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Strategic Management Capstone Comprehensive Case
Tesla Motor Inc.

Trevor McLaughlin
University of Central Oklahoma

Table of Contents
TOC o “1-3” h z u Problem Summary PAGEREF _Toc512771561 h 3

Problem Summary
Tesla Motors, Inc. is an automobile manufacturer formed in 2003 and named after Nikola Tesla. Nikola Tesla was a great inventor and is responsible for some of the positive differences technology make in daily life. Elon Musk and Tesla’s CTO, JB Straubel were the founding members. Musk with his personal fortune made from selling startups provided most of the capital. Beginning in California’s tech industry of Silicon Valley gave them access to the nations best and brightest tech and engineering employees. Their roots in Silicon valley gave them the edge to assemble a specialty team formed of members from the car industry and members from Silicon Valley. These innovative engineers decided to introduce new technology to the automobile industry and provide electric vehicles(EV) instead of internal combustion(IC) engine powered vehicles. Tesla designs, produces, and manufactures EV but, they also manufacture and design EV powertrains to sell to other EV manufacturers, Toyota and Daimler. While being headquartered in Palo Alto, California their subsidiaries are in North America, Asia, and Europe. In 2007, the company was experience delays and their capital was in a downward spiral Elon Musk took over as Chief Executive Officer(CEO). He reduced headcount and became the face of Tesla during this transition from founder to CEO. Tesla Motors, Inc. with Elon Musk leading the charge wants to become a mass producer of EV.

The American car industry is one of the largest industries in the U.S., generating

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