Description\n \n\n\n\n\n\n\n\n Just follow the requirements\n \n\n\n\nالمملكة العربية السعودية\nوزارة التعليم\nالجامعة السعودية اإللكترونية\nKingdom of Saudi Arabia\nMinistry of Education\nSaudi Electronic University\nCollege of Administrative and Financial Sciences\nAssignment 2\nStrategic Management (MGT 401)\nDue Date: 12/11/2022 @ 23:59\nGeneral Instructions – Please Read Them Carefully\n•\n•\n•\n•\n•\n•\n•\n•\nThe Assignment must be submitted on Blackboard (WORD format only) via allocated\nfolder.\nAssignments submitted through email will not be accepted.\nStudents are advised to make their work clear and well presented, marks may be reduced\nfor poor presentation. This includes filling your information on the cover page.\nStudents must mention question number clearly in their answer.\nLate submission will NOT be accepted.\nAvoid plagiarism, the work should be in your own words, copying from students or other\nresources without proper referencing will result in ZERO marks. No exceptions.\nAll answered must be typed using Times New Roman (size 12, double-spaced) font. No\npictures containing text will be accepted and will be considered plagiarism).\nSubmissions without this cover page will NOT be accepted.\nLearning Outcomes:\n▪\nDistinguish between different types and levels of strategy and strategy implementation environment of\nhypothetical and real-world organizations. (CLO3)\nGain insights into the strategy-making processes of different types of organizations (CLO4)\nUnderstand the contribution of various functional areas e.g. production, marketing, purchasing, and supply\nmanagement to the overall well-being of the organization. (CLO5)\nUnderstand issues related to strategic competitive advantage in diversified organizations (CLO6)\n▪\n▪\n▪\nThis assignment includes 2 sections:\nI.\nCase study\nAssignment Question(s):\nRead carefully the mini case No 18 from your textbook (entitled ‘Tesla Motors Inc.) and briefly answer\nthe following questions: (1 mark for each question)\n1.\n2.\n3.\n4.\n5.\n6.\n7.\nWhat is the competitive strategy used by Tesla Motors company?\nUse the five forces of the M. Porter matrix to describe the industry that “Tesla Motors” belongs to.\nDescribe the different functional strategies of the Tesla Motors company.\nDescribe the relationship of Tesla Motors with its primary stakeholders.\nDescribe the market position of Tesla Motors.\nDescribe the core competency of Tesla Motors.\nDescribe any strategic alliance (acquisition, outsourcing, joint venture, ….) used by Tesla Motors?\nWas it successful? justify.\n8. What are the main challenges that Tesla Motors faced?\n9. Assess the competitive advantage of Tesla Motors in its market.\n10. Recommend solutions for Tesla Motors to improve its competitive advantage.\nII.\nMini-project\nFrom real national/international market, choose an example of acquisition and answer the following\nquestions: (1 mark each question)\n1. Briefly introduce your chosen firms, and partners of the acquisition (industry, nationality, size,\nmarket position…). Max 100 words\n2. Explain the different reasons for this acquisition.\n3. What is the method used by the acquiring firm to manage its culture after acquisition? underline\nthe pros and cons of this method.\n4. Is this acquisition successful? Justify.\n5. Give three challenges that can face a firm that uses an acquisition strategy.\nGood Luck\nAnswers\nI.\nCase Study\nII.\nMini project\n1.\n2.\n…\nIndustry Six—Transportation\nCASE\n26\nTesla Motors, Inc.:\nThe First U.S. Car Company IPO Since 1956\nAlan N. Hoffman\nBentley University\nTesla Motors, Inc. is in the business of developing, manufacturing, and selling technology for\nhigh-performance electric automotives and power train components. Hoping to develop a\ngreater worldwide acceptance of electric vehicles as an alternative to the traditional internal combustion, petroleum-based vehicles that dominate the market, Tesla is the first\ncompany that commercially produced a federally compliant electric vehicle with the\ndesign styling and performance characteristics of a high-end performance automobile.\nTesla currently offers one vehicle, the Roadster, for sale, as well as supplying electric\npower train components to Daimler for use in its Smart EV automobile. Additionally,\nTesla has a partnership with Toyota Motors to develop and supply an electric power train\nfor Toyota’s Rav4 SUV.\nCompany Background\nTesla Motors was founded in Silicon Valley in 2003 by Martin Eberhard and Marc Tarpenning\nto create efficient electric cars for driving aficionados. The founders acquired their first round\nof financing from PayPal and SpaceX founder Elon Musk who subsequently took over as\nCEO in 2008. The company unveiled its first car, a two-seat sports car named the Roadster,\nin 2006 after raising $150 million and going through four years of technological and internal struggles.1 Powered by a three-phase, four-pole AC induction motor, the Roadster has\na top speed of 130 mph and accelerates from 0 to 60 mph in under four seconds, all completely silent.2 Production of the Roadster began in March of 2008 with a first-year production\nrun of 600 vehicles.3 In June 2008, Tesla announced that it would be building a four-door,\nThis teaching case was compiled from published sources. The author would like to thank Lindsay Pacheco, Patrick\nToomey, Ned Coffee, William Gormly, and Will Hoffman for their research. Please address all correspondence to\nDr. Alan N. Hoffman, Dept. of Management, Bentley University, 175 Forest Street, Waltham, MA 02452;\email@example.com. Printed by permission of Dr. Alan N. Hoffman.\n671\n# 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 671\nZ26_WHEE0811_14_GE_CA26.indd\n671Management and Business Policy Server: Jobs4\nTitle: Strategic\nC/M/Y/K\nShort / Normal\nDESIGN SERVICES OF\nS4carlisle\nPublishing Services\n5/20/14 12:06 PM\n672\nC ase 2 6 Tesla Motors, Inc.\nfive-passenger sedan called the Model S to be built in California and be available for sale in\n2012.4 The Model S is slated to retail for approximately $57,400 and be offered with battery\noptions for 160-, 230-, or 300-mile ranges per charge. The company went public in June 2010\nwith an initial public offering at $17 a share, raising about $226.1 million in the first stock\ndebut of a car maker since the Ford Motor Company held its initial public offering in 1956.5\nTesla has also used its innovative technology to partner with traditional automobile manufacturers on their electric vehicle offerings. In 2009, Tesla signed a deal to provide Daimler\nwith the battery technology to power 1000 electric Smart city cars.6 Tesla will supply battery\npacks and electric power trains to Daimler and in return it will receive auto manufacturing\nand design expertise in areas including safety requirements and mass production of vehicles.7\nLater in that same year, Daimler announced that it had acquired a “nearly 10 percent” stake\nin Tesla.8 On October 6, 2010, Tesla entered into a Phase 1 Contract Services Agreement with\nToyota Motor Corporation for the development of a validated power train system, including a\nbattery, power electronics module, motor, gearbox, and associated software, which will be integrated into an electric vehicle version of the RAV4 for which Tesla received US$60 million.9\nIn May 2010, Tesla purchased the former NUMMI factory in Fremont, California, one\nof the largest, most advanced and cleanest automotive production plants in the world, where\nit will build the Model S sedan and future Tesla vehicles.10 Additionally, Toyota invested\nUS$50 million in Tesla and together the two companies will cooperate on the development of\nelectric vehicles, parts, and production system and engineering support.11\nStrategic Direction\nTesla desires to develop alternative energy electric vehicles for people who love to drive.\nWhile most car companies are developing small, compact electric cars, Tesla has focused\non a high-priced, high-performance electric vehicle that competes against traditional performance cars such as those offered by BMW and Porsche. The company has also devoted many\nresources to research and development in an effort to produce an electric power train that has\nboth long mileage between recharges and the high performance that car enthusiast’s desire.\nTesla’s main objectives are to achieve both growth in sales and profits, provide technological leadership in the field of electric vehicles, and foster sustainability and social responsibility.\nThe company desires for growth are served with its development and sale of the Model S vehicle\nthat is expected to retail for almost half of the Roadster price and thus create higher demand and\nrevenue. The company further strives for growth through its strategic partnerships with Toyota and\nDaimler to supply electric power trains to those companies for use in their electric vehicle designs.\nThe company’s objectives of sustainability and social responsibility are shown through its\ndesire to develop automobiles that are not powered by petroleum products and produce very\nlittle carbon emissions. The company won the Globe Sustainability Innovation Award 2009.\nTesla’s Competition\nTesla’s products participate in the automotive market based on its power train technology. It\ncurrently competes with a number of vehicles in the non-petroleum powered (alternative fuel)\nautomobile segment from companies such as Mitsubishi, Nissan, General Motors (Chevy),\nToyota, BMW, and Honda to name a few. Within this market segment, there are four primary\nmeans of power train propulsion which differentiate the various competitors in this market:\n◾\nElectric Vehicles (EV) are vehicles powered completely by a single on-board energy storage system (battery pack or fuel cell) which is refueled directly from an electricity source.\nBoth the Tesla Roadster and the Model S are examples of electric vehicles.\n# 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 672\nZ26_WHEE0811_14_GE_CA26.indd\n672\nTitle: Strategic Management\nand Business Policy Server: Jobs4\nC/M/Y/K\nShort / Normal\nDESIGN SERVICES OF\nS4carlisle\nPublishing Services\n5/20/14 12:06 PM\nCase 26 Tesla Motors, Inc.\n◾\n◾\n◾\n673\nPlug-in Hybrid Vehicles (PHEV) are vehicles powered by both a battery pack with an\nelectric motor and an internal combustion engine that can be refueled both with traditional\npetroleum fuels for the engine and electricity for the battery pack. The internal combustion engine can either work in parallel with the electric motor to power the wheels, such\nas in a parallel plug-in hybrid vehicle, or be used only to recharge the battery, such as in\na series plug-in hybrid vehicle like the Chevrolet Volt.\nHybrid Electric Vehicles (HEV) are vehicles powered by both a battery pack with an\nelectric motor and an internal combustion engine but which can only be refueled with\ntraditional petroleum fuels as the battery pack is charged via regenerative braking, such\nas used in a hybrid electric vehicle like the Toyota Prius.12\nHydrogen Vehicles are vehicles powered by liquefied hydrogen fuel cells. The power\nplants of such vehicles convert the chemical energy of hydrogen to mechanical energy\neither by burning hydrogen in an internal combustion engine, or by reacting hydrogen\nwith oxygen in a fuel cell to run electric motors.13 These vehicles are required to refuel\ntheir hydrogen fuel cells at special refueling stations. Examples of these types of vehicles\nare the BMW Hydrogen 7 and the Honda Clarity.\nMitsubishi i-MiEV\nEstablished in Japan in 1970, Mitsubishi Motors Corporation is a member of the Mitsubishi\nconglomerate of 25 distinct companies. Mitsubishi Motors is headquartered in Tokyo, Japan,\nand employs roughly 31,000 employees. The company sells automobiles in 160 countries\nworldwide and in 2010 sold 960,000 units.14 Within the United States, the company had a\nmeager 0.5\\% of the market share in 2010 with 55,683 units sold.15 Along with traditional\ngasoline engine automobiles, the company has long been involved in the R&D of electric\nvehicles. Mitsubishi has been involved in electric vehicle research and development since the\n1960s with a partnership with the Tokyo Electric Power Company (TEPCO).16 Since 1966 to\nthe present, the company has dabbled in electric vehicle and battery research and development\nwith numerous prototype vehicles produced.\nIn 2009. Mitsubishi released its newest EV car called the i-MiEV (Mitsubishi Innovative\nElectric Car). The i-MiEV is a small, four-passenger, all-electric car with a top speed of approximately 80 MPH and a quoted range of 75 miles on a single charge based on U.S. driving\nhabits and terrain.17 The car is based on lithium-ion battery technology. In October 2010, the\ncompany announced that it had reached the 5000 production unit mark for the car.18 Currently the i-MiEV is being sold in Japan, other Asian countries, Costa Rica, and 14 countries\nin Europe. The Japanese price of the i-MiEV was originally US$50,500 but was reduced to\nUS$42,690 in mid-2010 due to competition from other car companies. Mitsubishi plans on\nintroducing the i-MiEV to the U.S. market in the fall of 2011.\nNissan LEAF\nThe Nissan Motor Company, formed in 1933, is headquartered in Yokohama, Japan and employs over 158,000 workers. Currently, it builds automobiles in 20 countries and offers products and services in 160 countries around the world.19 In 2010, it sold globally over 3 million\nvehicles in its first three fiscal quarters (April 2010–December 2010) with over 700,000 of\nthose being sold in the United States.20 The company operates two brands, Nissan and Infinity,\nwhich design and sell both passenger vehicles and luxury passenger vehicles.\nOn December 3, 2010, Nissan introduced the LEAF, which it billed as the world’s\nfirst 100\\% electric, zero-emission car designed for the mass market.21 The LEAF is a fivepassenger electric car with a top speed of 90 mph and a quoted range of 100 miles on a single\n# 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 673\nZ26_WHEE0811_14_GE_CA26.indd\n673Management and Business Policy Server: Jobs4\nTitle: Strategic\nC/M/Y/K\nShort / Normal\nDESIGN SERVICES OF\nS4carlisle\nPublishing Services\n5/20/14 12:06 PM\n674\nC ase 2 6 Tesla Motors, Inc.\ncharge using lithium-Ion battery technology. The current 2011 price in the United States\nfor the LEAF is approximately US$33,000, which is also eligible for the US$7500 electric\nvehicle tax credit. It is reported that Nissan had sold 3657 LEAFs by the end of February 2011\nwith 173 of the sales within the United States and the rest in Japan.22\nChevy Volt\nChevrolet Motor Company was formed in 1911 and joined the General Motors Corporation\nin 1918.23 GM has its global headquarters in Detroit, Michigan, and employs 209,000 people\nin every major region of the world and does business in more than 120 countries.24 In 2010,\nChevrolet sold 4.26 million vehicles worldwide and 1.57 million in the United States.25\nIn mid-December 2010, Chevy began delivery of a four-passenger, plug-in hybrid electric vehicle called the Volt. The Volt operates by using an electric engine until the batteries\nare discharged and then a gasoline engine kicks in for what Chevy calls “extended-range”\ndriving. The car is quoted as having a range of 35 miles in electric mode and an additional\n340 miles of extended driving using the gasoline engine.26 It is reported that Chevy had sold\n928 Volts by the end of February 2011; all within the United States.27 The current 2011 price\nin the United States for the Volt is approximately US$42,000, which is also eligible for the\nUS$7500 electric vehicle tax credit.\nToyota Prius\nThe Toyota Motor Company was established in 1937 and is headquartered in Toyota City,\nJapan. It employs over 320,000 employees worldwide with 51 overseas manufacturing companies in 26 countries and regions.28 Toyota’s vehicles are sold in more than 170 countries\nand regions. For fiscal year 2010, Toyota sold over 7.2 million vehicles worldwide, of which\n1.76 million were sold in the United States.29\nIn 1997, Toyota introduced a five-passenger, gasoline-electric hybrid automobile\ncalled the Prius. The Prius has both a gasoline engine and an electric motor, which is used\nunder lighter load conditions to maximize the car’s fuel economy. The electric batteries are\nrecharged via the gasoline engine only. On April 5, 2011, Toyota announced that it had sold its\n1 millionth Prius in the United States and had surpassed 2 million global sales 6 months earlier\nin October 2010.30 Currently, Toyota offers four versions of the Prius in the United States with\nprices ranging from US$23,000 to US$28,000. The company has announced a plug-in version\nof the Prius, which is slated for sale in 2012.\nBMW Hydrogen 7\nBayerische Motoren Werke (BMW) was established in 1916 in Bavaria, Germany. Originally,\nthe company started manufacturing airplane engines, but after World War I, Germany was\nnot allowed to manufacture any airplane components as part of the terms of the armistice.31\nThe company turned its focus to motorcycle engine development and subsequently, in 1928,\ndeveloped its first automobile. Presently, the company is headquartered in Munich, Germany,\nand employs approximately 95,000 workers. In 2010, BMW sold approximately 1.2 million\nvehicles.32\nIn 2006, BMW introduced the four-passenger Hydrogen 7 automobile that was the world’s\nfirst hydrogen-drive luxury performance automobile.33 The car is a dual-fuel vehicle capable\nof running on either liquid hydrogen or gasoline with just the press of a button on the steering\nwheel.34 The combined range for the car is approximately 425 miles with the hydrogen tank\n# 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 674\nZ26_WHEE0811_14_GE_CA26.indd\n674\nTitle: Strategic Management\nand Business Policy Server: Jobs4\nC/M/Y/K\nShort / Normal\nDESIGN SERVICES OF\nS4carlisle\nPublishing Services\n5/20/14 12:06 PM\nCase 26 Tesla Motors, Inc.\n675\ncontributing 125 miles and the gasoline providing the rest. To date, BMW has only produced\n100 units of the vehicle, which have been leased/loaned to public figures. The car has not been\nmade available for purchase to the general public and no sale price has been quoted.\nHonda Clarity\nThe Honda Motor Company was established in the 1940s in Japan originally as a manufacturer of engines for motorcycles.35 Honda produced its first production automobile in 1963\nand has been a global supplier since then. In 2010, Honda sold 3.4 million automobiles worldwide with 1.4 million being sold in the United States.36 In 2008, Honda began production of\nits four-passenger FCX Clarity, the world’s first hydrogen-powered fuel-cell vehicle intended\nfor mass production.37 The FCX Clarity FCEV is basically an electric car because the fuel cell\ncombines hydrogen with oxygen to make electricity which powers an electric motor, which\nin turn propels the vehicle.38 The car can drive 240 miles on a tank, almost as far as a gasoline car, and also gets higher fuel efficiency than a gasoline car or hybrid, the equivalent of\n74 miles per gallon of gas.39 The company planned to ship 200 of the Clarity to customers in\nSouthern California who can lease it for three years at US$600 a month.\nBarriers to Entry and Imitation\nThe barriers to entry into the non-petroleum-powered automobile market segment are high.\nThe hybrid technology for vehicles such as the Prius is well understood by the major automobile companies and many of them have developed and marketed their own version of electric/\ngasoline hybrid vehicles. The all-electric and hydrogen fuel-cell automobiles are unique technologies that require resources to develop. In this segment, the energy storage and motor\ntechnologies are barriers to new competitors. Rechargeable battery systems and fuel cells are\nnewer technologies that require large investments in research and development. A competitor\nwould need to develop its own technologies or partner with another company to acquire\nthese resources.\nProprietary Technology\nAs electric vehicles are a newer technology, Tesla’s innovation has led it to have some unique\nresources in technology and intellectual property over its competitors. Tesla’s proprietary\ntechnology includes cooling systems, safety systems, charge balancing systems, battery engineering for vibration and environmental durability, customized motor design and the software\nand electronics management systems necessary to manage battery and vehicle performance\nunder demanding real-life driving conditions. These technology innovations have resulted\nin an extensive intellectual property portfolio—as of February 3, 2011, the company had\n35 issued patents and approximately 280 pending patent applications with the United States\nPatent and Trademark Office and internationally in a broad range of areas.40 These patents and\ninnovations are not easily duplicated by competitors.\nA second unique resource that a company developing electric vehicles would require\nwould be its battery cell design. Tesla’s current battery strategy incorporates proprietary packaging using cells from multiple battery suppliers.41 This allows the company to limit the power\nof its battery supply chain. The company also has announced a partnership with Panasonic to\njointly collaborate on next-generation battery development.\nInherent to the requirements for an electric automobile company is the knowledge and\nskills of the workforce. Tesla believes that its roots in Silicon Valley have enabled it to recruit\n# 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 675\nZ26_WHEE0811_14_GE_CA26.indd\n675Management and Business Policy Server: Jobs4\nTitle: Strategic\nC/M/Y/K\nShort / Normal\nDESIGN SERVICES OF\nS4carlisle\nPublishing Services\n5/20/14 12:06 PM\n676\nC ase 2 6 Tesla Motors, Inc.\nengineers with strong skills in electrical engineering, power electronics, and software engineering to aid it in development of its electric vehicles and components.42 Being one of the\nfirst to market with a high-performance EV also gives the company a first-mover advantage\nin experience and branding.\nTesla has an agreement with the automobile manufacture Lotus for the supply of its Roadster vehicle bodies. The company entered into a supply agreement in 2005 with Lotus that\nrequires Tesla to purchase a certain number of vehicle chassis and any additional chassis will\nrequire a new contract of redesign to a new supplier.43 This places a large dependence on Lotus\nto both fulfil the existing contract and also gives them significant power in the event that Tesla\nrequires additional Roadster units.\nTesla is dependent on its single battery cell supplier. The company designed the Roadster\nto be able to use cells produced by various vendors, but to date there has only been one supplier for the cells fully qualified. The same is also true for the battery cells used for battery\npacks that Tesla supplies to other OEMs.44 Any disruption in the supply of battery cells from\nits vendors could disrupt production of the Roadster or future vehicles and the battery packs\nproduced for other automobile manufacturers.45\nExternal Opportunities and Threats\nElectric vehicle companies may be able to take advantage of many of the opportunities with\nthe continuous shift toward green energy. President Barack Obama has publicly committed to\nfunding “green” or alternative energy initiatives through various vehicles.46 In his 2011 State\nof the Union Address, the President set a goal of getting one million electric cars on the road by\n2015.47 Within the United States, various federal and state governmental agencies are currently\nsupporting loan programs through the likes of the Department of Energy and the California\nZero-Emission Vehicle (ZEV) program. The tragic Louisiana BP oil spill that took place from\nApril to May 2010 intensified the focus on decreasing U.S. dependence on petroleum products. It also highlighted the fact that while alternative energy is currently more expensive to\nproduce than conventional energy, there are hidden environmental and human costs that must\nbe taken into consideration when making this comparison. This increased focus on alternative\nenergy has been beneficial for the EV industry, benefiting both Tesla and its competitors. Due\nin part to this increase in funding, Tesla is competing in an industry that is expanding, making\nits absolute market share less relevant than how fast it is growing its market share.\nDespite the new dawn of interest and pledges for funding alternative energy, many plans\nfor funding will never come to fruition. Currently in the United States, there is a massive\nbudget deficit, and members of the Republican Party have focused their demands for budget\ncuts in the “discretionary spending” arena, which is where alternative energy funding falls.\nNotably, some of the cuts proposed would seriously affect programs funding energy efficiency,\nrenewable energy, and the DOE Loan Guarantee Authority.48 The EV industry has very few\nlobbyists compared to the traditional car and petroleum industry, and so is more vulnerable to\nbeing targeted in budget cuts. These cuts represent a serious threat to the continued development of the alternative energy and electric car industry. For EVs to come into widespread use,\nthe United States must develop an EV-charging infrastructure, and this will need the support\nof both state and federal government in the form of both funding and regulation.\nNot only is the federal government facing budget cuts, but the state of California is also\ndealing with massive shortfalls and reductions in services and funding. This is especially\nimportant to Tesla since it operates its manufacturing in California, and one of its largest target markets is California, due to the strict emissions regulation and traditional green focus of\nCalifornians.\n# 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 676\nZ26_WHEE0811_14_GE_CA26.indd\n676\nTitle: Strategic Management\nand Business Policy Server: Jobs4\nC/M/Y/K\nShort / Normal\nDESIGN SERVICES OF\nS4carlisle\nPublishing Services\n5/20/14 12:06 PM\nCase 26 Tesla Motors, Inc.\n677\nThere are also many regulations to which companies developing electric vehicles are subjected. A topic of current interest is the upcoming change in how the range of electric vehicles\nis calculated—a regulation determined by the EPA. It is thought that the new calculation will\nresult in a lower advertised range for all the electric vehicles, which may make their superiority over traditional petroleum-based vehicles less prevalent. There are also numerous safety\nrequirements that EVs must adhere to, governed by the National Highway Traffic Safety Administration. Companies that produce less than 5000 cars for sale and have three product lines\nor less can qualify for a gradual phase-in regulation for advanced airbag systems and other\nsafety requirements. Similarly, in Europe, smaller companies are currently exempt from many\nof the safety testing regulations, and are currently allowed to operate under the “Small Series\nWhole Vehicle Type Approval.”\nAdditionally, battery safety and testing is regulated by the Pipeline and Hazardous Materials Safety Administration, which is based on UN guidelines regarding the safe transport of\nhazardous materials. These guidelines ensure that the batteries will perform or travel safely\nwhen undergoing changes in altitude, temperature, vibrations, shocks, external short circuiting, and overcharging.\nOther regulatory issues include automobile manufacturer and dealer regulations, which\nare set on a state-by-state basis. In some United States states, such as Texas, it is not legal for\nthe dealer and manufacturer to be owned by the same company. Therefore, these regulations\nwould impact the market penetration levels that a company wishing to utilize a distribution\nmodel based on being able to both manufacture and sell its cars through its own wholly owned\ndealerships would be able to reach in certain states.\nAn interesting, though potentially costly, new regulation is the minimum noise requirements, mandated by the Pedestrian Safety Enhancement Act of 2010 signed in January 2011.\nThere have been concerns that since electric cars are so much quieter than their combustionengine counterparts that their design must be somehow altered to increase the amount of noise\nthey generate in order to make them easier to hear by people with impaired vision. These\nregulations are likely to take effect by 2013 and could alter electric vehicle designs.\nThe macroeconomic conditions of 2011 and the outlook for the near future is slow but\ncontinued growth,49 in contrast to the past several years of economic retraction. In recent\nyears, American buyers, and indeed buyers in most parts of the world, have cut back on discretionary purchases in light of high unemployment and general economic uncertainty. The\neconomic recovery has created more demand for higher-priced luxury vehicles.\nThe largest component of what makes an electric vehicle attractive from a financial standpoint is the savings in traditional fuel costs. There is a huge difference between the cost of\nelectricity to recharge an electric vehicle versus the cost of gas to fuel a conventional vehicle.\nHence, as oil prices increase, the financial incentive to purchase an electric vehicle increases\nas well. Additionally, the variability of oil prices means that owners of conventionally powered vehicles cannot predict what their fuel costs for the year will be with any confidence.\nThus, the much more stable costs of electricity make an electric vehicle more desirable. It is\nnot likely that the cost of oil will ever see a sustained and significant drop in price, nor is it\nlikely that the cost of oil will ever be as stable as the cost of electricity, creating a sustained\nadvantage over traditionally powered vehicles.\nElectric vehicle manufacturers are currently riding the wave of environmental consciousness that began in the 1960s, and has been slowly gaining momentum since. The “Green\nmovement” encourages people to make choices that lessen their negative impact on the environment, and to use resources that are renewable. Alternative fuel products fit this description,\nby both reducing consumer demand for oil and eliminating harmful emissions during use. For\nthe time being, electric vehicles still leave a noticeable “footprint,” though one not nearly as\nlarge as a conventional car.\n# 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 677\nZ26_WHEE0811_14_GE_CA26.indd\n677Management and Business Policy Server: Jobs4\nTitle: Strategic\nC/M/Y/K\nShort / Normal\nDESIGN SERVICES OF\nS4carlisle\nPublishing Services\n5/20/14 12:06 PM\n678\nC ase 2 6 Tesla Motors, Inc.\nChallenges to Adoption of Electric Cars:\nConsumer Perceptions\nConsumer perceptions of electric vehicles are a huge challenge to adoption. Many people\nthink of electric vehicles as being underpowered, clunky looking, hard to charge, quirky, and\nundependable. Public experience with traditional vehicles and their concerns about the newness of alterative fuel vehicles must be overcome.\nAdditionally, the absence of a public infrastructure for recharging electric vehicle\nbatteries introduces a “Which came first – the chicken or the egg?” paradox: There is no\ninfrastructure because there are not enough electric vehicles, and part of the reason why\nthere are not many electric vehicles is because there is no infrastructure to support them. For\nthe time being, consumers must charge their vehicles either at home, or possibly at their place\nof work. This limits the electric vehicle driving range, which has a negative impact on the\nimage of electric vehicles with consumers.\nAnother concern that consumers have when considering an alternative energy vehicle is\nthe cost. Electric vehicles, as well as most alternative fuel vehicles, cost significantly more\nthan traditional vehicles of similar style and performance. This is due both to the cost of the\nresearch and development and the high cost of materials, particularly for the battery cells.50\nAdditionally, the production of low environmental impact products is in most cases more\nexpensive than their conventionally produced counterparts. So long as there are areas of the\nworld willing to sacrifice the environment (natural resources, air, water, waste production) to\ncreate low-cost products, this dynamic will continue.\nThe EV industry is hampered by the public view of the limited range of vehicles in comparison to traditional gasoline cars. In recent years, there has been much advancement in the\nways of sustainable energy. High gas prices along with increased awareness on environmental\nimpacts have become the catalysts for new research into sustainability. There has been an\nincrease in new battery technology that is an opportunity for the electric vehicle industry. Currently, the most viable battery for an electric vehicle, that also provides performance, is the\nlithium-ion battery (is the same type found in your laptop). Companies like Planar Energy\nare now coming out with “solid state, ceramic-like” batteries that could potentially provide\nmore energy for a lower cost.51 With these new advances, there is a distinct opportunity for\nelectric car companies to create a better performing and less expensive vehicle. Electric vehicle companies that can develop battery architectures that cross this limited mileage chasm will\nhave positive implications in the public view. Tesla is credited to have one of the industry’s\nbest batteries, and it is on the cutting edge of innovative technology. This type of innovative\ntechnology is what distinguishes Tesla from other competitors in its industry, and will continue to set it apart across contexts in the market.\nElectric vehicles are also reliant on a network of available power sources. Though infrastructure is currently limited, companies like GE are already planning a rollout of EV charging\nstations to be sold to households, companies, and local governments.52 The U.S. government\nhas set out to aid in the building of electric vehicle charging stations, with government grants\nsupporting the installation of the electric-car charging stations in areas such as San Francisco\nand Oregon, which will soon host 15,000 stations around the state, some of them public.53\nAn increase in charging station technology and infrastructure should broaden the demand\nfor electric vehicles that is still encumbered by beliefs of limited service and “refueling”\ncapabilities.\nAlong with the advantages of technological innovations in electric vehicle designs,\nthere are also respective weaknesses to consider, including the amount of time necessary to\ncharge a battery and the limited driving range per charge. Currently, Tesla has reduced the\nrecharge time of its battery cell to 45 minutes, but this is a long time compared to the few\n# 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 678\nZ26_WHEE0811_14_GE_CA26.indd\n678\nTitle: Strategic Management\nand Business Policy Server: Jobs4\nC/M/Y/K\nShort / Normal\nDESIGN SERVICES OF\nS4carlisle\nPublishing Services\n5/20/14 12:06 PM\nCase 26 Tesla Motors, Inc.\n679\nminutes that it takes cars to refuel at the gas pump. Coupled with the recharge time of the\nbattery cells is the limited range of electric vehicles. For owners of conventional cars who\nare used to having a range of 300 miles or more, with a refilling time of 3 to 4 minutes, the\nlimited range and recharging options of EVs can seem very restrictive. However, the average\nAmerican driver travels only 35 miles per day, and the average trip length is only 10 miles.54\nMore importantly, long distance trips (more than 100 miles, accounting for less than 1\\% of\nall trips) made by American drivers have a median distance of 194 miles.55 This indicates\nthat most drivers will very infrequently be driving non-stop for more than 245 miles, making\nrange a virtual non-issue. However, while the facts may be different from perception, it is the\nperception of consumers that will drive their purchasing behavior, thus still making the range\nissue a serious concern for EV manufacturers.\nThe second issue with batteries is their end-of-life concerns. Rechargeable batteries, over\ntime, will become less efficient, and will no longer hold their charge as well as when the\nbattery was new. The same issue exists with electric vehicle batteries. Tesla estimates that\nafter 100,000 miles or seven years, the Roadster’s battery will only operate at 60\\%–65\\%\nefficiency.56 This decrease in battery performance will decrease the range of the car, and\nwill start taking place well before the 100,000 mile/7-year marker. Proper battery disposal is\nanother issue. At this time, there are not many battery disposal facilities due to the limited\nelectric vehicle market to date.\nFinally, maintenance of electric vehicles is a concern, given the paucity of many\nadequately trained repair facilities and the low market penetration of the cars. There simply\nare not many EVs on the road, and conventional car repair shops do not have proper training\nin the repair of electric vehicles. This can have a detrimental effect on adoption of EVs.\nIn recent years, international emerging markets have increased their infrastructures\nand stratification of wealth and the current consumer demographic is better equipped to afford\nmore expensive vehicles as a result. Additionally, there is a growing global awareness and\ncommitment to developing sustainable and “green” energy and innovations. These factors\nmay increase opportunities for sales of EVs in these markets.\nOil Price\nThe rising cost of oil is also a major opportunity for electric vehicle manufacturers to cultivate\na great presence in the market, due to the demand of consumers to seek alternative types of\nvehicles, including electric. The global future of the EV market is promising based on the current trends in oil cost, consumption, and awareness about conservation.\nGlobal economic policies, such as the Kyoto protocol, advance the cause of environmentally sustainable products, such as electric vehicles. However, every country has the choice to\neither ratify these protocols, or not. This lack of accountability means that the financial and\npolitical support of environmentally sustainable products are highly variable, and can affect\nthe favorability and feasibility of selling electric vehicles in every country in which they are\nsold or manufactured.\nFinances\nRevenues at Tesla Motors are derived from sales that are recognized from two sources, sales\nof the Roadster and sales of Tesla’s patented electric power train components (see Exhibit 1).\nCoinciding with the sales of the Roadster, Tesla recognizes income from the sale of\nvehicle options and accessories, vehicle service and maintenance, and the sale of Zero-Emission\nVehicle (ZEV) credits.\n# 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 679\nZ26_WHEE0811_14_GE_CA26.indd\n679Management and Business Policy Server: Jobs4\nTitle: Strategic\nC/M/Y/K\nShort / Normal\nDESIGN SERVICES OF\nS4carlisle\nPublishing Services\n5/20/14 12:06 PM\n680\nC ase 2 6 Tesla Motors, Inc.\nExhibit 1\n1800\nTesla Projected\nSales, in US$ millions\nOther\n1600\nBluestar\nModel S\n1400\nRoadster\nIn $ Millions\n1200\n1000\n800\n600\n400\n200\n0\n2008\n2009\n2010E 2011E 2012E 2013E 2014E 2015E 2016E 2017E\nZero-Emission Vehicle credits are required by the State of California to ensure auto\nmanufacturers design vehicles to meet strict eco-friendly guidelines. Credits are acquired by\nproducing and selling vehicles that meet a minimum emission level in an attempt to offset the\npollutants produced by mainstream vehicles. If a manufacturer chooses not to design ZEV\nvehicles, it is able to purchase credits from companies such as Tesla, who only produces electric\nvehicles and does not have to accrue credits. Tesla has realized sales of US$14.5 (see Exhibit 2),\nmillion in ZEV credits since 2008.\nTotal quarterly revenues at Tesla have been increasing steadily throughout 2010, but no\ndefinitive year-over-year positive trends can be established from Tesla’s sales data. Two trends\nthat do appear to be gaining in the most recent fiscal year are foreign sales and sales of power\ntrain components and related sales.\nTesla’s cash position (see Exhibit 5) is currently in a less than optimal position. Through\nits IPO, Tesla was able to raise US$226 million in June of 2010 and has also been able to take\nadvantage of state and federal programs to raise capital at low prices due to its investment in\nalternative energy programs. These sources of cash offer the company the ability to meet its\ncurrent obligations, but revenues (see Exhibits 3 and 4) have not been able to match expenses,\nresulting in the company’s largest net loss yet of US$51 million in December of 2010. The\nUnited States Department of Energy (DOE) loaned Tesla US$465 million at the beginning\nof the year, so no matter what, Tesla has to manage a “mountain of debt.”57 This specific\nExhibit 2\nAutomotive Sales\nAutomotive sales consisted of the following for the periods presented (in thousands):\nVehicle, options and related sales\nPower train component and related sales\n# 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 680\nZ26_WHEE0811_14_GE_CA26.indd\n680\nTitle: Strategic Management\nand Business Policy Server: Jobs4\n2010\n2009\n2008\nUS$75,459\n$111,555\n$14,742\n21,619\n388\n—\n$97,078\n$111,943\n$14,742\nC/M/Y/K\nShort / Normal\nDESIGN SERVICES OF\nS4carlisle\nPublishing Services\n5/20/14 12:06 PM\nCase 26 Tesla Motors, Inc.\n681\nExhibit 3\nIncome Statement\n(2010)\nThe following table includes selected quarterly results of operations data for the years\nended December 31, 2010 and 2009\n(in thousands, except per share data):\nThree Months Ended\n2010\nTotal Revenue\nGross profit\nNet loss\nNet loss per share,\nbasic and diluted\n2009\nTotal Revenue\nGross profit\nNet loss\nNet loss per share,\nbasic and diluted\nMar 31\nJun 30\nSept 30\nDec 31\nUS$20,812\n3,852\n(29,519)\n$28,405\n6,261\n(38,517)\n$31,241\n9,296\n(34,935)\n$36,286\n11,321\n(51,158)\n(4.04)\n(5.04)\n(0.38)\n(0.54)\n$20,886\n(2,046)\n(16,016)\n$26,945\n2,101\n(10,867)\n$45,527\n7,699\n(4,615)\n$18,585\n1,781\n(24,242)\n(2.31)\n(1.56)\n(0.66)\n(3.43)\nExhibit 4\nRevenue by Region\nThe following table sets forth revenue by geographic area (in thousands):\nRevenues\nCf\n2010\n2009\n2008\n$ 41,866\n$ 90,833\n$14,742\nEurope\n70,542\n21,110\n—\nAsia\n4,336\n—\n—\n$116,744\n$111,943\n$14,742\nNorth America\nExhibit 5\nTesla 2010 Financial\nHighlights\nAll info as of 12/31/2010 (in thousands)\nSales: US$97,078\nNet Profit: (US$154,328)\nOperating Margin: (125.78\\%)\nReceivables: US$6710\nCash Assets: US$99,558\nInventory: US$45,182\nTotal Debt: US$71,828\nloan has various restrictions that are structured around the progress of the Model S and several financial ratios. Tesla stands to lose revenue if the Model S delays, since the DOE loan\npays in installments as the Model S reaches various development and production benchmarks.\nAlthough debt as a percent of total capital increased at Tesla Motors, Inc. over the last fiscal\nyear to 25.96\\%, it is still in line with the automobile industry’s norm. Additionally, there are\nenough liquid assets to satisfy current obligations.58\n# 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 681\nZ26_WHEE0811_14_GE_CA26.indd\n681Management and Business Policy Server: Jobs4\nTitle: Strategic\nC/M/Y/K\nShort / Normal\nDESIGN SERVICES OF\nS4carlisle\nPublishing Services\n5/20/14 12:06 PM\n682\nC ase 2 6 Tesla Motors, Inc.\nMarketing\nTesla’s internal marketing situation has to operate with many limitations stemming from the\ncompany’s infancy and its lack of resources. Looking at the product offerings, the only vehicle\nTesla currently has on the market is the Roadster, a sporty two-seater priced at US$108,000\nand up. The high price tag puts it firmly in competition with other luxury vehicles as opposed to other electric vehicles. The key demographic market for luxury cars are white males,\n45 and older, who are married, have no kids, and make over US$75,000 a year. Primary\nconsiderations for this group when purchasing a luxury vehicle are performance, design, and\nsafety, while factors such as financing, the environment, and gas mileage are not important.59\nThe Roadster does deliver on aesthetics and performance, but it is questionable whether or not\nits electric motor will be an effective differentiator. Bearing this in mind, Tesla needs to focus\non early adopters and environmentalists, who also have the resources to afford their car. One\ncould argue that this is a narrow market segment.\nIn 2012, Tesla will roll out the Model S, a premium four-door sedan that will be variably\npriced at US$57,000 for the lowest range, US$67,000 for the mid range, and US$77,000 at\nthe top of the range. This lower-priced vehicle will target larger families and a greater-sized\nmarket. Unless it can lower the price point, this will still be a difficult sell, as households with\nchildren have less disposable income and accumulated wealth. Demand for electric cars is also\nestimated to remain below 10\\% until at least 2016, because of perceptions of high cost for\nmarginal utility.60 Two advantages Tesla does have on price, however, are the US$7500 government tax credit for buying fuel-efficient vehicles, and the low cost of maintenance and fuel.\nAside from a minimal product offering, Tesla is also limited by its distribution and fulfilment infrastructure. At the moment, Tesla has a mix of brick-and-mortar dealerships in premium locations, along with regional sales representatives, and online ordering. North America\nhas 10 stores and four reps, Europe has seven stores and four reps, and Asia has one store and\ntwo reps. Over the next few years, Tesla plans to open 50 stores in preparation of the Model S\nrollout. To ease its current lack of fulfilment capabilities, Tesla sales representatives will\narrange a test drive in your location and organize vehicle delivery. This is an inexpensive way\nto increase its distribution capabilities without investing in physical stores. This might also\nhinder sales though, given that the key demographic for luxury vehicles rely on car dealerships\nas the second most influential outlet on what car to buy.61\nTesla could ramp up distribution by allowing existing dealerships to sell its cars but\nchooses not to, preferring a customized sales approach where it has complete control over its\nmessage. To compliment direct sales, the company has avoided traditional advertising in lieu\nof product placement, Internet ads, and event marketing. It is adept at turning current customers into vocal brand ambassadors. The company website is littered with quotes from owners\nand industry reviewers singing its praises. This promotion strategy is a clear strength for Tesla,\nespecially considering that recommendations from friends and relatives, as well as general\nword of mouth, are the most influential factors for a luxury/sports car’s key demographic.\nThe Tesla brand is also inherently tied to the environmental/green movement. Because of\nthis, it has been able to generate a lot of free media publicity.\nOperations\nTesla is headquartered in Palo Alto, California, where it also manufactures its power trains,\nbattery packs, motors, and gearbox. The body and chassis for the Roadster are manufactured\nby Lotus in Hethel, England, and then are fully assembled in Menlo Park, California, for\nU.S. buyers, or Wymondham, England, for European and Asian customers. For the upcoming\nlaunch of the Model S, Tesla is building a new factory in Fremont, California, that will have a\ncapacity of 20,000 cars per year.\n# 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 682\nZ26_WHEE0811_14_GE_CA26.indd\n682\nTitle: Strategic Management\nand Business Policy Server: Jobs4\nC/M/Y/K\nShort / Normal\nDESIGN SERVICES OF\nS4carlisle\nPublishing Services\n5/20/14 12:06 PM\nCase 26 Tesla Motors, Inc.\n683\nTesla’s main operating strength lies in its intellectual property and its patents. Currently,\nTesla has 35 issued patents with another 280 pending. Proprietary components include power\ntrain technology, safety systems, charge balancing, battery engineering for vibration and environmental durability, motor design, and the electricity management system. The company also\nowns the proprietary software systems that are used to manage efficiency, safety, and controls.\nTesla’s software is designed to be updatable, and many aspects of the vehicle architecture have\nbeen designed so it can be used on multiple future models.\nTo boost operational know-how and supplement the revenue Tesla gets from sales of the\nRoadster, it also sells Zero-Emission Vehicle credits, and supplies power train and battery\npack components to original equipment manufacturers. Currently, Tesla has strategic partnerships with Daimler and Toyota, and is providing their electric vehicle expertise in the development of Daimler’s Smart Car and Toyota’s new RAV4. These partnerships are an opportunity\nfor Tesla to diversify its revenue streams and network and access greater supply chains.\nAs previously mentioned, Tesla has decided to distribute through its own network of\nstores and regional sales staff as opposed to selling through established dealer networks.\nDespite fulfilment implications, Tesla considers owning its own distribution channel as a\ncompetitive advantage. Channel ownership not only allows for greater operating efficiency\nthrough inventory control, but also gives Tesla control over its sales message, warranty, price,\nbrand image, and user feedback. The drawbacks to this strategy include the high capital costs\nof buying real estate and constructing showrooms and the cost of additional sales staff.\nCurrently, over 2000 parts are sourced from 150 suppliers. One major issue with the current supply structure is that many vendors are the single source. This leaves Tesla vulnerable\nto delays and increased costs. Due to limited economies of scale, (as of December 31, 2010\nonly 1500 Roadsters were sold) production costs also run high. The first Roadster was sold\nin early 2008, but revenues didn’t exceed the costs of production until the second quarter of\n2009. Tesla is still struggling to bring the costs of the Model S down so it can be profitably\nsold at US$57,000.\nServicing vehicles presents another challenge for Tesla. Given the complex and proprietary components of their cars, the average mechanic won’t be able to diagnose and fix issues. Lacking the appropriate physical infrastructure, Tesla sends maintenance technicians\n(which it refers to as Rangers) to wherever the car owner lives. The cars themselves also have\nadvanced diagnostic systems that link up to a server at Tesla’s headquarters. Issues can be determined prior to sending Rangers out to fix the car, which saves time and resources. Overall\nthough, this system isn’t as convenient as having a worldwide infrastructure of third-party\nrepair shops.\nThis Ranger service system may work for the time being, with only 1500 cars on the road,\nbut with the anticipated sales of the Model S and subsequent vehicles, the services infrastructure will have to be greatly expanded. Two ideas that Tesla hopes will come to fruition are an\nincrease in fast charge stations, and the creation of a battery replacement network. The latter\nharkens back to the days where cowboys would exchange tired horses for fresh steeds. In anticipation of this, the Model S will incorporate removable battery packs.\nHuman Resources\nTesla Motors operates more like a software company than a car company, and innovation\nis top priority. CEO Elon Musk is a serial entrepreneur who has stocked his executive team\nwith half-techie, half-business hybrid employees who are former industry leaders. Taking a\ncue from Google, the environment is fast paced and culturally unstructured. Employees are\nencouraged to challenge norms, think outside the box, and commit time to innovation. In order\nto boost teamwork and eliminate departmental silos, most staff work in an open room with no\nwalls. Tesla prides itself on solutions created through an integration of all departments working side by side. An explanation for this corporate culture can be found in the hiring of Human\n# 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 683\nZ26_WHEE0811_14_GE_CA26.indd\n683Management and Business Policy Server: Jobs4\nTitle: Strategic\nC/M/Y/K\nShort / Normal\nDESIGN SERVICES OF\nS4carlisle\nPublishing Services\n5/20/14 12:06 PM\n684\nC ase 2 6 Tesla Motors, Inc.\nResources director, Arnnon Geshuri, who was the former director of staffing and operations at\nGoogle. Because of the emphasis on technology and innovation, the majority of manufacturing is done in California, as opposed to areas with lower labor costs, due to the abundance of\ntop-quality engineers.\nDue to the extreme importance of Tesla’s intellectual capital, it is imperative to have\nhappy employees. Aside from being able to get in on the ground floor of an innovative new\ncompany, employees are also given competitive salaries, benefits, an aesthetically pleasing\noffice space, and “meaningful equity.”\nCurrently, Tesla has about 900 employees, including 212 in the power train and R&D\ndepartment, 170 in vehicle design and engineering, 121 in sales and marketing, 79 in the service department, and 213 in the manufacturing department. Tesla is currently looking to hire\nmore graduating engineering students and sales staff, especially those who have had some\nhands-on experience. Recruiting and retaining the best talent is a paramount goal, because of\ndifficulties arising from Tesla’s capacity to design, test, manufacture, and sell at the same time.\nTesla’s Future: Success or Bust?\nIn a nutshell, Tesla has limited sales in a limited market, and is making low margins due to\nhigh product costs and the lack of economies of scale. However, if oil prices continue to climb\ntoward US$200 a barrel and new electric cars, such as the Chevy Volt and Nissan Leaf, catch\non with consumers, the upside for Tesla could be enormous. Can Tesla reach the tipping point?\nOr will it become just a footnote in automotive history? Time will tell.\nNotes\n1. NYTimes.com. (2010) Tesla Motors. http://topics.nytimes\n11. Edmunds InsideOnline.com. (2010, May 21). Toyota and Tesla\n.com/top/news/business/companies/tesla_motors/index.html\n2. Blanco, Sebastian. (2006) Roadster Unveiled in Santa Monica.\nhttp://green.autoblog.com/2006/07/20/tesla-roadster-unveiledin-santa-monica/\n3. U.S. Dept. of Energy. (2008) Tesla Motors Starts Production of\nIts Electric-Only Roadster http://apps1.eere.energy.gov/news/\nnews_detail.cfm/news_id=11645\n4. Tesla Motors. (2008) Tesla Motors to Manufacture Sedan in\nCalifornia. http://www.teslamotors.com/about/press/releases/teslamotors-manufacture-sedan-california\n5. http://topics.nytimes.com/top/news/business/companies/tesla_\nmotors/index.html\n6. Chuck Squatriglia. “Tesla Motors Joins Daimler on a Smart\nEV,” Wired.com, January 13, 2009. http://www.wired.com/\nautopia/2009/01/tesla-motors-jo/\n7. Eric Loveday. AllCarsElectric.com. “Daimler Announces New\nStrategic Partner Tesla Motors.” http://www.allcarselectric\n.com/blog/1020804_daimler-announces-new-strategic-partnertesla-motors\n8. Jim Motavalli. “Daimler Takes a Stake in Tesla Motors,” The\nNew York Times, May 9, 2011. http://wheels.blogs.nytimes.\ncom/2009/05/19/daimler-takes-a-stake-in-tesla-motors/\n9. Tesla Motors. (2010) Tesla Notifies SEC of Agreement with\nToyota to Develop Electric Version of RAV4. http://www.teslamotors.com/about/press/releases/tesla-notifies-sec-agreementtoyota-develop-electric-version-rav4\n10. Tesla Motors. (2010) Tesla Motors Announces Factory in\nNorthern California. http://www.teslamotors.com/about/press/\nreleases/tesla-motors-announces-factory-northern-california\nto Make Electric Vehicles at Mothballed NUMMI Plant. http://\nwww.insideline.com/tesla/toyota-and-tesla-to-make-electricvehicles-at-mothballed-nummi-plant.html\n12. Tesla Motors, Inc. (March 3, 2011) 2010 10-K Annual Report.\nPg. 28.\n13. Wikipedia. Hydrogen vehicle. http://en.wikipedia.org/wiki/\nHydrogen_vehicle\n14. Mitsubishi Motors. (2011). Overview of Mitsubishi Motors. Retrieved from http://www.mitsubishi-motors.com/en/corporate/\naboutus/profile/index.html\n15. Wall Street Journal.com. (2011, May 3). Sales and Share of\nTotal Market by Manufacturer. http://online.wsj.com/mdc/\npublic/page/2_3022-autosales.html#autosalesE\n16. Mitsubishi Motors. (2011). History of Mitsubishi Motors’ EV\nDevelopment. Retrieved from http://global.ev-life.com/\n17. Brad Berman. (2010, March 9). Mitsubishi i. Retrieved from\nhttp://www.plugincars.com/mitsubishi-i-miev/review\n18. PureGreenCars.com. (2010, November 24) http://puregreencars.com/Green-Cars-News/markets-finance/mitsubishii-miev-production-hits-5000-units.html\n19. Nissan Motors. (2011). Corporate Information. Retrieved from\nhttp://www.nissan-global.com/EN/COMPANY/PROFILE/\n20. Nissan Motors. (2011, February 9).FY2010 3rd Quarter Financial Results [Press Release]. http://www.nissan-global.com/EN/\nIR/FINANCIAL/\n21. Nissan Motors. 100\\% Electric Zero-Emission Nissan LEAF Debuts in Japan Start of Sales on December 20th [Press Release].\nhttp://www.nissan-global.com/EN/NEWS/2010/_STORY/\n101203-01-e.html\n# 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 684\nZ26_WHEE0811_14_GE_CA26.indd\n684\nTitle: Strategic Management\nand Business Policy Server: Jobs4\nC/M/Y/K\nShort / Normal\nDESIGN SERVICES OF\nS4carlisle\nPublishing Services\n5/20/14 12:06 PM\n\nPurchase answer to see full\nattachment
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