Please demonstrate critical thinking abilities. No fewer than 250 words for post. Do not summarize the post and/or course concept(s), but perhaps comment on concepts directly applicable to your workplace.

For this response, should outside sources be used to support the content within the postings, proper in-text citations and correctly formatted references should be prepared consistent with the APA (6th edition). The list of references should be physically positioned at the end of the postings. NOTE* please do not plagiarized.

Tesla was founded by Martin Eberhard and Marc Tarpenning in July 2003 (Kumparak, Burns, & Escher, 2015 para. 2). They were initially out to just build an all-electric car. The first Tesla automobile was a chassis designed and built by Lotus for Tesla and an all-electric drivetrain installed by Tesla called the Tesla Roadster. Now they have 3 models: Model S, Model X, and Model 3. The model S has a sub model the P85D which is one of the top 20 fastest production cars in the world. Tesla has been successful in the EV car market for the following reasons.

    1. Factor conditions: Battery technology. Tesla partnered with Panasonic to create their battery pack, but most of the technology and innovation is created at Tesla (Zach, 2015 para. 3).
    2. Demand conditions: The demand for all-electric vehicles is still relative low, but as more automakers enter the market the better the electric vehicle is accepted. The newest of Tesla’s models the Model 3 presold 150,000 units on its first night (Kumparak, Burns, & Escher, 2015 para. 34).
    3. Related and supporting industries: “Tesla unveils a new business arm in April 2014 that focuses on ending our dependence on grid power and switching instead to solar energy. The first Tesla Energy product is ‘Powerwall Home Battery’, a massive battery for storing solar energy at home” (Kumparak, Burns, & Escher, 2015 para. 27).
    4. Firm strategy, structure, and rivalry: There are not any cars currently that can compete with the Model S or Model X, but the Model 3 is a compact relatively low cost car. It’s largest current competitor is the Chevy Bolt, but Chevy was targeting 30,000 sales in it’s first year while Tesla was targeting 500,000 (Zach, 2015 para. 5).

Porter states “when the national environment pressures companies to innovate and invest, companies both gain a competitive advantage and upgrade those advantages over time” (Porter, 1990 page 80). That is exactly what Tesla has done with not only their electric cars, but now their home energy division.


Kumparak, G., Burns, M., & Escher, A. (2015, July 28). A brief history of Telsa. Tech crunch Retrieved from…

Porter, M. E. (1990, March-April). The competitive advantage of nations. Harvard business review, 68(2), 73-93.

Zach. (2015, April 29). Tesla’s competitive advantage – 5 big ones. EV obsession Retrieved from…