This Case is about ENTREPRENEURSHIP, INNOVATION, MARKETING, SUSTAINABILITY
PUBLICATION DATE: September 01, 2015 PRODUCT #: CMR602-HCB-ENG
The automobile industry’s high costs of entrance in market, economies of scale, and network effects from service, fueling, and distribution lead many to reason that new entrants have no options. Tesla Motors has succeeded in resolving many obstacles to initiate electric cars. Telsa began with partnership with few products however subsequently Tesla is working to increase its size and to innovate and introduce new products.
Tesla now makes a top-selling luxury car and has a market capitalization twice that Fiat Chrysler and one half that of Ford or General Motors. Tesla has revealed that a startup can enter and can give tough challenge to status quo in one of the very established businesses.