Skip to main content
Top

2017 | OriginalPaper | Chapter

15. Driving Against the Tide: The Case of Tesla Motors

Authors : Kai-Ingo Voigt, Oana Buliga, Kathrin Michl

Published in: Business Model Pioneers

Publisher: Springer International Publishing

Activate our intelligent search to find suitable subject content or patents.

search-config
loading …

Abstract

The electric vehicle manufacturer Tesla Motors Inc. (Tesla) was founded in 2003, and substantially increased public attention towards electric mobility. Until the 1990s, automakers saw no pressing need to develop electric vehicle technology, largely due to low oil prices and facile environmental policies. By the turn of the millennium, some car manufacturers, for instance GM, made initial attempts to introduce environmentally friendly vehicles, such as the Chevrolet S-10 Electric. Such projects mostly failed, due to a lack of market driving factors. The most significant among them was the lack of performant batteries and infrastructural units like recharging stations, paired with a public policy not yet fully committed to supporting the development of electric vehicles. Some projects however succeeded: hybrid cars like the Toyota Prius and the Honda Insight found an incipient market of early adopters. Yet in a market, in which incumbents were mostly doubtful about the market acceptance of electric vehicles, new entrants with a sole focus on such models faced a hard time. Main entry barriers were the extremely high investments in production plants, immense technological know-how, and brand recognition. In spite of such hurdles, in 2008, when Tesla began serial production of its first model, the Roadster, it became the first company worldwide to manufacture serial electric sports cars. Tesla’s high-performance battery electric vehicle had an impressive travel range of up to 400 kilometers, which was double the range of other BEVs in the mid-2000s. Its performance was at least comparable to, if not exceeding, that of ICE vehicles. The time seemed right for setting in motion a worldwide transition towards electric mobility. This vision helped Tesla’s founders to persevere stubbornly in introducing a new product and a new business model in an industry dominated by giants.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

Literature
go back to reference Badkar, M. (2013). Ambitious auto venture in a century nearly collapsed and then came back from the dead. In M. Marcovici (Ed.), The Tesla Motor’s way (pp. 64–87). Norderstedt: Books on Demand. Badkar, M. (2013). Ambitious auto venture in a century nearly collapsed and then came back from the dead. In M. Marcovici (Ed.), The Tesla Motor’s way (pp. 64–87). Norderstedt: Books on Demand.
go back to reference Chan, C. C. (2002). The state of the art of electric and hybrid vehicles. Proceedings of the IEEE, 90(2), 247–275.CrossRef Chan, C. C. (2002). The state of the art of electric and hybrid vehicles. Proceedings of the IEEE, 90(2), 247–275.CrossRef
go back to reference Holmberg, S. R. (2011). Emerging green-technology entrepreneurs: Entrepreneurial pathways to growth in the hybrid and plug-in hybrid/electric vehicle space. ICSB World Conference Paper. Holmberg, S. R. (2011). Emerging green-technology entrepreneurs: Entrepreneurial pathways to growth in the hybrid and plug-in hybrid/electric vehicle space. ICSB World Conference Paper.
go back to reference Mangram, M. E. (2012). The globalization of Tesla Motors: A strategic marketing plan analysis. Journal of Strategic Marketing, 20(4), 289–312.CrossRef Mangram, M. E. (2012). The globalization of Tesla Motors: A strategic marketing plan analysis. Journal of Strategic Marketing, 20(4), 289–312.CrossRef
go back to reference Osterwalder, A., & Pigneur, Y. (2010). Business model generation—A handbook of visionaries, game changers and challengers. Hoboken, NJ: Wiley. Osterwalder, A., & Pigneur, Y. (2010). Business model generation—A handbook of visionaries, game changers and challengers. Hoboken, NJ: Wiley.
go back to reference Poczter, S. L., & Jankovic, L. M. (2014). General Motors: The electric revolution. Journal of Business Case Studies, 10(2), 185–190.CrossRef Poczter, S. L., & Jankovic, L. M. (2014). General Motors: The electric revolution. Journal of Business Case Studies, 10(2), 185–190.CrossRef
go back to reference Rappold, T. (2015). Silicon Valley Investing: Investieren in die Superstars von heute, morgen und übermorgen. München: FinanzBuch. Rappold, T. (2015). Silicon Valley Investing: Investieren in die Superstars von heute, morgen und übermorgen. München: FinanzBuch.
go back to reference Richardson, E. (2011). Tesla goes mainstream. Automotive Industries, 190(4), 30–32. Richardson, E. (2011). Tesla goes mainstream. Automotive Industries, 190(4), 30–32.
go back to reference Schilling, M. A. (2014). Case 14 Tesla Motors. In C. W. L. Hill, G. R. Jones, & M. A. Schilling (Eds.), Strategic management: An integrated approach (11th ed., pp. C-201–C-209). Stamford, CT: Cengage Learning. Schilling, M. A. (2014). Case 14 Tesla Motors. In C. W. L. Hill, G. R. Jones, & M. A. Schilling (Eds.), Strategic management: An integrated approach (11th ed., pp. C-201–C-209). Stamford, CT: Cengage Learning.
go back to reference Schreiber, B. A. (2008). Eberhard, Martin and Tarpenning, Marc. In K. J. Sparks (Ed.), Britannica book of the year 2008 (pp. 78–79). Chicago, IL: Encyclopaedia Britannica. Schreiber, B. A. (2008). Eberhard, Martin and Tarpenning, Marc. In K. J. Sparks (Ed.), Britannica book of the year 2008 (pp. 78–79). Chicago, IL: Encyclopaedia Britannica.
go back to reference Van den Steen, E. (2014, January). Tesla Motors. Harvard Business School Case, 9-714-413. Van den Steen, E. (2014, January). Tesla Motors. Harvard Business School Case, 9-714-413.
go back to reference Zollenkop, M. (2014). Management des Geschäftsmodells-Portfolios—Konzept, Fallbeispiele, Erfolgsfaktoren. In D. R. A. Schallmo (Ed.), Kompendium Geschäftsmodell-Innovation: Grundlagen, aktuelle Ansätze und Fallbeispiele zur erfolgreichen Geschäftsmodell-Innovation. Wiesbaden: Springer-Gabler. Zollenkop, M. (2014). Management des Geschäftsmodells-Portfolios—Konzept, Fallbeispiele, Erfolgsfaktoren. In D. R. A. Schallmo (Ed.), Kompendium Geschäftsmodell-Innovation: Grundlagen, aktuelle Ansätze und Fallbeispiele zur erfolgreichen Geschäftsmodell-Innovation. Wiesbaden: Springer-Gabler.
Metadata
Title
Driving Against the Tide: The Case of Tesla Motors
Authors
Kai-Ingo Voigt
Oana Buliga
Kathrin Michl
Copyright Year
2017
DOI
https://doi.org/10.1007/978-3-319-38845-8_15

Premium Partner