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  • November 2016 (Revised September 2018)
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Elon Musk's Big Bets

By: David B. Yoffie, Eric Baldwin and Brandon Kaufmann
  • Format:Print
  • | Language:English
  • | Pages:28
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Abstract

Between late 2014 and late 2016, Tesla CEO Elon Musk undertook several major, and risky, initiatives that would dramatically expand the scale and scope of Tesla’s business. In late 2014, Tesla began construction on a $5 billion “gigafactory” that would manufacture lithium-ion batteries used in Tesla’s electric vehicles on an unprecedented scale. In early 2015, Tesla announced a new product line of battery packs designed for large-scale energy storage for residential, commercial, and utility-scale installations. In 2016, the company acquired SolarCity, a leading solar energy firm, creating what Musk called “a vertically integrated energy company.” These moves, representing billions of investment and extension into new industries, came at a time when Tesla was still losing money and struggling to scale up production of its electric vehicle lines to meet ambitious delivery targets. Meanwhile, Musk was also CEO of SpaceX, which was, while growing its business of launching satellites and cargo into space for commercial and governmental clients, preparing to take astronauts into space, pioneering the use of reusable rockets and announcing plans to colonize Mars. Would Musk be able to realize his ambitious goals or was he taking too many risks with his investors’ money?

Keywords

Electric Vehicles; Batteries; Solar Power; Strategy; Execution; Technology; Space Flight; Tesla; SolarCity; SpaceX; Elon Musk; Information Technology; Risk and Uncertainty; Expansion; Renewable Energy; Investment; Manufacturing Industry; Green Technology Industry; Auto Industry; Aerospace Industry; Battery Industry

Citation

Yoffie, David B., Eric Baldwin, and Brandon Kaufmann. "Elon Musk's Big Bets." Harvard Business School Case 717-431, November 2016. (Revised September 2018.)
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About The Author

David B. Yoffie

Strategy
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Related Work

    • May 2017
    • Faculty Research

    Elon Musk's Big Bets

    By: David B. Yoffie and Eric Baldwin
    • November 2016 (Revised September 2018)
    • Faculty Research

    Elon Musk's Big Bets

    By: David B. Yoffie, Eric Baldwin and Brandon Kaufmann
Related Work
  • Elon Musk's Big Bets By: David B. Yoffie and Eric Baldwin
  • Elon Musk's Big Bets By: David B. Yoffie, Eric Baldwin and Brandon Kaufmann
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