Publications
Publications
- May 2023
- HBS Case Collection
Tesla’s Uncertain Fate as EV Race Accelerates
By: David Collis
Abstract
Teaching Note for HBS Case No. 722-368. The case describes the strategic position of Tesla in 2021. While the firm has been successful in driving adoption of electric vehicles (EVs) globally and has a huge market share in the segment, it faces an impending tsunami of competition. Can Tesla justify a market valuation that is more than that of the ten largest auto manufacturers combined, or is it destined for a severe decline even as EVs pass a tipping point in their replacement of internal combustion vehicles?
The case briefly describes the conditions that allowed Tesla to exploit the potential of the EV business, the novel strategy that Tesla adopted to enter and grow within the EV market, and the state of competition it faces in 2021. Exhibits provide the data to support arguments outlining the logic for the past success of Tesla, as well as the threat to its continuing success.
The case briefly describes the conditions that allowed Tesla to exploit the potential of the EV business, the novel strategy that Tesla adopted to enter and grow within the EV market, and the state of competition it faces in 2021. Exhibits provide the data to support arguments outlining the logic for the past success of Tesla, as well as the threat to its continuing success.
Keywords
Strategy; Corporate Strategy; Competition; Business Growth and Maturation; Success; Adoption; Auto Industry
Citation
Collis, David. "Tesla’s Uncertain Fate as EV Race Accelerates." Harvard Business School Teaching Note 723-447, May 2023.