9-724-446

REV: MARCH 19, 2024

FELIX OBERHOLZER-GEE

KATE STOPPIELLO

Tesla Motors in 2024--Turbulence Ahead?

“Some people’s trash is other people’s treasure. The Cybertruck gets people talking about Tesla as a
company.” 1

— Franz von Holzhausen, Tesla Motors’ chief designer

“Cancelling the Cybertruck would probably be positive for shares.” 2

— Philippe Houchois, analyst at Jeffries

On November 30, 2023, the wait was finally over. Tesla Motors, the preeminent maker of electric
vehicles (EVs), launched its eagerly anticipated Cybertruck. Billed as the “best product ever,” Tesla
CEO Elon Musk was visibly excited about the sci-fi-inspired vehicle with its imposing angular design:
“We have a car here that experts said was impossible, that experts said would never be made... I think
it’s the most unique thing on the road. Finally, the future will look like the future.” 3

The good news arrived as Tesla looked back at a turbulent number of years. The company had lost
70% of its value in 2022 amid investor concerns about increasing competition and weaker-than-
expected demand for EVs (see Exhibit 1). In 2023, Tesla had to slash prices to stimulate driver interest.
It offered its Model X, a luxury SUV, at a stunning 34% discount. The price of Tesla’s Model S dropped
by 28.5%. 4 Tesla enthusiasts hoped the Cybertruck would renew admiration for the brand and assure
investors that the company retained its ability to deliver cutting-edge products.

Despite these recent challenges, Tesla remained in an enviable market position. Over its 21 years in
business, the company had become nearly synonymous with EVs. With more than 7% global market
share, its Model Y crossover continued to be the most popular EV available. Only China’s BYD neared
Tesla’s EV market share (see Exhibit 2). The company also continued to expand its manufacturing
footprint, opening Gigafactories in Shanghai in 2019 and in Austin and Berlin in 2022. 5 In 2023, its share
price had more than doubled.

As Musk contemplated his next strategic moves, the fierce competition in EVs stood out as perhaps
the most serious concern. In 2023, EV makers had introduced 14 new models in the U.S. and this
number was expected to more than double in the next two years (see Exhibit 3). For the first time,
Americans would be able to choose between nearly every type of car and truck, ranging from entry-

Professors Eric Van den Steen, Ramon Casadesus-Masanell, and Felix Oberholzer-Gee and Research Associate Karen Elterman prepared the
original version of this case, “Tesla Motors in 2023: Competition Revs Up,” HBS No. 723-410. This version was prepared by Professor Felix
Oberholzer-Gee and Research Associate Kate Stoppiello. This case was developed from published sources. Funding for the development of this
case was provided by Harvard Business School and not by the company. HBS cases are developed solely as the basis for class discussion. Cases
are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management.

Copyright © 2024 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685,
write Harvard Business School Publishing, Boston, MA 02163, or go to www.hbsp.harvard.edu. This publication may not be digitized, photocopied,
or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School.

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
 724-446 Tesla Motors in 2024--Turbulence Ahead?

level SUVs (e.g., Volvo EX30, $35,000) to Porsche’s luxury vehicles. 6 Similarly, dozens of new models
had become available in Europe, including BYD’s Dolphin ($32,000), an early Chinese entrant. 7
Competition was toughest in China, where close to 300 companies produced EVs. 8 Even smartphone
maker Xiaomi had entered the fray. 9 How should Tesla react to the flood of competitors and models?
Was the company’s rumored Model 2, an entry-level EV with a price target of $25,000, an appropriate
response to the competitive onslaught? Much depended on Musk and his executive team getting this
decision right.

The Automotive Industry

The global car industry was a key engine of economic activity, generating $2.6 trillion in sales and
employing over 80 million people worldwide. 10 Automotive aftermarket sales added another $1 trillion
annually. Consumer spending on automobiles and related services accounted for a substantial fraction
of household budgets—15% in the United States. 11 Cars were typically used to make short trips. In
most countries, the average one-way commute to work was less than 15 miles. 12

Substantial per-unit and start-up costs, combined with the market power of established producers,
made it difficult to join the industry. In the U.S., the four largest producers (General Motors, Toyota,
Ford and Stellantis) made up 58% of the market 13 (down from 98% in 1969). 14 The share of the top four
stood at 62% in Europe (Volkswagen, Stellantis, Renault, Hyundai) 15 and at 34% in China (BYD,
Volkswagen, Toyota and Honda). 16 But even in the United States, one of the most concentrated of the
larger markets, the market power of the leading manufacturers had declined over time. 17

Design and Manufacturing

A conventional car consisted of thousands of parts, which were procured from more than a
thousand suppliers. 18 Four components were critical: the chassis (the bottom frame of the car), the
body, the engine, and the transmission, which was responsible for moving power from the engine to
the wheels. Conventional cars used an internal combustion engine fueled by gasoline or diesel. Cars
also required several other complex systems, including fuel storage and injection as well as cooling,
making them a challenging product to manufacture. Designing a completely new car took up to five
years and cost as much as $6 billion for a global model. Simpler redesigns were often completed in less
than a year. 19

The production of cars had evolved significantly since its beginning in the late 1800s. The advent of
production lines and automation in particular—pioneered by Henry Ford--greatly increased the
efficiency with which automobiles were produced. Many of Ford’s processes were still in practice in
2024. Modern car production took place in huge plants that covered millions of square feet and
employed about 1,500 workers on a typical shift. Manufacturing costs made up 80% of a car’s final
selling price. Automobile production exhibited substantial learning curves, estimated to be about
95%. a, 20

Marketing, Distribution, and Service

Carmakers relied heavily on advertising to promote their products. In the U.S., the automobile
industry accounted for 5% of ad spending, trailing only the retail (13.6%), media (12.2%), and financial
services (9.9%) industries. 21 Cars were traditionally sold through dealerships that enjoyed the exclusive

a A 95% learning curve meant that cost decreased by 5% every time cumulative production doubled. The 95% learning curve for
car manufacturing applied to the cost of goods sold. Learning curves for SG&A or R&D were not public information.

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
 Tesla Motors in 2024--Turbulence Ahead? 724-446

representation of a brand in a local sales territory. Dealers bought vehicles directly from their
manufacturer. They also offered financing, maintenance, and repair services. 22 The sale of new vehicles
(including financing and insurance) made up more than 50% of dealer revenue but only a quarter of
gross profit. Used vehicles (33% of sales) were responsible for another quarter of gross profit. Parts and
repair services (12% of sales) were most profitable by far, generating nearly 50% of dealer income.
Customers often returned to the same dealership where they had purchased their vehicle for warranty
and out-of-pocket services. 23 80% of significant repairs were related to the car’s powertrain. b, 24 (See
Exhibit 4 for the cost structure of U.S. dealers.) 25

Over time, e-commerce had gained in importance. For example, 23% of U.S. car shoppers said they
intended to purchase their next vehicle either partially or fully virtually. 26 But actual online sales were
meagre, 2% in China and less than 1% in the U.S. and in Europe. 27

Electric Cars
Electric cars were common in the 19th century when they made up about 40% of the (admittedly
small) fleet. In fact, the very first speeding infraction was committed by an EV driver who raced down
Lexington Street in Manhattan at 12 miles per hour, a violation that landed him in prison. 28 The sale of
EVs in the U.S. peaked in 1912. The subsequent mass production of Ford’s Model T and Charles
Kettering’s invention of the electric starter, which eliminated the hand crank, rendered EVs largely
uncompetitive, however. By the end of the decade, Ford’s Model T Touring cost $525 ($8,244 today),
while a typical EV sold for $1,750. 29

It wasn’t until the 21st century when mass-produced EVs gained back significant market share. 30
Higher gasoline prices, improved battery technology and concerns about climate change all helped lift
interest in the technology. In early 2024, the global share of EVs stood at 18%, up from 4% in 2020.

There were three main types of EVs: battery electric vehicles (BEVs), plug-in hybrids (PHEV) and
fuel cell EVs (FCEVs). BEVs were powered by a battery that could be recharged. Most BEVs traveled
at least 100 miles on a single charge, and many newer models had a range of 200-300 miles. PHEVs
added a smaller internal combustion engine to the BEV architecture that recharged the battery to
increase the vehicle’s driving range. FCEVs used an electrochemical process to convert hydrogen into
electricity to power the motor. FCEVs were fueled with compressed hydrogen. 31

In some respects, EVs were simpler than gasoline-powered cars. Most notably, BEVs had a far
simpler powertrain with only about 20 moving parts compared to 2,000 parts in a car with an internal
combustion (IC) engine. 32 IC engines had a limited range of speed, and they relied on complex multi-
speed transmissions to translate the speed of the engine into an appropriate speed for the wheels. By
contrast, EVs used single-speed transmissions to regulate the vehicle’s electric motor. The motors were
fairly conventional and had been widely used for more than a century.

Batteries were among the most complex components of EVs. A typical battery pack consisted of
thousands of cylindrical cells, each similar to a consumer-type AA battery. Because of the pack’s large
size and heavy weight, it was placed under the floor inside the car’s chassis, which freed up space and
improved the handing of the vehicle. 33 The most common type of batteries used in EVs were lithium-
ion batteries, the same kind that was used in consumer electronics. Lithium-ion batteries featured a

b The powertrain was the collection of all components and systems that generated power and made the car move.

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
 724-446 Tesla Motors in 2024--Turbulence Ahead?

high power-to-weight ratio, high energy efficiency, the ability to maintain an optimum operating
temperature, and low self-discharge. 34

Batteries, at about 40% of overall cost easily the most expensive component of any EV, posed not
only significant technical challenges. Battery production also raised thorny environmental and social
issues, which threatened to offset some of the benefits of EVs. Early generations of batteries contained
cobalt, a rare mineral mostly mined in the Democratic Republic of Congo under hazardous working
conditions involving child labor. The mining and processing of cobalt also emitted substantial amounts
of greenhouse gases and other harmful pollution. 35

Over time, battery manufacturers replaced cobalt with nickel. By 2024, half of Tesla’s EVs featured
cobalt-free batteries. But the mining of nickel—Indonesia was by far the largest producer—led to large-
scale rainforest clearing that caused significant greenhouse gas emissions. Confronted with this “Nickel
Pickle,” EV companies conceded that their production caused more emissions compared to the
production of conventional cars. However, proponents pointed out that it took less than two years of
driving to swing the overall environmental balance in favor of EVs. 36

Despite these concerns, governments around the world supported the adoption of EVs, hoping to
slow climate change. 37 In 2022, the U.S. Congress passed legislation that included a $7,500 subsidy for
moderately priced EVs that were assembled in North America. 38 China, an early supporter of EVs, had
reduced subsidies over time, providing RMB 12,000 ($1,700) for fully electric vehicles. 39 Purchase
subsidies in the European Union varied from a generous €7,000 in France to €0 in Belgium and
Denmark. 40

Enter Tesla
Martin Eberhard and Marc Tarpenning, builders of the first-ever e-book reader in the late 1990s,
founded Tesla Motors in 2003. They named the company after Nikola Tesla, one of the inventors of the
electric AC induction motor. Elon Musk met Eberhard and Tarpenning at a Mars Society talk and led
the initial round of funding in 2004. Musk then joined Tesla as its second chairman of the board soon
afterwards.

Musk, at the time relatively unknown outside of Silicon Valley, quickly became the face of Tesla.
Born in South Africa, with an engineering and an economics degree from the University of
Pennsylvania, he sold his first start-up, Zip2, for more than $300 million to Altavista. 41 He then co-
founded PayPal and sold the company in 2002 to eBay for $1.5 billion. The sale gave Musk the capital
to pursue his dreams. Over the next years, he started the space transportation company SpaceX and
became the largest shareholder and chairman of SolarCity. In 2007, when Tesla faced significant
product delays and dwindling capital, Musk took over as the company’s fourth CEO.

Models
Roadster
Tesla’s first car, the Roadster, went into production in 2008. The Roadster, priced at $109,000, was
the first-ever high-end EV. (See Exhibit 5a for photos of all models and 5b for specifications). The
chassis for the car was developed in partnership with Lotus. The Roadster shared some features with
the famed Lotus Elise. 42 In company tests, the car reached a 245-mile range on a single charge, which
was unprecedented for EVs at the time. Its performance was comparable to gas-powered sports cars,

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
 Tesla Motors in 2024--Turbulence Ahead? 724-446

with an acceleration of 0 to 60 mph in less than 4 seconds. 43 The car received glowing coverage: “a
head-turner,” “a jaw-dropper,” “the future of the automobile,” and “profoundly humbling to just about
any rumbling Ferrari or Porsche that makes the mistake of pulling up next to a Roadster at a
stoplight.” 44 As agreed with Lotus, Tesla produced 2,500 Roadsters. 45 In 2017, the company announced
a new Roadster, promising an acceleration of 0 to 60 mph in 1.9 seconds, a top speed of over 250 mph,
and a 620-mile range. 46 Delayed year after year, the New Roadster was now expected to be introduced
in 2026 at a starting price of $200,000. 47

Model S Sedan
The Model S, Tesla’s first mass-produced car, was designed as a luxurious electric vehicle to rival
the Audi A6 and BMW 5 series. It stood out with its 17-inch touchscreen monitor and its ability to
receive over-the-air software updates via the car’s integrated 3G connection. 48 Reaching 0 to 60 mph in
less than 6 seconds, it outpaced the BMW 5 by 10%. Launched in June 2012 and priced at $57,400, the
car garnered universal acclaim, earning the prestigious title of 2013 Car of the Year. The Model S was
the best-selling plug-in EV globally in 2015 and 2016. 49

Tesla developed the Model S on its own, with a budget of approximately $0.5 billion. 50 The
powertrain was an enhanced variant of the Roadster’s. The Tesla S utilized a rear-wheel drive, similar
to BMW and Mercedes, but avoided the additional expenses since the compact electric motor could be
placed next to the rear axis. For the battery, Tesla employed an upgraded version of the technology it
had created for the Roadster.

Starting with the Model S, Tesla brought the assembly of its cars in-house at a former GM factory
in Fremont, California. Tesla had acquired the plant for a fraction of what a factory would typically
cost. 51 With the Model S, Tesla started producing a significant percentage of its parts in its own
factories, manufacturing 90% of the plastic parts unique to the Model S using its injection molding
equipment and building the entire powertrain itself. 52 Tesla’s choice to manufacture parts internally
was motivated in part by the numerous design revisions during the initial production. Many suppliers
were unwilling to relocate factories to Fremont given the small number of Model S vehicles being
made. 53

Model X SUV
In 2012, Tesla unveiled the Model X, a crossover SUV with distinctive features, including wing
doors and all-wheel drive with dual electric motors. 54 Priced at $130,000, the Model X was the world’s
first luxury electric SUV. It used the same powertrain as the Model S sedan. The Model X suffered from
significant quality problems. Consumer Reports ranked it as one of the 10 least dependable vehicles. 55

Model 3 Sedan
In a 2006 post titled “The Secret Tesla Motors Master Plan (just between you and me),” Musk had
laid out his plans to offer ever more affordable cars:

Our long term plan is to build a wide range of models, including affordably priced
family cars. This is because the overarching purpose of Tesla Motors (and the reason I am
funding the company) is to help expedite the move from a mine-and-burn hydrocarbon
economy towards a solar electric economy, which I believe to be the primary, but not
exclusive, sustainable solution. In short, the master plan is:

1. Build sports car

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
 724-446 Tesla Motors in 2024--Turbulence Ahead?

2. Use that money to build an affordable car

3. Use that money to build an even more affordable car

4. While doing above, also provide zero emission electric power generation options

Don’t tell anyone. 56

In March 2016, Musk unveiled this “even more affordable car,” the Model 3, a smaller version of
the Model S. Within a week, more than 200,000 people deposited the $1,000 to reserve a car. The first
Model 3s were delivered in mid-2017. 57

Model Y Crossover SUV

In 2019, Tesla announced its fifth vehicle, the Model Y, a small SUV with 7 seats and a 300-mile
range. Tesla began delivery in March 2020, earlier than the originally anticipated goal. Only one year
later, the company started producing the car in its new Gigafactory in Shanghai. The Model Y shared
75% of its parts with the Model 3, but it differed in that it had a full hatch door, extra headroom, and
an optional third row. (See Exhibit 6 for Tesla’s deliveries and Exhibit 7 for estimated revenue and cost
structures.)

‘Full Self-Driving’ and Autonomous Vehicle Plans

Over time, Tesla introduced several self-driving features to its cars via over-the-air software
updates. Most notably, a select group of drivers gained access to a beta version of a “Full Self-Driving”
(FSD) mode in late 2020. 58 The mode included “Autosteer,” a feature that piloted the car within marked
lanes on highways and even on city streets; “Traffic and Stop Sign Control,” which slowed the car to a
halt at stop signs and traffic lights; and “Autopark,” a self-parking system. With FSD, Tesla claimed,
“Your vehicle will be able to drive itself almost anywhere with minimal driver intervention and will
continuously improve.” 59

By 2023, close to 300,000 drivers had bought FSD at a price of up to $15,000. 60 While the technology
often worked remarkably well, drivers still needed to intervene regularly, correcting at times serious
mistakes. 61 The National Highway Traffic Safety Administration (NHTSA) launched multiple
investigations following 35 crashes in which Teslas that were suspected of operating FSD hit parked
emergency vehicles, motorcyclists, or tractor trailers that crossed in the vehicles’ paths, causing 17
deaths.

“Humans are poor at monitoring automated systems and intervening when something goes awry,”
said Donald Slavik, a lawyer for plaintiffs in three lawsuits against Tesla over FSD. “That’s why the
human factors studies have shown a significant delayed response under those conditions.” 62 Missy
Cummings, Professor of engineering and computing at George Mason University, saw monitoring
hands on the steering wheel, the technology used by Tesla, as insufficient to ensure a driver’s attention:
“It’s a poor measure,” she said. 63

Tesla was not the only company to stumble in the race towards fully autonomous vehicles (AVs).
Cruise, a GM venture, grounded its entire fleet following a fatal accident in San Francisco, in which a
woman was first struck by a hit-and-run human driver whose vehicle threw her into the path of the
driverless car. Despite an aggressive braking maneuver, the Cruise car struck the pedestrian, ran her
over, and dragged her an additional 20 feet as it pulled to the curb and stopped on top of her. In
response, California regulators withdrew Cruise’s license to operate AVs, CEO Kyle Vogt resigned,
and Cruise laid off almost a quarter of its staff. 64 Some observers considered Cruise less safety oriented

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
 Tesla Motors in 2024--Turbulence Ahead? 724-446

compared to other AV companies like Waymo (spun out from Google), Amazon-owned Zoox, and
Uber (in collaboration with Hyundai), all of which had Level 4 autonomous robotaxi services in a select
number of U.S. cities. c Professor Cummings said,

[Cruise executives] were the bull in a china shop. They just kept charging ahead. When
we sat around and discussed who was going to have the worst accident in that crowd,
everyone knew it was going to be Cruise. 65

Cruise was not the only company pulling back from AV investments. Ford shut down its own effort,
Argo AI, writing off the $2.7 billion it had invested. Tesla’s robotaxi fleet, which Musk had promised
for 2020, was nowhere to be seen. 66

While a future that offered Level 4 autonomous driving seemed distant, Level 2 driver assistance
systems had become commonplace by 2024. In California and Nevada, Mercedes was first to offer Level
3 autonomous driving on divided highways that were mapped in high definition. In a review of BMW,
Ford, GM, and Mercedes systems, Tim Stevens observed:

Tesla is the only manufacturer that does not offer some aspect of hands-off highway
driving, and FSD is the only system here that does not restrict its usage. There’s no
geofencing or other policing. You can use FSD on any road you like. I found FSD to be
frequently confused on urban and rural streets, often slowing down excessively ahead of
curves and behaving erratically through intersections, especially on roundabouts. I often
needed to take manual control in these situations. Overriding Tesla’s Autosteer
functionality requires a firm grip and a sharp turn of the wheel. This is unnerving for the
driver and uncomfortable for the passengers. On the highway, things are much better. 67

Expanding Production
Assembly Plants
By 2024, Tesla operated close to 20 facilities in 5 countries. Assembly plants in Fremont (CA) and
Austin (TX) supplied the U.S. market. A factory in Shanghai produced models 3 and Y. 68 The company
also opened a Gigafactory near Berlin, Germany, to assemble Model Y. Thanks to the added capacity,
Tesla was able to produce 1.8 million vehicles in 2023, up 31% from a year earlier and consistent with
overall market growth.

Batteries
For its early models, Tesla collaborated with Panasonic to modify commodity lithium-ion batteries
for car usage. The two companies paid particular attention to safety and the risk of overheating. Tesla
designed a liquid cooling system that kept the batteries at their optimal temperature.

Over time, Tesla and Panasonic shifted from batteries with a high number of low-capacity cells
(such as the 1865 types) to larger cell formats that required a smaller number of cells per pack. Tesla
also expanded its network of suppliers to include LG and CATL. 69 To push innovation in battery
technology and master the exceedingly difficult manufacturing process, Tesla built some of its own

c Levels of autonomous driving ranged from Level 0, where humans were fully responsible for driving, to Level 5, where vehicles
were entirely self-driving. Level 3 permitted conditional automation, allowing drivers to disengage under specific circumstances.
Level 4 offered high automation within predefined areas, and Level 5 promised full autonomy in any situation.

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
 724-446 Tesla Motors in 2024--Turbulence Ahead?

capacity, first at a test site in Fremont and subsequently at Gigafactories in Nevada, where it produced
2170 cells in collaboration with Panasonic, and Texas (4680 cells). Tesla failed in early efforts to produce
battery cells in Berlin. 70 According to a 2020 price survey, Tesla’s battery costs were about $115/kWh,
while the average price of lithium-ion batteries in the EV industry more broadly was about
$137/kWh. 71

Marketing and Distribution

Tesla, beginning with its Model S, stressed the speed, comfort, and excellent maneuverability of its
vehicles. Tesla’s marketing also highlighted the possible cost savings from using electricity instead of
gasoline as well as the decreased need for service and repairs. 72 While estimates varied widely, the
total cost of ownership of the Model S, for instance, seemed similar to that of the BMW 5-series, with a
higher initial price but lower operating and maintenance cost. 73 Unlike traditional automobile
manufacturers that utilized dealer networks for sales and service, Tesla structured its service
operations separately from its sales channels. Despite a surprisingly high number of complaints
regarding poor build quality of its models, Tesla ranked at the top among auto brands in customer
satisfaction, surpassing Land Rover and Mazda. Tesla’s Model 3 was rated as the top car,
outperforming Volvo’s XC40. 74

Rather than having independent dealerships like other auto makers, Tesla had a network of
company-owned stores with salespeople who were paid a salary instead of being paid commissions on
sales. Musk explained:

Existing franchise dealers have a fundamental conflict of interest [as it is] impossible for
them to explain the advantages of going electric without simultaneously undermining
their traditional business. 75

This approach put Tesla in conflict with existing dealers and even some state laws that required car
companies to sell through independent dealerships recognized by the dealership association. In some
of these states, Tesla was able to sell online from other states. 76 Not everyone was convinced that
traditional dealers were a relic of the past. EV start-up Fisker moved from selling directly to consumers
online and in company stores to signing up traditional dealers. “Between the real estate, salaries and
the financial burden of carrying unsold vehicles, [selling direct] cost Fisker thousands of dollars a
vehicle,” said CEO Henrik Fisker. “I saw that number, I realized, shoot, we can actually afford to give
somebody else a margin and take care of all that.” 77

Market Outlook
In 2023, global annual sales of EVs topped an estimated 14 million vehicles. 78 (See Exhibit 8 for the
best-selling plug-in models in 2023.) That year, EVs (including plug-in hybrids) made up 16% of total
passenger vehicle sales, up from 1.3% in 2017. 79 Between 2023 and 2030, Deloitte predicted a compound
annual growth rate of 29% in overall EV sales. By 2030, the consultancy said, global EV sales would
reach 31.1 million units—about one third of the total market for new cars sold. 80 Some observers
expected the transition to take place much faster.

China was by far the largest market for EVs. Sales increased by 34% in 2023 to reach more than 8
million cars. 81 Deloitte forecast that in 2030, China would represent 49% of the global EV market,
compared to 27% for Europe and 14% for the U.S. 82 EVs were expected to make up 68% of new car
sales in China by 2030, compared to 42% in Europe and 27% in the U.S. 83

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
 Tesla Motors in 2024--Turbulence Ahead? 724-446

Growth expectations played a major role in car manufacturers’ commitments to the production of
EVs. When the transition to EVs slowed in the U.S. in late 2023—annual growth rates dropped from
74% in October 2022 to 42% a year later, and it took dealerships three weeks longer to sell an EV
compared to a gas-powered vehicle at the end of 2023 84—GM scrapped an earlier goal to produce
400,000 EVs through mid-2024, and it delayed the opening of an electric truck factory, reallocating the
capital to a large stock buyback instead. 85 Ford and Honda scaled back their ambitions as well. 86 Other
groups, however, remained steadfast in their commitment to EVs. “We are not scaling back plans for
EVs in the U.S. market,” said Reinhard Fischer, head of strategy at VW Group of America. 87 The
company planned to invest $200 billion to make every fifth vehicle it sold electric by 2025.
Volkswagen’s plans included the launch of an EV priced at less than $35,000.

Battery production grew along with market expectations. GM, partnering with LG, opened a new
battery factory in Ohio and was developing two more, in Tennessee and Michigan. Panasonic had plans
to build a new factory in Kansas to produce 4680 cells. 88 Most major car manufacturers had
multibillion-dollar battery-factory projects in progress.

Headwinds and Opportunities

By 2024, Tesla faced a radically altered competitive environment. While the company was profitable
(see Exhibits 9a and 9b)—it achieved a ROIC of 19.8%, which compared favorably to its cost of capital
of 15.2% and the returns of its major competitors that hovered around 4%--Tesla’s market share and its
margins had begun to slide (see Exhibit 10), highlighting the company’s need to be clear about where
and how it wanted to compete. Tesla’s decisions were all the more challenging because the market for
electric vehicles remained unsettled in important ways. Three concerns seemed particularly important:

1. The battery of the future

Battery technology and the typical range of EVs continued to develop at a fast pace. Lucid Motors,
a U.S. manufacturer, offered the leading model in 2024, the Lucid Air with a range of 520 miles. CATL
had unveiled a “condensed” battery type with double the energy density of Tesla’s 4680 cells,
promising a 600-mile range. 89 Furious competition in range aside, battery technology itself appeared
to shift as sodium-ion batteries emerged as an alternative to lithium-ion. JAC Yiwei, a Chinese brand
owned by Volkswagen, was first to mass-produce an EV with a sodium-ion battery. 90 These batteries
had lower energy density, resulting in bigger and heavier packs, but they were about 25% less
expensive to produce and performed better in cold weather. Unlike lithium, sodium was not a rare
mineral. In early 2024, the sodium-ion battery sector was dominated by Chinese business groups, with
CATL-Chery and BYD both announcing 2024 models powered by these batteries. 91

A potential shift to solid-state battery technology was an even more profound development. Solid-
state batteries offered several key advantages, including enhanced safety due to the absence of
flammable liquid electrolytes, higher energy density for increased range, faster charging capabilities,
and longer battery life spans. Solid-state batteries were also capable of operating efficiently in extreme
temperatures, reducing the need for complex cooling and conditioning systems. Toyota announced it
had developed a solid-state battery that would permit 900 miles of zero-emissions driving. 92
QuantumScape, a Volkswagen-backed startup located in California, developed fast-charging,
noncombustible solid-state batteries with twice the energy density of top-shelf lithium-ion cells. 93

2. Global tensions

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
 724-446 Tesla Motors in 2024--Turbulence Ahead?

As EVs emerged as the future of personal transportation, governments increasingly subsidized

domestic companies and began to discriminate against foreign competitors. The U.S. tax credit for EVs
excluded models with battery components manufactured in China, for instance. The rear-wheel drive
and long-range versions of Tesla’s Model 3 lost the $7,500 credit as a result. Cars made by GM and Ford
were similarly excluded. Both the Biden administration and the EU considered raising import tariffs
on Chinese EVs, which stood at 27.5% in the U.S. and 10% in the EU. The effectiveness of these trade
barriers was disputed, however. “There is no way the EU can do anything about Chinese carmakers
coming into Europe now,” said Pierre-Olivier Essig, an analyst at AIR Capital. “The battery supply
chain is totally controlled by the Chinese, so good luck with that. Any tariffs on imported Chinese EVs
would be a big deal and, by the way, several Chinese companies now have stakes in European
manufacturers too.” 94 BYD announced at the end of 2023 that it would build its first European car
factory in Szeged, Hungary. Reporter Stephen Wilmot, observed:

The risk is that the West cuts off its nose to spite its face. Slow down the shift to EVs too
much to build local supply chains and give domestic manufacturers time to adapt, and
Chinese technology might simply pull farther ahead, supported by a huge, generously
subsidized domestic market and exports to emerging economies. 95

3. Key materials

Geopolitical considerations were complicated by supply chain considerations. Lithium was a prime
example. While China accounted for only 15% of the global lithium raw material supply, 60% of battery
metal refining into specialist battery chemicals took place in China. Two Chinese companies, Amperex
Technology and BYD, produced the lion share of the 75% of global lithium-ion batteries that originated
in China. 96 China was not particularly prominent in mining any key materials—graphite was an
exception—but it had a strong position in materials processing, and it completely dominated the
production of cell components. Chinese companies produced 70% of all cathodes and more than 80%
of anodes. Analysts estimated that Chinese battery packs enjoyed a 24% cost advantage compared to
North America and a 33% advantage relative to Europe. 97

Like the U.S. and the EU, China did not shy away from exploiting its prominence in particular
industries. In 2023, it restricted the export of graphite products, key components of EV batteries,
pushing back against U.S. semiconductor export controls. 98

Building Tesla’s Future

As Elon Musk and his executive team decided where and how to compete, they faced tough choices.

Model Portfolio
Cybertruck With the launch of its Cybertruck (see Exhibit 11), Tesla had entered the highly
lucrative segment of pickup trucks. For legacy manufacturers, the shift from gas-powered sedans to
trucks and SUVs had been highly profitable. For example, GM made 80% of its EBIT from two pickup
trucks and two SUVs. 99 Tesla, however, expected no immediate financial impact. The company
estimated it would take 18 months to reach full production capacity (about 250,000 trucks). In part, the
slow ramp-up reflected ongoing production challenges. Tesla had decided to clad the Cybertruck in
ultrahard stainless steel, a material that did not need to be painted and added to the truck’s distinctive
look. But stainless steel was too hard for stamping. Instead, Tesla laser-cut the body panels and bent
them into shape, a technically challenging, laborious process. “We dug our own grave with the
Cybertruck,” Musk said. 100

10

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
 Tesla Motors in 2024--Turbulence Ahead? 724-446

Competition added to Tesla’s difficulties. When the company first announced the Cybertruck in
2019, there were no electric trucks on the market. By 2024, however, Ford had introduced its F-150
Lightning, an all-electric version of its best-selling vehicle, to generally positive reviews. MotorTrend
named the F-150 Lightning the 2023 Truck of the Year. 101 Ford delivered more than 13,000 units in 2022
and 21,000 in 2023, falling far short of the expected 150,000 units. The company hoped to increase
production to 80,000 units in 2024, cutting its 2023 output by 50%. 102

EV startup Rivian offered a more upscale pickup truck, the R1T Explore, which had won
MotorTrend’s prestigious Truck-of-the-Year award in 2022. 103 The company expected to sell 50,000
vehicles in 2022 but had to cut back its ambitions due to pandemic-related supply chain challenges. d104
It sold 25,000 vehicles that year and 52,000 in 2023. 105 Exhibit 12 provides a comparison across the three
pickup trucks.

Given the limited financial upside of the Cybertruck, some analysts argued that abandoning the
project was the right course of action. Jefferies analyst Philippe Houchois explained:

Cancelling the Cybertruck would probably be positive for shares. It would help Tesla
refocus on an edge that was built on simplicity, scale and speed. The Cybertruck [is] off-
mission. Modest incremental growth, no manufacturing leverage, the drag on profit and
cash (inclusive the twice-raised capex guidance) all suggest the Cybertruck diverted
resources from high volume global segments and the supply of 4680 [batteries] for the
Model Y. 106

Model 2 As customers received their first Cybertrucks, Musk announced the launch of a smaller,
less expensive model:

We are working on a low-cost electric vehicle that will be made in really high volume.
We’re quite far advanced in that work. I review the production line plans for that every
week. I think that the revolution in manufacturing that will be represented by that car will
blow people’s minds. It is not like any car production line that anyone’s ever seen. 107

Rumored to be priced at $25,000, the Model 2, as many observers called it, would allow Tesla to
compete more effectively at entry-level price points. In 2024, there was a single model priced below
$30,000 in the U.S., the Chevrolet Bolt ($27,000). 108 For conventional cars, this lower-price segment
made up 28% of the U.S. market. In China, where Tesla competed with its Model 3 (RMB 270,000,
$40,000) and Model Y (RMB 290,000, $42,000), SAIC-GM-Wuling had found substantial success with
small EVs priced below $15,000. Deutsche Bank analyst Emmanuel Rosner said, “[Model 2] is by far
Tesla’s largest growth opportunity, with the platform potentially supporting 5 million units… and
taking advantage of significant cost superiority compared to other automakers.” 109

New Roadster As Musk introduced a prototype of the New Roadster to enthusiastic cheers
(https://www.tesla.com/roadster) in 2017, he proudly declared the sportscar to be “the fastest
production car ever made, period.” Originally promised for 2020, the $200,000 New Roadster was
delayed year after year. Some observers expected the sportscar to become available in 2026. Chief
designer von Holzhausen explained:

d Rivian did not disclose production numbers for specific models. While analysts expected the company’s pickup truck to be the
most popular model, overall production volume also included the R1S SUV and the EDV 700 vans for Amazon, one of Rivian’s
backers.

11

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
 724-446 Tesla Motors in 2024--Turbulence Ahead?

We’re developing the [New Roadster]. I think you know we have priorities as a company,
and the priorities are mass electrification. And Roadster is not a mass product… But we
are working on it in earnest. And I think the time that we’ve taken has enabled us to really
improve on basically every metric that we set out to establish when we first debuted [the
New Roadster.] 110

Analysts predicted the global market for sports cars to be 1.1 million units by 2026, priced at an
average of $96,000. 111

Charging Network
By 2024, there were 56,000 public charging stations with 148,000 ports that served close to 2.5 million
EVs in the United States. e By comparison, the drivers of the 270 million conventional cars had access
to 150,000 gas stations. ChargePoint was the largest provider (30,000 sites), followed by Tesla (6,000
sites) and Sema (2,300 sites), but Tesla was a clear leader in providing fast-charging DC ports (see
Exhibit 13). In the United States, the company used a proprietary connector that it had first developed
for its Model S. All other EVs had Combined Charging System (CCS1) connectors, preventing non-
Tesla drivers from accessing Tesla’s Supercharger stations. 112 In Europe, all EV companies, including
Tesla, used CCS2 connectors.

In 2023, Tesla announced that it would open a fraction of its U.S. Supercharger stations to all EVs.
Public subsidies were a principal reason. The Biden Administration was committed to spending $5
billion over five years to create a national network of 500,000 charging ports by 2030. 113 Network
operators were eligible to receive the subsidies if their infrastructure was used by more than one EV
company. Following Tesla’s announcement, most EV brands decided to adopt Tesla’s NACS charging
standard for their upcoming models.

Tesla’s decision had its fair share of critics. Fred Lambert, editor-in-chief of the trade publication
Electrek, explained:

The idea of opening the Supercharger network to non-Tesla EVs is somewhat

controversial in the Tesla community since the network, which is much larger than any
other fast-charging network in the US, is one of the biggest advantages of driving a Tesla,
but it already gets crowded at times and adding more EVs to it will not help that issue. 114

Tesla committed to building an additional 7,500 charging stations in 2024 at a cost of $42,000
each. f115 Charging a non-Tesla with a Supercharger was one of the most expensive fast-charging
options in the U.S., about 50 cents per kWh. Across non-Tesla networks, the cost of fast charging was
between 30 and 40 cents per kWh. 116 Wedbush analyst Daniel Ives explained, “We estimate that Tesla’s
supercharger business will be roughly 3%-6% of total revenues, translating to a $10 billion to $20 billion
business by 2030.” 117

Autonomous Driving
In February 2023, Tesla recalled 362,758 cars whose FSD system had allowed the vehicles to
disregard stop signs and run red and yellow lights. On occasion, FSD also ignored posted speed limits.

e 2% of these ports were level 1 chargers, which charged at a rate of 5 miles of range per hour. 80% were level 2 chargers (25
miles per hour), and the remainder were Direct Current (DC) fast charging ports (200 to 400 miles of range per hour.)
f Historically, Tesla had a significant cost advantage in providing new stations. Competing charging stations cost $100,000 to
build.

12

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
 Tesla Motors in 2024--Turbulence Ahead? 724-446

In July of 2023, the company recalled another 1,337 vehicles whose forward-facing camera failed to
assist in emergency braking without warning the driver. Finally, Tesla recalled more than 2 million
vehicles in the U.S. and 1.6 million cars in China in late December 2023 and early 2024 to improve the
monitoring of drivers who used FSD. 118 The software fix, which Tesla delivered remotely, allowed the
vehicles to send additional alerts to inattentive drivers. It was unclear, however, if Tesla’s updates
resolved the issues. In one test, a Tesla driver was able to blow through intersections marked with a
stop sign. Geoffrey A. Fowler, writing for the Washington Post, remarked:

Nothing changed after the recall about what seems to me to be the most critical issue: the
places in which Autosteer will activate. I was able to use it well beyond highways,
including city streets with stop signs, stop lights and significant curves. Autosteer flew
into speed bumps at full speed, causing a raucous ride. This is bad software design. Teslas
already contain mapping systems that know which street you’re on. Tesla’s surround-
view cameras can identify stop signs and cross traffic. Why doesn’t Autopilot’s software
pay attention to that data and allow Autosteer to activate only on roads it was designed
for? 119

Despite the mega-recall, U.S. and Chinese regulators kept their investigation of Tesla open.

Labor Relations
Tesla had long refused to sign labor agreements with unions. In late 2023, Tesla mechanics in
Sweden went on strike, seeking to force the company into a collective bargaining agreement, which
was the norm in Sweden. To add pressure, unions stopped unloading Tesla cars from ships throughout
Scandinavia, and Sweden’s postal union refused to deliver Tesla’s mail, preventing the company from
receiving the plates it needed to register new cars. Jan Villadsen, head of Denmark’s Transport union,
explained: “Even if you are one of the richest people in the world, you can’t just make your own rules.
We have agreements [governing] the labor market in the Nordics, and you have to comply with them
if you want to do business here.” 120 “This kind of sympathy action is very unusual,” said Tommy
Wreeth, head of the Swedish Transport union. “We are doing it now to protect the integrity of Swedish
collective agreements… Tesla cannot buck the norm.” 121

Efforts to unionize were afoot in the U.S. as well. The United Auto Workers, which had won a record
contract from Detroit car manufacturers after a prolonged strike in 2023, set its eyes on unionizing 13
automakers, including Tesla. Musk disagreed with the idea of unions:

[Unions] try to create negativity in a company and create a sort of lords and peasants
situation. If Tesla gets unionized, it will be because we deserved it and we failed in some
way. But we certainly try hard to ensure the prosperity of everyone. 122

Unionization had the potential to significantly alter Tesla’s cost position. In 2024, the EV maker’s
average manufacturing wage stood at $24 per hour, compared to $37 per hour for unionized legacy
automakers such as GM and Ford.

The Road Ahead

Musk had predicted in 2020 that Tesla would deliver 20 million vehicles annually by 2030, making
it by far the largest car manufacturer. g 123 Was this still a reasonable goal given the changed competitive

g Volkswagen AG, currently the world’s largest automaker, produced 11 million units in 2022.

13

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
 724-446 Tesla Motors in 2024--Turbulence Ahead?

landscape? And if so, what was the best way to get there? Which models should Tesla prioritize? What
was the role of ancillary businesses such as EV charging and revenue from upselling autonomous
driving technology? After a turbulent period in the company’s history, was selling 20 million vehicles
perhaps not more than an illusory dream?

14

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
 Tesla Motors in 2024--Turbulence Ahead? 724-446

Exhibit 1 Market Capitalization of Select Automakers, January 2, 2015 to January 2, 2024 (USD)

Source: Capital IQ.

Exhibit 2 Global Passenger EV Market Share

Source: Team Counterpoint, “Global Electric Vehicle Market Share, Q4 2021 – Q3 2023,” November 30, 2023,
https://www.counterpointresearch.com/insights/global-electric-vehicle-market-share/, accessed January 2024.

15

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
 724-446 Tesla Motors in 2024--Turbulence Ahead?

Exhibit 3 Electric Car Model Availability by Size, 2018 and 2023

Source: International Energy Agency, April 2023, “Global EV Outlook 2023,” https://www.iea.org/reports/global-ev-
outlook-2023, accessed December 2023. All rights reserved.

Exhibit 4 Typical Revenue and Cost Structure of U.S. Dealer

Source: Adapted by casewriters from “5 Secrets to Improving Car Dealership Profitability in [2022],” November 10, 2022,
Modera, https://modera.com/automotive/car-dealership-profitability/, accessed December 2022.

16

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
 Tesla Motors in 2024--Turbulence Ahead? 724-446

Exhibit 5a The Tesla Roadster (original), Model S, Model X, Model 3, Model Y

Roadster Model S
(2008) (2012)

Model X Model 3
(2015) (2017)

Model Y
(2020)

Source: Roadster: Tesla Motors Inc. “Roadster 2.5 windmills trimmed,” July 1, 2010,
https://commons.wikimedia.org/wiki/File:Roadster_2.5_windmills_trimmed.jpg;
Model S: nakhon100, “Tesla Model S,” https://www.flickr.com/photos/8058098@N07/14652857267; (CC BY 2.0
https://creativecommons.org/licenses/by/2.0/)
Model X: NRMA New Cars, “Tesla Model X Geneva 2012 trimmed,” August 4, 2012,
https://commons.wikimedia.org/wiki/File:tesla_model_x_geneva_2012_trimmed.jpg, (CC BY 3.0
https://creativecommons.org/licenses/by/3.0/deed.en);
Model 3: “Tesla model 3 prototype,” https://commons.wikimedia.org/wiki/File:Tesla_model_3_prototype.jpg (CC
BY 4.0 https://creativecommons.org/licenses/by-sa/4.0/deed.en);
Model Y: “2020 Tesla Model Y,” https://commons.wikimedia.org/wiki/File:%2720_Tesla_Model_Y.jpg;

17

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
 724-446 Tesla Motors in 2024--Turbulence Ahead?

Exhibit 5b Tesla Models in 2023

Base Price Est. Max # Cargo Acceleration Est. Battery

Model Drive Top Speed
(in US) Range seats Capacity (0-60 mph) Capacity
Model S
Model S $74,990 405 mi* 5 28 cu ft AWD Dual Motor 3.1s 149 mph 100 kWh
Plaid $89,990 396 mi* 5 28 cu ft AWD Tri Motor 1.99s 200 mph 100 kWh
Model X
Model X $79,990 348 mi* 7 88 cu ft AWD Dual Motor 3.8s 155 mph 100 kWh
Plaid $94,990 333 mi* 6 88 cu ft AWD Tri Motor 2.5s 163 mph 100 kWh
Model 3
Model 3 $38,990 272 mi* 5 23 cu ft RWD 5.8s 140 mph 50 kWh
Long Range 45,990 325+ mi* 5 23 cu ft AWD Dual Motor 4.2s 145 mph 75 kWh
Performance $50,990 315 mi* 5 23 cu ft AWD Dual Motor 3.1s 162 mph 75 kWh
Model Y
Model Y $43,990 279 mi* 5 76 cu ft RWD 5.0s 135 mph 75 kWh
Long Range $48,990 330 mi* 7 76 cu ft AWD Dual Motor 4.8s 135 mph 75 kWh
Performance $52,490 303 mi* 5 76 cu ft AWD Dual Motor 3.5s 155 mph 75 kWh

Source: See endnote. 124

Note: Starred figures were specified to be EPA estimates. Prices differed by region.

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
18
 Tesla Motors in 2024--Turbulence Ahead? 724-446

Exhibit 6 Tesla Vehicle Deliveries (in units), 2019-2022

Year Models S & X Models 3 & Y Total

2019 66,000 300,600 367,200

2020 56,920 442,000 498,920
2021 24,980 911,242 936,222
2022 66,705 1,247,146 1,313,851
2023 68,874 1,739,707 1,808,581

Source: Compiled by casewriters from various Tesla SEC reports and press releases, accessed January 2024.

Note: These data may differ slightly from other published Tesla figures, as the company often revised its production and
delivery numbers after their initial release. *Tesla’s factory in Fremont, CA was shut down for much of Q2 2020 due
to the Covid-19 pandemic.

Exhibit 7 Estimated Revenue and Cost Structure for an Average* Model Y (in US$; Assuming
Monthly Production of 25,000 units and Cumulative Production of 50,000 units)

Fixed Cost** Variable Cost** Total Cost

Cost of Goods Sold 6,152 39,249 45,401

R&D 4,625 2,242 6,867
SG&A 2,219 5,136 7,355

Total Cost 12,996 46,627 59,623

Source: Van den Steen, Eric, Ramon Casadesus-Masanell, and Karen Elterman. “Tesla in 2023: ‘Electrified’ Competition.”
Harvard Business School Case 722-375, September 2021. (Revised March 2024.)

Note: * The estimates assume that 1/3 of volume is the Performance version and 2/3 is the Long Range version, resulting in
an average price of $54,000.
** The split into Fixed Cost versus Variable Cost is relative to Model Y volumes.

19

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
 724-446 Tesla Motors in 2024--Turbulence Ahead?

Exhibit 8 The 10 Best-Selling Plug-In Cars* Globally in 2023

Starting Est. Top Units sold

Model Maker Description Seats Market
Price Range Speed in 2022

North America, Europe,

1 Tesla Model Y Tesla SUV $43,990 5 260 mi 135 mph 970,403
China, Australia
BYD Song (BEV + ¥219,800
2 BYD SUV 5 375 mi 108 mph 497,081 China
PHEV) ($30,775)
North America, Europe,
3 Tesla Model 3 Tesla Four-door sedan $33,990 5 272 mi 125 mph 417,825
China, Australia
BYD Qin Plus (BEV ¥129,900
4 BYD Four-door sedan 5 260 mi 114 mph 370,542 China
+ PHEV) ($18,900)
BYD Yuan Plus (aka ¥135,900
5 BYD SUV 5 254 mi 99 mph 348,500 China
Atto 3) ($18,700)
Subcompact ¥116,800
6 BYD Dolphin BYD 5 211 mi 93 mph 282,954 China
hatchback ($16,000)
¥149,900
7 GAC Aion S GAC Four-door sedan 5 316 mi 60 mph 193,763 China
($20,500)
¥119,800
8 GAC Aion Y GAC SUV 5 267 mi 93 mph 190,763 China
($17,200)
Wuling HongGuang SAIC-GM-Wuling Micro electric ¥32,800
9 4 124 mi 62 mph 189,893 China
Mini Auotmobile car, hatchback ($4,730)
BYD Han (BEV + ¥219,800
10 BYD Four-door Sedan 5 323 mi 111 mph 185,634 China
PHEV) ($31,400)

Source: See endnote. 125

Note: The list reflects the top 10 for January-October 2023. Specs are for the base model of each vehicle. BEV (battery electric vehicle) and PHEV (plug-in hybrid) versions of the same
models were counted together in the source.

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
20
 Tesla Motors in 2024--Turbulence Ahead? 724-446

Exhibit 9a Income Statement for Tesla Motors (in US$ million)

2023 2022 2021 2020 2019 2018 2017 2016

Total revenues 71,606 81,462 53,823 31,536 24,578 21,461 11,759 7,000
Automotive revenue 60,856 71,462 47,232 27,236 20,821 18,515 9,641 6,351
Energy generation and 4,597 3,909 2,789 1,994 1,531 1,555 1,116
181
storage
Services and other 6,153 6,091 3,802 2,306 2,226 1,391 1,001 468

Total cost of revenues 58,384 60,609 40,217 24,906 20,509 17,419 9,536 5,401
Automotive cost of 48,891 51,108 33,393 20,259 16,398 14,174 7,433
4,750
revenues
Energy generation and 3,770 3,621 2,918 1,976 1,341 1,365 875
178
storage
Services and other 5,723 5,880 3,906 2,671 2,770 1,880 1,229 472

Gross profit 13,222 20,853 13,606 6,630 4,069 4,042 2,222 1,599

Research and development 2,875 3,075 2,593 1,491 1,343 1,460 1,378 834
SG&A 3,520 3,946 4,517 3,145 2,646 2,835 2,477 1,432
Total operating expenses 6,395 7,197 7,083 4,636 4,138 4,430 3,855 2,267

Income (loss) from operations 6,827 16,656 6,523 1,994 (69) (388) (1,632) (667)

Source: Casewriter estimates based on Tesla company reports, accessed December 14, 2017, March 2021, January 2023, and January 2024 via SEC.gov.

Note: 2023 results are for the first nine months of the year.

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
21
 724-446 Tesla Motors in 2024--Turbulence Ahead?

Exhibit 9b Revenue by Geography (in US$ million)

2023 2022 2021 2020

United States 33,472 40,553 23,973 15,207

China 15,642 18,145 13,844 6,662
Other International 22,492 22,764 16,006 9,667

Source: Casewriter estimates based on Tesla company reports, accessed December 2023 and January 2024 via SEC.gov.,

Note: 2023 results are for the first nine months of the year.

Exhibit 10 Tesla’s Gross Automotive Margin Excluding Regulatory Credits and Leasing (%)

Source: Casewriter estimates using company and FactSet data.

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
22
 Tesla Motors in 2024--Turbulence Ahead? 724-446

Exhibit 11 Tesla Cybertruck

Source: “Tesla Cybertruck,” November 21, 2019,

https://commons.wikimedia.org/wiki/File:Tesla_Cybertruck_outside_unveil_modified_by_Smnt.jpg, accessed
March 2024. Licensed under Creative Commons Attribution-ShareAlike 4.0 International (CC BY-SA 4.0).

23

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
 724-446 Tesla Motors in 2024--Turbulence Ahead?

Exhibit 12 Tesla Cybertruck, Ford F-150 Lightning, Rivian R1T – Specifications*

Model Starting Price Range (est.) Acceleration (0-60 mph) Towing Capacity Torque
Tesla Cybertruck
RWD $60,990 250 mi. 6.5 seconds 7,500 lbs. n.a.
AWD $79,990 340 mi. 4.1 seconds 11,000 lbs. 7,435 lb-ft
Cyberbeast $99,990 320 mi.** 2.6 seconds 11,000+ lbs. 10,296 lb-ft

Ford F-150 Lightning

Pro $49,995 240 mi. 4.1 seconds 7,700 lbs. 775 lb-ft
XLT $54,995 320 mi. Sub-4 seconds 10,000 lbs. 775 lb-ft
LARIAT $69,995 320 mi. Sub-4 seconds 10,000 lbs. 775 lb-ft
Platinum $91,995 300 mi. Sub-4 seconds 86,000 lbs. 775 lb-ft

Rivian R1T
Dual-Motor AWD† $73,000 260+ mi. 4.5 seconds†† 11,000 lbs. 600 lb-ft
Performance Dual-Motor AWD‡ $84,000 350 mi. 3.5 seconds†† 11,000 lbs. 829 lb-ft
Quad-Motor AWD§ $87,000 328 mi. 3 seconds†† 11,000 lbs. 900 lb-ft

Source: See endnote.126

Note: *Prices and specifications are for 2023 figures.
†Price and range for Dual-Motor All-Wheel Drive model are for an R1T with the Adventure package and standard battery pack option. The battery pack can be upgraded to

standard or max for a larger price and range.

‡ Price and range for Performance Dual-Motor model are for an R1T with the Adventure package and large battery pack option. The only battery pack option available for this

model is large.
§Price and range for Quad-Motor All-Wheel Drive model are for an R1T with the Adventure package and large battery pack option. The only battery pack option available for

this model is large.

**With addition of range extender, range can reach 440+ miles.
††Acceleration timing estimates depend on tire selection and battery pack.

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
24
 Tesla Motors in 2024--Turbulence Ahead? 724-446

Exhibit 13 Charging Networks in the United States

Number of Sites Level 1 Ports Level 2 Ports DC Fast Charging Ports

SemaCharge Network 2,302 0 6,987 0
Tesla 5,923 0 14,518 15,683
Non-Networked 9,349 2,991 21,718 1,390
ChargePoint Network 29,962 57 52,361 1,993

Source: Adapted by casewriter based on data from “How many electric vehicle charging stations are there in the US?,” USA
Facts, November, 23, 2022, https://usafacts.org/articles/how-many-electric-vehicle-charging-stations-are-there-in-
the-us/, accessed January 2023.

25

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
 724-446 Tesla Motors in 2024--Turbulence Ahead?

Endnotes

1 Rebecca Elliott and Sean McLain, “Tesla’s Designer: Cybertruck’s Funky Design Gives It an Edge,” The Wall Street Journal,
December 21, 2023, https://www.wsj.com/business/autos/tesla-cybertruck-design-08c405c3, accessed December 2023.
2 Philippe Houchois, “Life in the Slow Lane - Time to cancel Cybertruck?” Jeffries, November 20, 2023.

3 Rebecca Elliott, “Tesla’s Long-Awaited Cybertruck to Start at Roughly $61,000,” Wall Street Journal, November 30, 2023,
https://www.wsj.com/business/autos/tesla-cybertruck-event-delivery-price-b613d149.
4 Ryan Browne, “Tesla cuts Model S and Model X prices in the U.S. to stoke demand,” March 6, 2023, CNBC,
https://www.cnbc.com/2023/03/06/tesla-cuts-us-model-s-and-model-x-prices-between-4percent-and-9percent.html.
5 Graham Rapier, “Tesla Gigafactories: A Look at the manufacturing hubs and their future,” July 13, 2023, Business Insider,
https://www.businessinsider.com/tesla-gigafactory.
6 Will Sabel Courtney and Tyler Duffy, “The 41 Future Electric Cars We’re Most Excited to Drive.” Gear Patrol, November 20,
2023, https://www.gearpatrol.com/cars/g34452328/future-electric-cars/.
7 Charlie Martin, “New electric cars coming in 2023 and beyond.” Autocar, October 22, 2023, https://www.autocar.co.uk/car-
news/new-cars/new-electric-cars-coming-2023-and-beyond.
8 Carlton Reid, “How China’s EV Boom Caught Western Companies Asleep at the Wheel.” Wired, October 14, 2023,
https://www.wired.com/story/how-chinas-ev-boom-caught-western-car-companies-asleep-at-the-wheel/.
9 Yelin Mo and Casey Hall, “China’s Xiaomi unveils first electric car, plans to become top automaker.” Reuters, December 28,
2023, https://www.reuters.com/business/autos-transportation/china-smartphone-maker-xiaomi-unveils-first-electric-
vehicle-2023-12-28/.
10 IBIS World, “Global Car & Automobile Manufacturing,” September 2023, https://www.ibisworld.com/global/market-
research-reports/global-car-automobile-manufacturing-industry/#IndustryStatisticsAndTrends.
11 Ibid.

12 Ibid and U.S. Department of Transportation, Federal Highway Administration, 2009 National Household Travel Survey,
data extraction tool on http://nhts.ornl.gov, accessed June 8, 2013.
13 Selected automakers’ U.S. YTD market share in the first half of 2022, by key manufacturer, via Statista, accessed January,
2023.
14 Rosen, J.S. and K.N. DuBord, “State of the US Motor Vehicle Industry: 2012”, Briefing Research, February 2012,
http://www2.briefing.com/Marketing/includes/state-of-the-us-motor-vehicle-industry-2012.pdf, accessed July 31, 2013;
James Brock, The Structure of American Industry, Long Grove, IL: Waveland Press, 2013.
15 Selected passenger car manufacturers’ European market share, via Statista, accessed December, 2023, https://www-statista-
com.ezp-prod1.hul.harvard.edu/statistics/263421/market-share-of-selected-car-maunfacturers-in-europe/.
16 Qian Jin, “Top-Selling car brands in September 2023 in China,” Car News China, October 11, 2023,
https://carnewschina.com/2023/10/11/top-selling-car-brands-in-september-2023-in-china/.
17 Paul L. E. Grieco, Charles Murry and Ali Yurukoglu, “The Evolution of Market Power in the U.S. Automobile Industry.”
The Quarterly Journal of Economics, 18 September 2023, https://doi.org/10.1093/qje/qjad047.
18 Toyota Motor Corporation. “How many parts is each car made of?,” Toyota website,
http://www2.toyota.co.jp/en/kids/faq/entry/6203.php, accessed June 8, 2013.
19 Terry Shea, “Why does it cost so much for automakers to develop new models?” Translogic, AOLAutos, July 27 2010,
http://translogic.aolautos.com/2010/07/27/why-does-it-cost-so-much-for-automakers-to-develop-new-models/, accesssed
July 31 2013; Alex Taylor, “Ford’s $6 billion baby,” Fortune, June 28 1993,
http://money.cnn.com/magazines/fortune/fortune_archive/1993/06/28/78013/, accessed July 31 2013.

26

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
 Tesla Motors in 2024--Turbulence Ahead? 724-446

20 Van den Steen, Eric, Ramon Casadesus-Masanell, and Karen Elterman. “Tesla in 2023: ‘Electrified’ Competition.” Harvard
Business School Case 722-375, September 2021. (Revised March 2024.) based on Steven D. Levitt et al., “Toward an
Understanding of Learning by Doing: Evidence from an Automobile Assembly Plant,” University of Chicago Working Paper,
April 2013, http://faculty.chicagobooth.edu/chad.syverson/research/learningbydoing.pdf, accessed August 2, 2013, and Frey
Sebrina et al. “Learning Curves in Automobile Assembly Line,” Proceedings of the 16th Annual International Conference on
Industrial Engineering,
https://www.researchgate.net/profile/Sebrina_Frey/publication/233923352_LEARNING_CURVES_IN_AUTOMOBILE_ASS
EMBLY_LINE/links/02bfe50cfe42fdd23e000000/LEARNING-CURVES-IN-AUTOMOBILE-ASSEMBLY-
LINE.pdf?origin=publication_detail.
21 Celeste Huang, “Retail category share of US ad spend drops 3.1%, while technology and electronics sees growth,” WARC,
2022, https://www.warc.com/content/paywall/article/warc-curated-datapoints/retail-category-share-of-us-ad-spend-drops-
31-while-technology-and-electronics-sees-growth/en-gb/148694.
22 “A Beginners Guide to Automotive Dealership,” Spyne, https://www.spyne.ai/blogs/automotive-dealership, accessed
May 2023.
23 New Car Dealers in the US, IBISWorld, https://my-ibisworld-com.ezp-
prod1.hul.harvard.edu/us/en/industry/44111/about, accessed May 2023.
24 Jeanine Skowronski, “10 Most Common Car Repairs,” Mainstreet.com on Yahoo! Autos, October 25 2011,
http://autos.yahoo.com/news/10-most-common-car-repairs.html?page=all, accessed August 2, 2013; and Allen B. Ury, “The
10 Most Common Auto Repairs,” news.yotech.edu, April 19 2011, http://news.wyotech.edu/post/2011/04/10-most-
common-auto-repairs, accessed August 2, 2013.
25 “Where Does the Car Dealer Make Money?” Edmunds, June 13, 2019, https://www.edmunds.com/car-buying/where-
does-the-car-dealer-make-money.html and Jameson Ayers, “New Car Dealers in the US,” IBISWorld, January 2023,
https://my-ibisworld-com.ezp-prod1.hul.harvard.edu/us/en/industry/44111/industry-at-a-glance.
26 Auto Dealers in the United States – Facts & Statistics, via Statista, https://www-statista-com.ezp-
prod1.hul.harvard.edu/topics/3594/auto-dealers-in-the-us/#topicOverview, accessed May 2023.
27 “Estimated rate of new car sales purchased online,” via Statista, https://www.statista.com/statistics/1199431/online-car-
sales-share-in-selected-markets-worldwide/.
28 Van den Steen, Eric, Ramon Casadesus-Masanell, and Karen Elterman. “Tesla in 2023: ‘Electrified’ Competition.” Harvard
Business School Case 722-375, September 2021. (Revised March 2024.) and Daven Hiskey, “The First Speeding Infraction in the
U.S. was Committed by a New York City Taxi Driver in an Electric Car on May 20, 1899,” Today I Found Out, May 20, 2011,
https://www.todayifoundout.com/index.php/2011/05/the-first-speeding-infraction-in-the-u-s-was-committed-by-a-new-
york-city-taxi-driver-in-an-electric-car-on-may-20-1899/.
29 “Electric cars’ 130-year Odyssey to mass-adoption,” Auto2X, December 4, 2021, https://auto2xtech.com/electric-cars-
odyssey-to-reach-mass-adoption/
30 Andrew Lambrecht, “The Simplified History of The Electric Car,” InsideEVs, November 21, 2021,
https://insideevs.com/features/549726/electric-car-history/, accessed May 2023.
31 “Vehicle Types,” U.S. Department of Transportation, May 4, 2023, https://www.transportation.gov/rural/ev/toolkit/ev-
basics/vehicle-types, accessed May 2023.
32 “EV Powertrain Components – Basics,” EVreporter, October 28, 2019, https://evreporter.com/ev-powertrain-components/,
accessed May 2023.
33 Tim Pollard, “Electric car batteries: everything you need to know,” Car Magazine, December 6, 2022,
https://www.carmagazine.co.uk/electric/ev-car-battery-capacity-tech/, accessed May 2023.
34 “How do electric car batteries work?,” Energy Sage, November 28, 2022, https://www.energysage.com/electric-
vehicles/101/how-do-electric-car-batteries-work/, accessed May 2023.
35 Hiroko Tabuchi and Brad Plumer, “How Green Are Electric Vehicles?,” November 2, 2021, New York Times,
https://www.nytimes.com/2021/03/02/climate/electric-vehicles-environment.html, accessed May 2023.
36 Jon Emont, “EV Makers Confront the ‘Nickel Pickle’,” The Wall Street Journal, June 4, 2023,
https://www.wsj.com/articles/electric-vehicles-batteries-nickel-pickle-indonesia-9152b1f.

27

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
 724-446 Tesla Motors in 2024--Turbulence Ahead?

37 Hiroko Tabuchi and Brad Plumer, “How Green Are Electric Vehicles?,” November 2, 2021, New York Times,
https://www.nytimes.com/2021/03/02/climate/electric-vehicles-environment.html, accessed May 2023.
38 Internal Revenue Service, “Manufacturers and Models for New Qualified Clean Vehicles Purchased in 2023 or After,”
December 30, 2022, https://www.irs.gov/credits-deductions/manufacturers-and-models-for-new-qualified-clean-vehicles-
purchased-in-2023-or-after.
39 Giulia Interesse, “China Considers Extending its EV Subsidies to 2023,” September 29, 2022, https://www.china-
briefing.com/news/china-considers-extending-its-ev-subsidies-to-2023/.
40 Luke Hurst, “Helping you switch to electric cars: How do countries in Europe compare?” October 19, 2022,
https://www.euronews.com/next/2022/10/19/helping-you-to-switch-to-electric-cars-how-do-countries-in-europe-compare.
41 Biographical information about Elon Musk comes from TeslaRumors, “How Tesla Began,” Teslarumors.com,
http://teslarumors.com/HowTeslaBegan, accessed August 16, 2013.
42 Rex Roy, “First Drive: 2009 Tesla Roadster,” Motortrend, June 11, 2009, https://www.motortrend.com/reviews/2009-tesla-
roadster/, accessed May 2023.
43 Eric Gregersen and Barbara Schreiber, “Tesla, Inc.,” Britannica, May 23, 2023, https://www.britannica.com/topic/Tesla-
Motors, accessed May 2023.
44 Warren Brown, “A Jaw-dropping Ride, Batteries Included,” washingtonpost.com, January 25 2009,
http://www.washingtonpost.com/wp-dyn/content/article/2009/01/23/AR2009012301591.html, accessed November 1, 2013,
and Kim Reynolds, “First Drive: 2008 Tesla Roadster,” Motor Trend, March 2008,
http://www.motortrend.com/roadtests/alternative/112_0803_2008_tesla_roadster/, accessed November 1, 2013.
45 Matt Pressman, “The Car That Started It All – The Original Tesla Roadster,” EVAnnex, March 1, 2023,
https://evannex.com/blogs/news/take-an-in-depth-tour-of-the-original-tesla-
roadster#:~:text=Unfortunately%2C%20only%202%2C500%20Roadsters%20were,close%20and%20personal%20with%20one.,
accessed May 2023.
46 “Roadster,” Tesla.com, https://www.tesla.com/roadster, accessed May 2023.

47 Drew Dorian, “2026 Tesla Roadster, “ Car and Driver, https://www.caranddriver.com/tesla/roadster.

48 Sam Byford, “Tesla Model S getting first every over-the air car firmware upgrade next week,” The Verge, September 24,
2012, https://www.theverge.com/2012/9/24/3385506/tesla-model-s-over-the-air-car-firmware-update, accessed May 2023.
49 “Tesla: A History of Innovation (and Headaches),” Forbes, September 29, 2022,
https://www.forbes.com/sites/qai/2022/09/29/tesla-a-history-of-innovation-and-headaches/?sh=63b3f9751873, accessed
May 2023.
50 This estimate is based Tesla’s R&D expenses over the 2007–2012 period and taking into account that R&D was also working
on other projects, including the Roadster and powertrain projects.
51 Fred Lambert, “Tesla now produced more cars at Fremont factory than when operated by GM and Toyota,” Electrek, June
11, 2022, https://electrek.co/2022/06/11/tesla-produces-more-cars-fremont-factory-than-gm-toyota/, accessed May 2023.
52 Frank Markus, “Temple of Tesla: Touring Elon’s Factory,” motortrend.com, June 28, 2012,
http://www.motortrend.com/features/consumer/1206_temple_of_tesla_touring_elons_factory/, accessed August 11, 2013.
53 Fred Lambert, “Tesla Model 3’s supply chain will be ‘a bit easier’ than Model S, says Tesla’s former VP of Supply Chain,”
January 2017, electrek.co website, https://electrek.co/2017/01/17/tesla-model-3-supply-chain/, accessed January 27, 2017.
54 Tesla Motors, “Model X,” Tesla Motors website, http://www.teslamotors.com/modelx, accessed August 12, 2013.

55 Katie Fehrenbacher, “Why the Model X has been a real problem for Tesla,” Fortune.com, October 28, 2016,
http://fortune.com/2016/10/28/tesla-model-x-problem/, accessed January 27, 2017.
56 Elon Musk, “The Secret Tesla Motors Master Plan (just between you and me),” Tesla Motors blog, August 2, 2006,
http://www.teslamotors.com/blog/secret-tesla-motors-master-plan-just-between-you-and-me, accessed August 12, 2013.
57 Danielle Muoio, “Elon Musk just made Tesla history — the Model 3 has officially arrived,” Business Insider, July 29, 2017,
https://www.businessinsider.com/teslas-model-3-launch-deliveries-begin-photos-features-2017-7, accessed March 2021.

28

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
 Tesla Motors in 2024--Turbulence Ahead? 724-446

58 Andrew Evers, “Four years ago Elon Musk announced all Tesla cars have the hardware needed for full self-driving, so
where is it?” CNBC, October 17, 2020, https://www.cnbc.com/2020/10/17/why-teslas-full-self-driving-feature-is-taking-so-
long.html, accessed March 2021.
59 “Autopilot and Full Self-Driving Capability,” Tesla, https://www.tesla.com/support/autopilot.

60 Stephen Rivers, “Over 285,000 Beta Testers Have Bought Tesla’s Full Self-Driving,” Carscoops, December 30, 2022,
https://www.carscoops.com/2022/12/over-285000-beta-testers-have-bought-teslas-full-self-driving/.
61 Cade Metz et al., “What Riding in a elf-Driving Tesla Tells Us About the Future of Autonomy,” The New York Times,
November 14, 2022, https://www.nytimes.com/interactive/2022/11/14/technology/tesla-self-driving-flaws.html.
62 Tom Krisher, “Tesla’s recall of 2 million vehicles to fix its Autopilot system uses technology that may not work,” AP,
December 19, 2023, https://apnews.com/article/tesla-autopilot-recall-fix-software-9a9bd6fea76a564f417788f1430d5166.
63 Tom Krisher, “Tesla’s recall of 2 million vehicles to fix its Autopilot system uses technology that may not work,” AP,
December 19, 2023, https://apnews.com/article/tesla-autopilot-recall-fix-software-9a9bd6fea76a564f417788f1430d5166.
64 Dara Kerr, “Driverless car startup Cruise’s no good, terrible year,” NPR, December 30, 2023,
https://www.npr.org/2023/12/30/1222083720/driverless-cars-gm-cruise-waymo-san-francisco-accidents.
65 Dara Kerr, “Driverless car startup Cruise’s no good, terrible year,” NPR, December 30, 2023,
https://www.npr.org/2023/12/30/1222083720/driverless-cars-gm-cruise-waymo-san-francisco-accidents.
66 “40+ Corporations Working on Autonomous Vehicles,” CBInsights, December 16, 2020, https://www-cbinsights-
com.prd1.ezproxy-prod.hbs.edu/research/autonomous-driverless-vehicles-corporations-list/, accessed Feb. 2021.
67 Tim Stevens, “How Tesla, BMW, Ford, GM and Mercedes driver assist systems compare,” TechCrunch, December 28, 2023,
https://techcrunch.com/2023/12/28/how-tesla-bmw-ford-gm-and-mercedes-driver-assist-systems-compare/.
68 Trefor Moss, “Tesla Starts Delivering China-Made Model Y Crossover,” Wall Street Journal, https://www.wsj.com/articles
/tesla-starts-delivering-china-made-model-y-crossover-11610966805?mod=article_inline#comments_sector, accessed Feb. 2021.
69 Mark Kane, “What Batteries Are Tesla Using In Its Electric Cars?” InsideEVs, May 23, 2022,
https://insideevs.com/news/587455/batteries-tesla-using-electric-cars/.
70 Thomas Jahn, “Warum der Autobauer noch keine Batteriezellen in Grünheide baut,” Handelszeitung, October 14, 2022,
https://www.handelsblatt.com/unternehmen/industrie/tesla-warum-der-autobauer-noch-keine-batteriezellen-in-
gruenheide-baut/28744668.html?nlayer=Newsticker_1985586.
71 Ira Boudway, “Batteries For Electric Cars Speed Toward a Tipping Point,” Bloomberg.com, Dec. 16, 2020, accessed via
Business Source Complete, March 2021.
72 Tesla Motors, “Features,” and “Top 5 Questions,” Tesla Motors website, www.teslamotors.com/models/features and
www.teslamotors.com/goelectric, accessed August 12, 2013.
73 Automobilemag.com, “2013 Tesla Model S,” and “2013 BMW 5-Series,” automobilemag.com,
http://www.automobilemag.com/am/99/2013/tesla/model_s/base_sedan/341/ownership_costs.html and
http://www.automobilemag.com/am/2013/bmw/5_series/, accessed August 11, 2013; Teslarumors.com, “5-Year Cost of
Ownership: Tesla Model S vs BMW,” Teslarumors.com, http://teslarumors.com/Teslanomics-BMW.html, accessed August 11,
2013. The estimate is based on a corrected version of the TCO in Autmobilemag.
74 Fred Lambert, “Tesla tops the list of most satisfied customers in the entire auto industry,” Electrek, June 15, 2022,
https://electrek.co/2022/06/15/tesla-tops-list-most-satisfied-customers-entire-auto-industry/.
75 Elon Musk, “The Tesla Approach to Distributing and Servicing Cars,” Blog of Tesla Motors, October 22, 2012,
www.teslamotors.com/blog/tesla-approach-distributing-and-servicing-cars, accessed August 12, 2013.
76 Amy Wilson, “Musk says Texas dealers ‘unjust’ in preventing Tesla stores,” Automotive news, April 10, 2013, http://
www.autonews.com/article/20130410/RETAIL07/130419989/musk-says-texas-dealers-unjust-in-preventing-tesla-stores#,
accessed August 12, 2013; and Melissa Grey, “Tesla wins in North Carolina, paves the way for direct-to-consumer sales, “
engadget.com, June 27 2013, http://www.engadget.com/2013/06/27/tesla-victory-north-carolina/, accessed August 12, 2013.
77 Sean McLain, “EV Startup Fisker Ditches Tesla-Style Direct Sales Model.” Wall Street Journal, January 4, 2024,
https://www.wsj.com/business/autos/fisker-ditches-tesla-style-direct-sales-model-in-favor-of-dealerships-31dd71c0.

29

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
 724-446 Tesla Motors in 2024--Turbulence Ahead?

78 Neil King, “EVs Forecast to Account for Two Thirds of Global Light-Vehicle Sales in 2035,” EV Volumes, https://www.ev-
volumes.com/.
79 Neil King, “EVs Forecast to Account for Two Thirds of Global Light-Vehicle Sales in 2035,” EV Volumes, https://www.ev-
volumes.com/.
80 Michael Woodward, Bryn Walton, Jamie Hamilton, Geneviève Alberts, Saskia Fullerton-Smith, Edward Day, and James
Ringrow, “Electric vehicles: Setting a course for 2030,” Deloitte, July 28, 2020,
https://www2.deloitte.com/uk/en/insights/focus/future-of-mobility/electric-vehicle-trends-2030.html, accessed March
2021.
81 Neil King, “EVs Forecast to Account for Two Thirds of Global Light-Vehicle Sales in 2035,” EV Volumes, https://www.ev-
volumes.com/.
82 Michael Woodward, Bryn Walton, Jamie Hamilton, Geneviève Alberts, Saskia Fullerton-Smith, Edward Day, and James
Ringrow, “Electric vehicles: Setting a course for 2030,” Deloitte, July 28, 2020,
https://www2.deloitte.com/uk/en/insights/focus/future-of-mobility/electric-vehicle-trends-2030.html, accessed March
2021.
83 Michael Woodward, Bryn Walton, Jamie Hamilton, Geneviève Alberts, Saskia Fullerton-Smith, Edward Day, and James
Ringrow, “Electric vehicles: Setting a course for 2030,” Deloitte, July 28, 2020,
https://www2.deloitte.com/uk/en/insights/focus/future-of-mobility/electric-vehicle-trends-2030.html, accessed March
2021.
84 Sean McLain and Nate Rattner, “How Electric Vehicles Are Losing Momentum with U.S. Buyers,” The Wall Street Journal,
December 27, 2023, https://www.wsj.com/business/autos/electric-vehicle-demand-charts-7d3089c7.
85 Mike Colias, “GM Plans $10 Billion Stock Buyback in Bid to Assuage Investors,” Wall Street Journal, November 29, 2023,
https://www.wsj.com/business/autos/gm-plans-10-billion-share-repurchase-in-bid-to-assuage-investors-35ec7075.
86 SAC, “Major Automakers Reduce EV Production,” November 2, 2023, https://www.shipacarinc.com/major-automakers-
reduce-ev-production-challenges-in-the-electric-vehicle-industry/.
87 Paul Lienert, “Volkswagen aims to bring under-$35,000 EV to US in 3-4 years-VW executive.” Reuters, November 9, 2023,
https://www.reuters.com/business/autos-transportation/volkswagen-aims-bring-under-35000-ev-us-3-4-years-vw-
executive-2023-11-09/.
88 River Davis and Rebecca Elliott, “Tesla Supplier Panasonic Plans Additional $4 Billion EV Battery Plant in U.S.” The Wall
Street Journal, August 26, 2022, https://www.wsj.com/articles/tesla-supplier-panasonic-plans-additional-4-billion-ev-battery-
plant-in-u-s-11661495847.
89 James Purtill, “CATL unveils battery that may power electric airplanes and 1000-km range EVs,” May 2, 2023, ABC News,
https://www.abc.net.au/news/science/2023-05-03/catl-announces-battery-to-make-electric-aviation-possible/102289310,
accessed May 2023.
90 Will Shanklin, “The first EV with a lithium-free sodium battery hits the road in January.” Engadget, December 27, 2023,
https://www.engadget.com/the-first-ev-with-a-lithium-free-sodium-battery-hits-the-road-in-january-214828536.html.
91 ING, “Can sodium-ion batteries replace lithium-ion ones?” December 1, 2023, https://think.ing.com/articles/can-sodium-
ion-batteries-replace-lithium-ion-batteries/.
92 Iulian Dnistran, “Toyota’s Newly Revealed EV Plans Include 900-Mile Batteries.” Inside EVs, June 13, 2023,
https://insideevs.com/news/671771/toyota-ev-plans-900-mile-battery/.
93 Daniel Oberhaus, “Did QuantumScape Just Solve a 40-Year-Old Battery Problem?” Wired, December 8, 2023,
https://www.wired.com/story/quantumscape-solid-state-battery/.
94 Phoebe Sedgman, Jinshan Hong, and Linda Lew, “China’s Stranglehold on EV Supply Chain Will Be Tough to Break,”
September 27, 2023, Bloomberg, https://www.bloomberg.com/graphics/2023-breaking-china-ev-supply-chain-
dominance/?embedded-checkout=true.
95 Stephen Wilmot, “Western Anxiety About Chinese EVs Could Prove Self-Defeating.” Wall Street Journal, January 1, 2024,
https://www.wsj.com/business/autos/us-europe-anxiety-chinese-ev-gets-real-37a54973?mod=Searchresults_pos12&page=1.
96 ING, “Can sodium-ion batteries replace lithium-ion ones?” December 1, 2023, https://think.ing.com/articles/can-sodium-
ion-batteries-replace-lithium-ion-batteries/.

30

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
 Tesla Motors in 2024--Turbulence Ahead? 724-446

97 Phoebe Sedgman, Jinshan Hong and Linda Lew, “China’s Stranglehold on EV Supply Chain Will Be Tough to Break.”
Bloomberg, September 27, 2023, https://www.bloomberg.com/graphics/2023-breaking-china-ev-supply-chain-
dominance/?sref=PU6A3TUG.
98 Emily Benson and Thibault Denamiel, “China’s New Graphite Restrictions.” Center for Strategic and International Studies,
October 23, 2023, https://www.csis.org/analysis/chinas-new-graphite-restrictions.
99 Jerry Hirsch, “General Motors and Ford Can Juice Profits by Shedding Models,” Trucks.com, June 3, 2020,
https://www.trucks.com/2020/06/03/gm-ford-should-shed-models/.
100 Rebecca Elliott, “Behind Tesla’s Challenges in Making the Cybertruck: Ultrahard Stainless Steel.” Wall Street Journal,
November 27, 2023, https://www.wsj.com/business/autos/behind-teslas-challenges-in-making-the-cybertruck-ultrahard-
stainless-steel-8cb4c1b9.
101 Alex Kierstein, “2023 MotorTrend Truck of the Year: Pickup Revolution?” MotorTrend, December 13, 2022,
https://www.motortrend.com/news/2023-truck-of-the-year-shows-the-evolution-of-pickups/.
102 Andrew J. Hawkins, “Ford will cut weekly production of F-150 Lightning in response to slowing demand.” The Verge,
December 11, 2023, https://www.theverge.com/2023/12/11/23997632/ford-f150-lightning-production-reduce-ev-demand.
103 Scott Evans, “The Rivian R1T Is the 2022 MotorTrend Truck of the Year,” MotorTrend, December 13, 2021,
https://www.motortrend.com/news/rivian-r1t-2022-truck-of-the-year/.
104 Sean McLain, “EV Startup Rivian Missed 2022 Production Target,” The Wall Street Journal, January 3, 2022,
https://www.wsj.com/articles/ev-startup-rivian-missed-2022-production-target-11672788861.
105 Mark Kane, “Rivian Reveals Production And Sales Results In Q3 2022: New Records,” InsideEVs, October 4, 2022,
https://insideevs.com/news/614057/rivian-production-sales-2022q3/.
106 Philippe Houchois, “Life in the Slow Lane - Time to cancel Cybertruck?” Jeffries, November 20, 2023.

107 Iulian Dnistran, “Tesla’s Low-Cost EV Will Be Made In Texas First, Mexico Later, Musk Confirms.” Inside EVs, December
6, 2023, https://insideevs.com/news/699562/tesla-affordable-ev-texas-assembly-first-mexico-later-musk/.
108 “Here Are the 11 Cheapest Electric Vehicles You Can Buy,” Cars.com, December 28, 2023,
https://www.cars.com/articles/here-are-the-11-cheapest-electric-vehicles-you-can-buy-439849/.
109 Emmanuel Rosner, “4Q23 and 2024 deliveries + earnings preview.” Deutsche Bank, December 14, 2023.

110 Joey Klender, “Tesla Master Plan Part 3 is void of Roadster, but there might be a reason why.” Teslarati, April 6, 2023,
https://www.teslarati.com/tesla-master-plan-part-3-roadster-plans-update/.
111 “Sports Cars – Worldwide,” Statista, https://www.statista.com/outlook/mmo/passenger-cars/sports-cars/worldwide.

112 Bryce Gaton, “Tesla launches new EV charging battle, but the Plug War is already over,” The Driven, December 21, 2022,
https://thedriven.io/2022/12/21/tesla-launches-new-ev-charging-battle-but-the-plug-war-is-already-over/.
113 USA Facts, “How many electric vehicle charging stations are there in the US?” November 23, 2020,
https://usafacts.org/articles/how-many-electric-vehicle-charging-stations-are-there-in-the-us/.
114 Fred Lambert, “Tesla is preparing Supercharger membership for non-Tesla EV owners,” Electrek, August 17, 2022,
https://electrek.co/2022/08/17/tesla-preparing-supercharger-membership-non-tesla-ev-owners/.
115 Danny Vena, “Tech Analyst Dan Ives Says Tesla Just Turned This Huge Financial Burden Into a $20 Billion Revenue
Opportunity.” The Motley Fool, August 29, 2023, https://www.fool.com/investing/2023/08/29/tech-analyst-dan-ives-tesla-
burden-revenue/.
116 Keith Barry and Jeff S. Bartlett, “Most Automakers Move to a Common Plug Standard to Allow Their EVs to Use Tesla
Superchargers.” Consumer Reports, December 1, 2023, https://www.consumerreports.org/cars/hybrids-evs/tesla-
superchargers-open-to-other-evs-what-to-know-a9262067544/.
117 Daniel Ives, John Katsingris and Steven Wahrhaftig, “Tesla: A Deeper Dive into the Tesla Sum-of-the Parts; Next Chapter in
Growth Story.” Wedbush Securities, August 25, 2023.
118 NHTSA, “Safety Issues & Recalls,” https://www.nhtsa.gov/recalls#vehicle.

119 Geoffrey A. Fowler, “Testing Tesla’s Autopilot recall, I don’t feel much safer — and neither should you.” The Washington
Post, December 31, 2023, https://www.washingtonpost.com/technology/2023/12/31/tesla-autopilot-recall-test/.
31

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
 724-446 Tesla Motors in 2024--Turbulence Ahead?

120 Richard Milne, “Sweden unions to stop picking up Tesla waste in further setback to Elon Musk.” Financial Times,
December 13, 2023, https://www.ft.com/content/38cf4a70-da18-4b81-ab56-6e04d802284f.
121 Richard Milne, “Sweden unions to stop picking up Tesla waste in further setback to Elon Musk.” Financial Times,
December 13, 2023, https://www.ft.com/content/38cf4a70-da18-4b81-ab56-6e04d802284f.
122 Nora Eckert, “UAW Launches Organizing Drive, Targets Tesla and Toyota.” Wall Street Journal, November 29, 2023,
https://www.wsj.com/business/autos/uaw-launches-organizing-drive-targets-tesla-and-toyota-8ca34c45.
123 Grace Dean, “Elon Musk says Tesla will ‘probably’ make 20 million electric vehicles a year by 2030 — more than 50 times
what it produced last year,” Business Insider, Sept. 28, 2020, https://www.businessinsider.com/elon-musk-tesla-likely-20-
million-electric-vehicles-year-2030-2020-9, accessed Feb. 2021; “Tesla Q4 2020 Vehicle Production & Deliveries,” Tesla Press
Release, Jan. 2, 2021, https://ir.tesla.com/press-release/tesla-q4-2020-vehicle-production-deliveries, accessed Feb. 2021.
124 Tesla, “Compare Models,” https://www.tesla.com/compare, accessed January 2024; Tesla, “Model 3,”
https://www.tesla.com/m3/order/5YJ3244_7dd7664e796dd85f290d40e4e50ec141?postal=02163&region=MA&coord=42.3663
518,-71.11959949999999&titleStatus=new&redirect=no#overview, accessed January 2023; Electric Vehicle Database, https://ev-
database.org/#sort:path~type~order=.rank~number~desc|range-slider-range:prev~next=0~1200|range-slider-
acceleration:prev~next=2~23|range-slider-topspeed:prev~next=110~350|range-slider-battery:prev~next=10~200|range-
slider-towweight:prev~next=0~2500|range-slider-fastcharge:prev~next=0~1500|paging:currentPage=0|paging:number=9,
accessed January 2023; Kelley Blue Book, “2023 Tesla Model 3,” https://www.kbb.com/tesla/model-3/, accessed January
2023; Motortrend, “2023 Tesla Model 3,” https://www.motortrend.com/cars/tesla/model-
3/2023/#:~:text=The%20basic%20Model%203%20Rear,3%20varies%20depending%20on%20specification., accessed January
2023; Kelley Blue Book, “2023 Tesla Model S,” https://www.kbb.com/tesla/model-s/, accessed May 2023, Kelley Blue Book,
2023 Tesla Model X, https://www.kbb.com/tesla/model-x/, accessed May 2023; Kelley Blue Book, “2023 Tesla Model Y,”
https://www.kbb.com/tesla/model-y/, accessed May 2023.
125 Mark Kane, “Global EV Sales Maintain Record Pace of 1.3 Million in October 2023,” December 9, 2023, InsideEVs,
https://insideevs.com/news/700033/global-ev-sales-october2023/, accessed January 2024;
BYD Dolphin: Iulian Dnistran, “NYD Dolphin Chineses EV Debuts in North America, Starts From $31,000,” September 25,
2023, InsideEVs, https://insideevs.com/news/688363/byd-dolphin-ev-north-america-launch-price-details/, accessed January
2024; Aaron Gold, “BYD Dolphin First Dive: Could This $31,000 Chinese EV Swim in the U.S. Market?,” July 24, 2023,
MotorTrend, https://www.motortrend.com/reviews/2023-byd-dolphin-first-drive-review/, accessed January 2024; “BYD
Dolphin Specification,” BYD, file:///C:/Users/kstoppiello/Downloads/BYD%20DOLPHIN%20UK-V3.pdf, accessed January
2024;
BYD Han: “BYD Han Specification,” BYD, file:///C:/Users/kstoppiello/Downloads/BYD%20HAN%20.pdf, accessed
January 2024; “BYD Han,” BYD, accessed January 2024; “BYD Han,” March 2023, Electric Vehicle Database, https://ev-
database.org/car/1784/BYD-HAN, accessed January 2024;
BYD Qin: Qian Jin, “2023 BYD Qin Jin Plus EV launched, starting at 18,900 USD,” April 10, 2023, CarNewsChina,
https://carnewschina.com/2023/04/10/2023-byd-qin-plus-ev-launched-starting-at-18900-usd/, accessed January 2024;
BYD Song: “2023 BYD Song Plus EV,” licarco, https://www.licarco.com/2023-byd-song-plus-ev, accessed January 2024;
BYD Yuan: Peter Johnson, “BYD’s Yuan Plus EV hits major milestone with starting prices under $20,000,” September 15, 2023,
Electrek, https://electrek.co/2023/09/15/byds-yuan-plus-ev-hits-milestone-prices-under-
20k/#:~:text=It%20starts%20at%20135%2C800%20yuan,the%20brand%20into%20new%20markets., accessed January 2024;
“BYD Yuan Plus,” BYD, file:///C:/Users/kstoppiello/Downloads/yuan-plus-flyer-right-rudder-en-20230801.pdf, accessed
January 2024;
GAC Aion S: Denis Bobylev, “GAC Aion S Max sedan launched in China with 245 hp. Price starts at 20,500 USD,” October 26,
2023, CarNewsChina, https://carnewschina.com/2023/10/26/gac-aion-s-max-sedan-launched-in-china-with-245-hp-price-
starts-at-20500-usd/, accessed January 2024;
GAC Aion Y: Dong Yi Chen, “GAC Aion Y Younger electric SUV launched in China with a 430 km range,” March 8, 2023,
CarNewsChina, https://carnewschina.com/2023/03/08/gac-aion-y-younger-electric-suv-launched-in-china-with-a-430-km-
range/, accessed January 2024;
Tesla Model Y: “Compare Models,” Tesla, https://www.tesla.com/compare , accessed January 2024;
Tesla Model 3: “Compare Models,” Tesla, https://www.tesla.com/compare , accessed January 2024;

32

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.
 Tesla Motors in 2024--Turbulence Ahead? 724-446

Wuling HongGuang Mini: Denis Bobylev, “Wuling Hongguang Mini EV costs 2,850 USD with a battery subscription,” May
11, 2023, CarNewsChina, https://carnewschina.com/2023/05/11/wuling-hongguang-mini-ev-costs-2850-usd-with-a-battery-
subscription/, accessed January 2024; Rhian Hunt, “GM’s Wuling MINI EV Ranks Well in J.D. Power 2023 EV Initial Quality
Study,” June 2, 2023, GM Authority, https://gmauthority.com/blog/2023/06/gms-wuling-mini-ev-ranks-well-in-j-d-power-
2023-ev-initial-quality-study/, accessed January 2024; Jiri Opletal, “Wuling Mini EV April sales reveal the reason for a massive
price cut,” May 23, 2023, CarNewsChina, https://carnewschina.com/2023/05/23/wuling-mini-ev-april-sales-reveal-the-
reason-for-a-massive-price-cut/, accessed January 2024; Mark Kane, “China: Wuling Hong Guang MINI EV Notes Close to
100,000 Sales in Q1 2022,” April 19, 2022, https://insideevs.com/news/580615/china-wuling-hongguang-ev-sales-2022q1/,
accessed January 2024;
126 Andrew J. Hawkins, “How the Tesla Cybertruck has changed in 2019,” December 1, 2023, The Verge,
https://www.theverge.com/23984025/tesla-cybertruck-specs-price-change-2019-vs-2023, accessed January 2024; Maria
Merano, “F-150 Lightning vs Tesla Cybertruck vs Rivian R1T: How Ford’s new EV stacks up against younger competitors,”
Teslarati, May 20, 2021, https://www.teslarati.com/f-150-lightning-vs-tesla-cybertruck-vs-rivian-r1t-price-specs-release-date/,
accessed January 2021; Tesla Company, “Cybertruck,” https://www.tesla.com/cybertruck, accessed January 2024; Emme Hall,
Steven Ewing, Chris Paukert, Kyle Hyatt, “Ford F-150 Lightning vs. Tesla, Rivian, GMC, and Chevy: Electric Pickup Specs
Compared, CNET, May 11, 2022, https://www.cnet.com/roadshow/news/ford-f150-lightning-tesla-cybertruck-rivian-r1t-
chevy-silverado-ev-spec-comparison/, accessed January 2023; Eric Stafford, “2023 Tesla Cybertruck,” Car and Driver,
https://www.caranddriver.com/tesla/cybertruck, accessed January 2023; Ford Company, “2023 Ford F-150 Lightning,”
https://www.ford.com/trucks/f150/f150-lightning/, accessed January 2024; Rivian Company, “R1T,” accessed January 2024;
Michael Akuchie, “Rivian Dual-Motor vs. Quad-Motor: Which AWD System is Right For You?,” ScreenRant, January 9, 2023,
https://screenrant.com/rivian-dual-motor-vs-quad-motor-awd-
system/#:~:text=The%20Dual%2DMotor%20AWD%20can%20accelerate%20from%200%2D60%20mph,Motor’s%20record%20
of%203%20seconds., accessed January 2023.

33

This document is authorized for use only in Fernando Sanchez's Dirección estratégica-MBA Concep. 2022 at Universidad de Chile from May 2024 to Oct 2024.