Product details

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Abstract

The case discusses how Tesla found itself lagging behind in some key global markets as its rivals raced ahead with new affordable Electric Vehicle (EV) models. Tesla's global market share fell to 11% in April 2021 from 29% in March 2021 as it lost ground in China, Europe, and the US where its dominance had been eroded by new competition and price hikes. In the US, Ford Motor Co.'s electric sport-utility vehicle, the Mustang Mach-E, had begun eating into Tesla's market share, while in Europe, the world's largest electric-car market, Volkswagen AG beat Tesla to become the top-selling all-electric vehicle maker in 2020. In China, Tesla faced intense competition as several local players flooded the EV space with affordably priced, high performance EVs. Though Tesla was a leader in the EV space with an 18% market share in the global EV market as of October 2020, it was slowly losing ground. The case highlights the key challenges faced by Tesla including growing competition, phasing out of the Federal tax credit on EVs; cash burnout due to heavy investments in technology and production facilities, launching affordable EV models, and maintaining profitability. It remains to be seen whether Tesla can maintain its lead in the global EV space or if will lose market share to rivals.

Teaching and learning

This item is suitable for undergraduate and postgraduate courses.

Time period

The events covered by this case took place in 2016-2021.

Geographical setting

Region:
World/global
Country:
United States

Featured company

Tesla Inc.
Employees:
10000+
Turnover:
USD 31.6 billion (Fiscal 2020)
Type:
Public company
Industry:
Automotive

Featured protagonist

  • Elon Musk (male), CEO of Tesla

About

Abstract

The case discusses how Tesla found itself lagging behind in some key global markets as its rivals raced ahead with new affordable Electric Vehicle (EV) models. Tesla's global market share fell to 11% in April 2021 from 29% in March 2021 as it lost ground in China, Europe, and the US where its dominance had been eroded by new competition and price hikes. In the US, Ford Motor Co.'s electric sport-utility vehicle, the Mustang Mach-E, had begun eating into Tesla's market share, while in Europe, the world's largest electric-car market, Volkswagen AG beat Tesla to become the top-selling all-electric vehicle maker in 2020. In China, Tesla faced intense competition as several local players flooded the EV space with affordably priced, high performance EVs. Though Tesla was a leader in the EV space with an 18% market share in the global EV market as of October 2020, it was slowly losing ground. The case highlights the key challenges faced by Tesla including growing competition, phasing out of the Federal tax credit on EVs; cash burnout due to heavy investments in technology and production facilities, launching affordable EV models, and maintaining profitability. It remains to be seen whether Tesla can maintain its lead in the global EV space or if will lose market share to rivals.

Teaching and learning

This item is suitable for undergraduate and postgraduate courses.

Settings

Time period

The events covered by this case took place in 2016-2021.

Geographical setting

Region:
World/global
Country:
United States

Featured company

Tesla Inc.
Employees:
10000+
Turnover:
USD 31.6 billion (Fiscal 2020)
Type:
Public company
Industry:
Automotive

Featured protagonist

  • Elon Musk (male), CEO of Tesla

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