Abstract

This Work Project presents a case study to be used in masters and executive education Strategy courses to better illustrate the dynamics of competition in markets with demand-side increasing returns. Through the real case of Tesla, this project intends to evaluate the strategic decisions pursued by the firm in the nascent electric vehicle market to overcome the hurdle of critical mass and provide a platform on which e-mobility can realize its full potential. In the analysis that follows, we conclude that Tesla created a model that exceeds the conventional auto business to allow its vehicles to move along the technology adoption curve.