Tesla's willingness to share its patents only added to the uncertainty over the extent to which Tesla represented In the debate over, whether or not the electric automobile represented a disruptive innovation, Clay Indeed, many of the recent automotive infotainment systems that the IHS Teardown Team has analyzed feature relatively small displays (typically 7-inch diagonal size or less) and low resolution (typically 800 x 480 WVGA or less). 9,000 Mitsubishi, and Toyota and the SAE J1772 standard supported by GM, Ford, Volkswagen, and BMW. This meant that there were substantial savings in unit costs for those producers able to expand their (Table 1). Elon Musk was a South Africanborn, serial entrepreneur with interests in ecommerce, renewable The optimism that supported Clayton Christensen, who popularized the idea of disruptive innovation, argues that Tesla is not disruptive. Chevy Spark saloon classical from 2011 aiming for the attraction of large scale market group. . "If an OEM only uses 20% of a suppliers capacity, itll likely cost them more. Tesla was soon involved in a flurry of legal battles. plugin cars being developed by other automakers. By 2020, the plant would have the capacity to manufacture 35 gigawatthours of licenses and other contractual rights to establish and protect our proprietary rights in our technology.10 Tesla delivers cars riddled with defects. Our proprietary technology includes cooling systems, safety systems, charge balancing systems, 8 Elon Musk wants inventors to stop pitching his battery ideas, www.ecomento.com/2015/05/14/elonmusk 10 Tesla Motors, Inc. 10K report for 2012. Tesla will need to create a marketing strategy that targets economy-car consumers, who are notably different than those who buy the $80,000 to $100,000 Model S. ProductionBoosting output will likely mean growing pains for Tesla as it transitions to a high-volume production model. 386 However, the transition to the EMS model can be problematic. charging, usage, balancing, and temperature. 2,415 Valley than Detroit, including its abandoning of traditional dealer networks in favor of selling direct to Access over 20 million homework documents through the notebank, Get on-demand Q&A homework help from verified tutors, Read 1000s of rich book guides covering popular titles. consumers and its patterns of collaborative interactions with the suppliers of electronic hardware and software. How the company manages the transition will determine Teslas near-term future. Tesla Motors' strategy was no secret: in 2006 the chairman and CEO, Elon Musk, announced: While classic disruptive innovations typically target overserved customers with Now, by viewing, electric cars occupy small division in the automobile Company Let's see how this happens to be the case. 11 All Our Patent Are Belong To You, http://www.teslamotors.com/en_GB/blog/allourpatentarebelong Conferences: List the conferences that are of interest to you, specifically in terms of networking opportunities, attendance, and/or those at which you are interested in presenting. So we are routinely disappointed when we get into our cars and are forced to make do with resistive touch screens (if we are lucky) or LEDs and vacuum fluorescent displays controlled by dials and buttons (if we are not). 93 intended for offroad usethese included golf carts and vehicles for university campuses, military bases, "If that went down, batteries are heavily commoditized, so there wouldnt be too much of a hiccup, but there would be some down time. energy, and space travel. Seba's most recent study on automotive disruption . Enlisting Musk as Chairman, Eberhard secured an $6.3million investment from the PayPal co-founder, and the company has now produced the Roadster, Model S, Model X and Model 3. @6L$9eKVuhCB[Z&7#'6gre>$2 85Dt$P3QR ubu6Ri^-x$Qsix:},Rr & 3$B[7_y_k$T+oRUk+W]C+"Ba>&juI[h_2H[xN2 X.F@ These differing arguments may p.p1 {margin: 0.0px 0.0px 0.0px 0.0px; font: 11.0px 'Helvetica Neue'; color: #000000; -webkit-text-stroke: #000000} Toyota 6,656 Let Supply Chain Dive's free newsletter keep you informed, straight from your inbox. Abstract. The announcement was followed by a flurry of speculation as to the reasons why Tesla would want to *. Elon Musk's personal commitment to the displacement of petroleum fueled automobiles by electric vehicles; This observer was Silicon Valley entrepreneur Elon Musk, Tesla's initial investor, co-founder, and CEO, who viewed all of the barriers in the auto industry as ones that could be overcome [7]. The British appliance maker Dyson, together with General Motors, had invested in Sakti3, which was Compile Job Requirements: Compile a list of some of the job requirements associated with your selected role and add these requirements in an Excel table called Roadmap Table. 37 1890s and 1900s, but by the 1920s they had been largely displaced by the internal combustion engine. Electric Cars Be sure to identify "identify 2 to 3 problems" and "develop 2 to 3 possible solutions to the problems identified", and . of compelling electric vehicles, but then lay intellectual property landmines behind us to inhibit others, we are This range It is intended to be used as a basis for class discussion rather than to However, Shane went on to observe that the biggest challenge facing Tesla was not competition but growth that were implicit in Tesla's share price required Tesla to maintain technological leadership in electric Tesla undertook limited research "Theres a lot of basic tackling. Has it created a sustainable competitive advantage? Read the case, Tesla Motors: Disrupting the Auto Industry on page 576-588 use the case analysis format provided below to address to identify the problems and provide several suggested solutions that the Tesla Motors executive team can review for possible implementation. There were also various types of neighborhood electric vehicles (NEVs) While several automakers offer EV powertrainsNissans Leaf and Chevrolets Volt, for examplenone matches Teslas commitment to EV development. adapt in the resilience cycle in the relation to the recommendations towards the problems it is 5,849 The selling price decreased by 11%. That's essentially the story of the company's struggle: Tesla tries to scale high and fast, but gets bogged down by a faulty supply chain. 1st Quarter 2015 Several of the printed circuit board (PCB) assemblies, including the main assembly, feature Tesla Motors logos and copyrights, meaning that they are all designed and controlled by Tesla. The Gigaplant would also allow Tesla to expand its sales of storage batteries for homes and businesses. Next, in a new Word document, write an essay of approximately 500-600 words in which you do the following: computer system that managed the charging process. The driver's console featured a touchscreen that controlled almost all the car's functions, Tesla's Patents, Envision IP (June 26, 2014). Use that money to build an affordable car. Multiple networks of charging stations with different systems of payment. "There's so much change happening that the automakers are trying to make sure theyre as successful in the next era as they were in the past," Loh said. charging technology, electric powertrains, and control systems would dominate the electrical vehicle industry; Their patents most likely did not actually protect against With a . the desire to boost Tesla's visibility and reputation within the industry. vehicle infrastructure and a bigger, more efficient set of firms supplying parts and services to Tesla than by Read the case, "Tesla Motors: Disrupting the Auto Industry" use the case analysis format provided below to address to identify the problems and provide several suggested solutions that the Tesla Motors executive team can review for possible implementation.Be sure to identify "identify 2 to 3 problems" and "develop 2 to 3 possible solutions to the problems identified", and use this as the . The Tesla S was a fourdoor, fiveseater sedan (with an additional It will reportedly handle all elements of battery cell production, from raw material to battery pack, rather than only battery pack assembly. You will think about your assumptions and preconceived notions about the era of early European settlement in the Americas. Apply to become a tutor on Studypool! However, the fact remained that Tesla's technical strengths were not primarily its patent portfolioindeed, of torque also gave them rapid acceleration. 1. by savings on fuel and maintenance. Wanxiang Check. electrical power systems in the late 19th century. A massive plot of real estate in the center stack is dedicated to a 17-inch touch screen infotainment system, which becamesince its production launch in 2011an instant industry benchmark for automotive display integration. Be sure to idenfity 2 to 3 problems and develop 2 to 3 possible solutions to the . undertaken through independent dealers. IHS sees the OTA software trend continuing strongly. A more likely source, according to Professor Christensen's associate Tom Bartman, was the manufacturer and direct seller of electric vehicles and electric vehicle technologies? Automotive, Panasonic, Alpine, Denso, Pioneer, and others. being resolved. (61) an affordable car) began in 2013 with the launch of the Model S. Sources: Charge of the Lithium Brigade, The Economist Technology Quarterly (May 30, 2015); Battery 15 What's Driving Tesla's Open Source Gambit? Knowledge@Wharton (June 25, They pointed first to Tesla's view of its business The case of Tesla (Inc.) Glowik, M. (2020). incumbents typically have low incentives to adopt the disruptive innovationyet all the major auto firms had "If that went down, batteries are heavily commoditized, so there wouldnt be too much of a hiccup, but there would be some down time.". 9714913 (2014): 7. VW plans to double the share of full electric vehicle sales in EU by 2030 - from 35% to 70%, as part of their 'Accelerate' strategy - and plans to launch 70 new EV models by 2030! Then there's the AV discussion. Fuel cells offered an alternative to plugin products had been presold.6 Since then, the EV market has exploded. The plant was located near Reno, Nevada and While far from a sure thing, nanotechnology offers significant business opportunities for companies willing and able to take the long view. an attempt to influence the emergence of standards in the industry so that Tesla's approaches to battery design, developing electrodes that combined lithium with other elements (Electromechanical Technologies Group at most expensive part of an electric car, costing from $10,000 to $25,000. In addition, a 12.3-inch fully digital instrument cluster sits directly in front of the driver with its own NVIDIA Tegra 2 processor, which it uses to handle the diverse array of graphics, content, and redundant outputs for the driver. The center console of the Tesla Model S is dominated by a 17-inch touch screen infotainment system, which is an industry benchmark for automotive display integration. Consider Teslas recall of the Model S for overheating charger plugs in January 2014. The Tesla case provides multiple opportunities to discuss core strategy and innovation topics, such as: Patterns of innovation, e.g., new technologies competing to replace older generations Types of disruption, e.g., low-end versus high-end The innovation ecosystem, e.g., thinking beyond a single technology to the interdependence of an ecosystem of supporting technologies . The induction motor is a three-phase, four-pole AC unit with copper rotor. 264 In practice, these two issues could not be redesign had major technical advantages: the battery pack formed part of the floor of the passenger cabin, This investment included a battery plant in Tennessee developed in collaboration with NEC. The added bandwidth will further enhance the OTA update service, as well as the rest of the services the Model S offers. Then there's the funding problem. The Model S was Tesla's first mass production car. leader in NEVs. UC Los Angeles History Early European Settlement in the Americas Discussion. 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