Integrative Case

Tesla Inc.
By Team A
 Tesla Inc.
- Co-founded by Elon Musk, J. B. Straubel, and Ian Wright.
- Is an US automobile manufacturer, energy storage producer, and solar panel
manufacturer. Specializes in electric cars, lithium-ion batteries, and
residential solar panels
- Has sales of over $7 billion, assets of some $25 billion, and more than
30,000 employees.
 Tesla Inc.
2008 2012 2015-2017

Model X in 2015, a crossover SUV, and Model 3

Tesla Roadster The 2nd vehicle, in 2017.
produced the an electric luxury
world’s first sedan - Model S, Model 3 was unveiled in 2016, but was
electric sports hit the market. introduced into the market in the latter part of
2017 at a base price of $35,000 before any
car.
government incentives.
 Tesla Inc.

PROBLEM STATEMENT
Although being one of the most “green” country, sales of Tesla EVs in Denmark
EFFECT went down by more than 60 percent after the Danish government phased out
taxpayer subsidies to buy electric cars.

SYMPTO
M EV tend to rely on government incentives rather than internal attractiveness to sell

PROBLE
Without price incentives, EV is less attractive to customer than traditional car
M
 Tesla Inc.
ROOT CAUSE
ANALYSIS
PROBLE
M EV is not as attractive to customer compared with traditional car

(1) (2) (3)

CAUSE Because EV’s price are less Because using EV is Because EV are less
S attractive than traditional car reliable than traditional
less convenient
cars

SUB-CAUSES
Perceived The choice of more Lack of charging Time- Low range between
expensiveness affordable models is infrastructure consuming to charges
limited charge battery
 Tesla Inc.
ROOT CAUSE ANALYSIS & POTENTIAL
SOLUTIONS
CAUSE (1) Because EV’s price are less attractive than traditional car

SUB-CAUSES Perceived expensiveness The choice of more affordable models is limited

Tipping point price: $35,000 ~ Price of Model 3 Tesla. However:

(61%) believe that EVs are aimed at the high-end “the choice of more affordable models is limited and
market EVs remain more expensive – at least in terms of
(63%) of consumers view EVs as beyond their purchase price – than their ICE equivalents.”
budget.

SOLUTION
Educate consumers about the price of EVs
 Tesla Inc.
ROOT CAUSE ANALYSIS & POTENTIAL
SOLUTIONS
CAUSE (2) Because using EV is less convenient

SUB-CAUSES Lack of charging infrastructure Time-consuming to charge battery

64% of consumers consider buying a fully electric car Charge time is the second most important critical
if they were confident suitable charging infrastructure challenge for consumers.
existed
57% of OEMs told us a 30-40 minute charge time
In China, 82% have access to a public charging point,
but that drops to 40% in the US and 39% in Norway
is already available.

65% of urban consumers have access to a charging

point within five miles of their home, compared to just
26% living outside cities.

SOLUTION
Increase number of charging points
 Tesla Inc.
ROOT CAUSE ANALYSIS & POTENTIAL
SOLUTIONS
CAUSE (3) Because EV are less reliable than traditional cars

SUB-CAUSES Low range between charges

SOLUTION
Research & Development to improve battery technology
 Tesla Inc.

SOLUTION
EVALUATION

SOLUTION Educate consumers Increase number of charging Research & Development to

about the price of EVs points improve battery technology

EVALUATION - Can be less effective - Need a huge investment to - There are trade-offs
when the early adopters make charging station between charging time and
are high-earnings accessible full range between charges
- Need the infrastructure to
sell the cars but can’t build the
infrastructure until
sell the cars.
- Need government support
 Tesla Inc.
RECOMMENDED
SOLUTIONS
SOLUTION Educate consumers about the price of EVs Increase number of charging points

EVALUATION - Can be less effective when the early adopters are - Need a huge investment to make charging station accessible
high-earnings - Need the infrastructure to sell the cars but can’t build the
infrastructure until sell the cars.
- Need government support

Build JIT supply system to Using regional targeting,

RECOMMEND Target the middle-income
ED SOLUTIONS collect customer database and and build infrastructure to
people & spreading PR,
supply charging infrastructure supply for focused region
WOM
accordingly then expand
 Reference lists

1. https://www.castrol.com/content/dam/castrol/master-site/en/global/home/technology-and-innovati
on/electric-vehicle-adoption/accelerating_the_evolution_study.pdf

2. https://cleantechnica.com/2019/02/16/standardization-of-ev-charging-in-the-eu/
3. https://www.researchgate.net/publication/333394886_Electric_vehicle_range_and_bat
tery_lifetime_a_trade-off