1. Within a few short months between the summer of 2019 and early 2020, Tesla added more than $100
billion to its market cap. Do you believe that Tesla’s stock market valuation making it the second most
valuable car company globally is rational or do you think it is a hyped-up overvaluation?
2. What business model is Tesla pursuing? How is Tesla’s business model different from traditional car
3. Historically, the automotive industry in the United States has been identified by high barriers to entry.
How was Tesla able to enter the automotive mass-market industry?
4. What type of innovation strategy is Tesla pursuing? Tie your explanation to Elon Musk’s “Master Plan,
5. In which stage of the industry life cycle is the electric vehicle industry? What core competencies are
the most important at this stage of the industry life cycle? What are the strategic implications for the
future development of this industry?
6. Apply the Crossing-the-Chasm framework to explain some of the challenges Tesla is facing and
provide some recommendations on how to overcome them.
7. Evaluate Elon Musk’s “Master Plan, Part 2” and assess if Tesla can gain and sustain a competitive
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