be a difficult task for Tesla, which was faced with not only technical challenges, but also management turmoil. Right from the initial stages, the company missed many development and production deadlines...

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