Tesla$$s Strategy in $2022$: Can It Deliver Sustained Revenue Growth and Profitability?

Tesla is an intriguing company headed by a very intelligent CEO, Elon Musk, who has an affinity for making bold and strategically astute decisions about how Tesla is going to revolutionize the global automobile industry and supplant gasoline$-$powered vehicles with battery$-$powered vehicles. In all likelihood, students will find this a fascinating case and will be quick to express their opinions$/$convictions about the company, about Elon Musk$$s strategic vision, about the strategy that Tesla is pursuing, and about the company$$s prospects for long$-$term competitive success. As you and a number of your students probably know, Tesla is one of the most widely watched companies in the world, and news of its every move and every quarterly report attracts widespread attention and rapt investor interest.

Before completing these exercises, be sure to read the Tesla case.What are the key elements of Tesla$$s strategy?

Select $$yes$$ for those statements below that are accurate and choose $$no$$ for those that are not.

Tesla pursues a product line strategy by introducing a number of models for customers to choose from $($Model S$,$ Model X crossover, Model $3,$ and Model Y crossover$).$

Yes

No

Tesla$$s initial distribution strategy entailed selling vehicles directly to buyers and providing them with after sale service.

Yes

No

Tesla$$s strategy also included the acquisition of smaller dealerships to be used as service centers.

Yes

No

Tesla has the ability to create and control its own version of a compelling buying customer experience, one that was differentiated from the buying experience consumers had with sales and service locations of franchised automobile dealers.

No

Yes

Tesla believed in developing all Tesla components in$-$house to protect its rapidly evolving platform for electric vehicles.

No

Yes

Tesla has the opportunity to capture the sales and service revenues of traditional automobile dealerships.

Yes

No

As of early $2021,$ Tesla introduced a new hybrid vehicle.

No

Yes

Tesla has the ability to achieve greater operating economies in performing sales and service activities.

No

Yes

A major component of Tesla$$s strategy to build rapidly growing long$-$term demand for its vehicles and to provide good customer service was to make battery recharging while driving long distances convenient and worry$-$free for all Tesla vehicle owners.

No

Yes

In February $2017,$ Tesla announced it was closing its sales galleries in malls and shopping centers.

Yes

No