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Tesla Case Study

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Introduction Tesla Motors, Inc. is an American company that designs, manufactures, and sells electric cars and electric vehicle powertrain components. Tesla Motors first gained widespread attention by producing the Tesla Roadster, the first fully electric sports car. The company's second vehicle was the Model S, a fully electric luxury sedan. Tesla also manufactures and sells electric powertrain components, including lithium-ion battery packs, to automakers, including Daimler and Toyota. Tesla's CEO, Elon Musk, has said he envisions Tesla as an independent automaker, with the goal of eventually offering electric cars at a price affordable to the average consumer. Lithium- ion cell commoditization and high-end product strategy shield the company from significant interdependence and integration risk. Tesla Motors is a public company that trades on the NASDAQ stock exchange under the symbol TSLA. In the first quarter of 2013, Tesla posted profits for the first time in its ten year history. Tesla raised $60 million and spent about $25 million developing its two-seat Roadster vehicle that sells for $109,000. Over the last couple of years, Tesla Motors has fought many legal and legislative battles in a large number of states over proposed or current state laws that try to stymie Tesla’s unique factory-direct sales and service model. In most cases—Massachusetts, New York, and North Carolina, among others—Tesla has managed to stave off the proposed laws, which are typically backed by franchised car dealers, or it has won lawsuits based on current laws that were brought by dealer groups. But in Texas, which has the nation's most Draconian anti-Tesla rules, the company's lobbying efforts have run into a brick wall. For the purposes of this ... ... middle of paper ... ...nasonic and its suppliers are only planning to invest $1 billion. Panasonic will be paid an IP royalty for every cell the Gigafactory produces. What it will not get is a profit margin on the percentage of output that belongs to Tesla. Reference: http://seekingalpha.com/news/1650803-all-eyes-on-teslas-gigafactory Conclusion: Tesla is a leader in its marketplace, and some of the success must be attributed to its ability to control its IP. Being a first mover in manufacturing electric cars, there is an ever-growing threat of competitors attempting to get a piece of the pie. Tesla must continue to use the patenting process as a means to protect its products. Additionally, the company should be more aggressive towards implementing its current IP protection strategies. This will streamline its effectiveness to control infringements and help manage its ever-growing IP.
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