Tesla Motors: A Potentially Disruptive Force in a Mature Industry

Abstract

The purpose of this paper is to analyse Tesla's strategy for ensuring own sustainable future growth, while acting as a catalyst of change in the automotive industry. The paper utilises the document analysis as a main method, with the presentation of the results in a case study format. It was realised that Tesla has managed to create a product that has a rather unique positioning in a highly competitive industry. However, Tesla was unable to capitalise on the potential demand regardless of superiority of its products, as the current market leaders have a considerably lower price and are competing with a different class of vehicles altogether. The implications for industry development are discussed in connection with competition in Hybrid Electric Vehicle and Battery Electric Vehicle categories.