A Study of Tesla’s Business Strategy

Abstract

The purpose of this study is to analyze various aspects of the business strategy of Tesla, a U.S. company specializing in complete electric vehicles, and to clarify its competitive advantage. In this study, we will clarify how the company has risen to the top of the world, albeit in a specific segment, in such a short period of time, and how this competitive advantage has been achieved.

The following three points are conclusions. First, Tesla is very good at defining its business domain and then redefining it in a short period of time from there. Secondly, it is a super speedy management. And thirdly, although there is no denying that there is a strong element of genus, Tesla has been able to take full advantage of the corporate value of SpaceX, which is owned by Mr. Musk, the founder of the company. The maverick statements of Mr. Musk and his unique way of conducting business make Tesla a company that stands out in some ways. However, we would like to emphasize that the corporate behavior in pursuit of its business strategy is based on economic rationality, as evidenced by its excellent entry process and its sincere approach to engineering.