Tesla's Uncertain Fate as EV Race Accelerates

By September 2021, Tesla had a staggering market cap of $755 billion. As the leader of the automobile industry, Tesla’s worth surpassed that of the six largest runner-ups combined, including Toyota, Volkswagen, BYD, Daimler, Great Wall Motors, and General Motors. As stock prices percolated in an upward frenzy, critics questioned whether Tesla was overvalued. While Tesla undoubtedly created value when it wedged open the Electric Vehicle space, did it have the competitive advantages necessary to capture it in the long-term? This case makes explicit Tesla’s competitive advantages and manufacturing track-record, while assessing the context of market and competitive landscape transformation.