Senate Hall Academic Publishing

Journal of Strategic Management

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ISSN: 1649-3877

Listed by: Cabells and EBSCO

Frequency: 1 online Volume per year


(TEACHING NOTE) The Emperor’s New Clothes: A Framework for Market-Based Management at Tesla Motors

JSME Vol 8: Issue 3, 2012

Author(s): Myles E. Mangram (SMC University, Switzerland)


The electric vehicle industry is viewed by many as a vital component to reducing global reliance on dwindling fossil fuels and mitigating harmful environmental pollutants. Tesla Motors (“Tesla”) was the first automaker to manufacture and sell long-range, highway-capable electric vehicles in serial production, and is viewed by many as central to the overall success of the industry.

In spite of its importance, outside of intense technological scrutiny by industry pundits and analysts, very little has been written about the managerial and economic aspects of Tesla and related challenges confronting the company. In response, this case study analysis suggests that these challenges can be overcome by implementing a strategic Market-Based Management framework and interrelated internal-markets approach to its current operations.

Main Case - Questions:

Key Challenge #1 – What can Tesla do in order to generate consistent short-term and long-term profits?

Key Challenge #2 – What strategies should Tesla implement in order to mitigate the significant costs associated with the global expansion of its sales/distribution and marketing operations?

Key Challenge #3 – How can Tesla develop a more efficient and lower-cost manufacturing system?

Key Challenge #4 – As a publicly traded company, what can Tesla do to better manage its ‘short-term earnings’ pressures in line with its long-term value maximization goals?

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