Product details

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Abstract

Tesla, Inc (Tesla), an American automotive and clean energy company based in Austin, Texas, designed and manufactured electric vehicles (EV), battery energy storage, solar panels, and solar roof tiles. With the realities of climate changes setting in, it was evident that the use of fossil fuel had to be reduced for a sustainable future. Tesla's mission was to accelerate the world's transition to sustainable energy through increasingly affordable EVs and energy products. Tesla, which had been selling EVs since 2003, diversified its business to produce batteries in 2015. It used Gigafactories for large scale battery production and developed a new battery chemistry eliminating cobalt, thereby reducing cost and harmful emissions. It partnered with suppliers with net zero operations and blockchain technology for responsible mining thereby aligning its operations to the UN Sustainable Development Goals. Nevertheless, the batteries spewed a lot of carbon dioxide in the atmosphere during the mineral extraction process. Gigafactories consumed large amounts of water leading to water shortage. The result was low ESG ratings, and the way out was battery recycling. Would Tesla's low-cost batteries enable a rapid switch to EVs and decarbonise the economy? Would the batteries be the most transformative part of Elon Musk's empire?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2024.

Geographical setting

Region:
Americas
Country:
United States

Featured company

Tesla, Inc
Employees:
10000+
Type:
Public company
Industry:
Automotive, renewable energy

About

Abstract

Tesla, Inc (Tesla), an American automotive and clean energy company based in Austin, Texas, designed and manufactured electric vehicles (EV), battery energy storage, solar panels, and solar roof tiles. With the realities of climate changes setting in, it was evident that the use of fossil fuel had to be reduced for a sustainable future. Tesla's mission was to accelerate the world's transition to sustainable energy through increasingly affordable EVs and energy products. Tesla, which had been selling EVs since 2003, diversified its business to produce batteries in 2015. It used Gigafactories for large scale battery production and developed a new battery chemistry eliminating cobalt, thereby reducing cost and harmful emissions. It partnered with suppliers with net zero operations and blockchain technology for responsible mining thereby aligning its operations to the UN Sustainable Development Goals. Nevertheless, the batteries spewed a lot of carbon dioxide in the atmosphere during the mineral extraction process. Gigafactories consumed large amounts of water leading to water shortage. The result was low ESG ratings, and the way out was battery recycling. Would Tesla's low-cost batteries enable a rapid switch to EVs and decarbonise the economy? Would the batteries be the most transformative part of Elon Musk's empire?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2024.

Geographical setting

Region:
Americas
Country:
United States

Featured company

Tesla, Inc
Employees:
10000+
Type:
Public company
Industry:
Automotive, renewable energy

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