1. Tesla has indeed been doing pretty well since the time of the case (2013). Their Model S sedan has been selling well and they have expanded their lineup with an SUV (Model X). In only a few years, they will also be introducing a more affordable, high-volume car (Model 3).

What drives this success from an internal perspective – explain what capabilities Tesla possesses and whether they pass the 4 requirements, suggesting core competencies and competitive advantage.

Part of that success, however, may be due to relatively benign competition – beyond mostly cheaper and smaller hybrids/electric vehicles and with the exception of Henrik Fisker’s KARMA that quickly fizzled, nobody is currently making an all-electric luxury sedan. But that is about to change. BMW recently introduced the i3 and i8 and is likely working on a sedan while Porsche promised an all-electric sedan by the latest 2020 (see article, http://blog.caranddriver.com/its-on-like-elon-porsches-mission-e-electric-sedan-headed-to-production/).

Briefly outline what resources and capabilities these much larger automotive firms have that Tesla may be lacking. Note: both parts of this question will require a little bit of outside research.

1. 2. Tesla is pursuing a merger with another Elon Musk firm, SolarCity. Explain why you think Tesla is pursuing this merger and how it plays in with Tesla’s overall strategy.

Total 3 pages.
A. Typed on standard sized (8.5? x 11?) paper with one inch margins and double spaced throughout. The size of the type should be 12 points. Page numbers should be on every page of text and the text should be left-justified. Include a title page and please do not use plastic covers or folders.
B. The Wikipedia website should not be relied upon as a source of research information for this class for several reasons. First, the foundation for your research should be high quality reference materials such as the traditional business press and academic journals. Second, Wikipedia uses an encyclopedia format, and the limitation of all encyclopedias is that content is based on second-hand summaries of other research materials. You should consult articles, books, or other sources directly for a college-level research paper.

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