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  • September 2021 (Revised March 2024)
  • Case
  • HBS Case Collection

Tesla in 2023: 'Electrified' Competition

By: Eric Van den Steen, Ramon Casadesus-Masanell and Karen Elterman
  • Format:Print
  • | Language:English
  • | Pages:59
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Abstract

Over its 17 years in existence, Tesla had redefined people’s view of electric cars, and in 2020, the company saw its stock rise by more than 700% to became the most valuable carmaker in the world. In December 2020, Tesla celebrated its fifth consecutive quarter of profit and joined the S&P 500. However, in 2021 competition in the electric vehicle space was rapidly heating up. In January, General Motors announced that it would phase out gas-powered vehicles to sell only vehicles with zero emissions by 2035. A week later, Ford announced that it would invest $22 billion on electric vehicles (including hybrids) and $7 billion on autonomous vehicles by 2025. Meanwhile, BMW was developing electrified versions of all its models, and the Volkswagen Group had announced a new strategic plan with the specific aim of catching up with Tesla. Tesla’s run had defied the skeptics, but with competition revving up, would Tesla be able to dominate the market in the years to come?

Keywords

Barrier To Entry; Competitive Advantage; Innovation; Tesla; Automotive Industry; Sustainable Competitive Advantage; Values; Vision; Learning By Doing; Economies Of Scale; Electric Vehicle; Scenario Planning; Batteries; Competitive Strategy; Product Positioning; Profit; Competition; Industry Growth; Auto Industry

Citation

Van den Steen, Eric, Ramon Casadesus-Masanell, and Karen Elterman. "Tesla in 2023: 'Electrified' Competition." Harvard Business School Case 722-375, September 2021. (Revised March 2024.)
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About The Authors

Eric J. Van den Steen

Strategy
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Ramon Casadesus-Masanell

Strategy
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Related Work

    • March 2024
    • Faculty Research

    Tesla in 2023: 'Electrified' Competition

    By: Ramon Casadesus-Masanell and Jordan Mitchell
    • September 2021 (Revised March 2024)
    • Faculty Research

    Tesla in 2023: 'Electrified' Competition

    By: Eric Van den Steen, Ramon Casadesus-Masanell and Karen Elterman
Related Work
  • Tesla in 2023: 'Electrified' Competition By: Ramon Casadesus-Masanell and Jordan Mitchell
  • Tesla in 2023: 'Electrified' Competition By: Eric Van den Steen, Ramon Casadesus-Masanell and Karen Elterman
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