EE204: Business Management for
Electrical Engineers and Computer Scientists

Innovation Ecosystem

Read

1. Match Your Innovation Strategy to Your Innovation Ecosystem (HBS course materials)
2. Breakeven Analysis
3. Tesla (in 2013): Will Sparks Fly in the Automobile Industry?
4. Recent news about Tesla:
   1. http://www.autonews.com/article/20140301/RETAIL/140229855/teslas-state-by-state-battle-with-dealers
   2. http://www.forbes.com/sites/aarontilley/2015/01/22/bmw-volkswagen-100-fast-charging-stations/
   3. http://www.latimes.com/business/autos/la-fi-hy-tesla-nevada-gigafactory-20140903-story.html
   4. http://qz.com/326265/teslas-electric-dreams-in-china-are-starting-to-flicker/

Case Summary

Elon Musk's reputation as a serial entrepreneur has people wondering what will happen with his current focus, Tesla Motors. In the heavily-fragmented, alternative fuel vehicle industry, Tesla has established itself as the leader in all-electric car technology. Despite the Tesla Model S being named the Motor Trend 2013 Car of the Year and a soaring stock price, Tesla faces many challenges going forward.

Discussion Questions

1. What is the state of Tesla's ecosystem in 2013?
2. How have the strengths of Tesla's competitors affected its success in the market?
3. What role has government played in the surrounding ecosystem?
4. What did Tesla hope to achieve through its strategic partnerships?
5. How has Tesla managed expectations regarding its vehicles? What would you suggest they do differently?