1. Should BMW expect Tesla to grow into a strong direct competitor like Audi, versus Tesla being limited to a niche or being just a flash in the pan?
Tesla is already profitable; costs will go down over time (especially battery); incredible product and it will be even more attractive once “newness” factor [fear of something new] goes away; Resale value guarantee; most people ...view middle of the document...
Tesla is not profitable; costs will rise and price has to come down; niche product [less attractive once newness wears off]; people don’t trust electric cars; range anxiety; If (once) market takes off BMW just jumps in [let tesla experience learning costs]; many other alternative energy sources.
2. Is Tesla at a competitive advantage or disadvantage? How will that evolve?
3. What do you think of Tesla’s entry strategy? KISS [Keep its strategy simple] they build a better car, faster and at lower costs. BUT, easily imitated.
4. What barriers did it have to overcome?
Brand, distribution network, service network, production plants, production know-how, supplier network, design and costs know-how, lack of acceptance of ‘electric car”
5. Should Nissan learn something from Tesla’s approach? Probably “no”.
6. Will other firms follow in Tesla’s footsteps? Probably no.
7. Do you think Tesla’s secret plan (p.9) was really a plan or an ex-post rationalization? Would it matter?
8. How do you expect the industry to evolve?