Tesla, Inc.
: The Strategic Partnership for a New Gigafactory in China (2019)
1. Should Tesla have taken a partner for its new Shanghai facility? If so, should it have
been a battery supplier? If so, which battery suppliers could be potential partners?
Ans - The choice of have taken a partner depends on various factors and with whom also
depends on Tesla strategies,goals and capabilities at that duration of time. If Tesla go solo in
shanghai market allow them to maintain greater control on the market and over the
operations. Partnership with someone’s company may affect Tesla strategic plan , privacy,
leakage and intellectual safety.
If Tesla had to partner with someone on chinease E Vs market, should be a battery supplier.
It can be Panasonic, Tesla has a already partnership with Panasonic at its gigafactory 1 in
[Link] can also be a potential partner as it is a major chinease manufacturer. LG
Chem and Samsung SDI could be possibly partner as they hold control over local market and
experienced in EV sector.
2. What was the overall competitive situation of Tesla and its partnership with
Panasonic? Analyze the mission and vision, as well as the external and internal
environments, using various analytical tools.
Ans- Tesla more focused on creating electric vehicles production and energy sustainability
while Panasonic more focused toward better life of society. Tesla is going to be leading
electric vehicles manufacturer but struggling with production and quality control and also
market competitors. Tesla pollution free EV , automatic driving features and social
preference toward sustainable energy increase interest toward Tesla E Vs but govt policies ,
country economic and safety standard can be critical for Tesla operations. Tesla partnership
with Panasonic ensure stable supply of batteries in Tesla E Vs
3. How did Tesla overcome entry barriers in the established automotive industry and
rise to become one of the top-selling EV manufacturers?
Ans- Tesla rise and becoming a top selling E Vs in the market is due to their innovative
strategies , team work , and work function. Tesla long term batteries and automatic driving
features unable Tesla in top leading E Vs company make them product innovative. Their
marketing strategies maintain needs and interest in Tesla E Vs, Elon musk personality and
social media ‘twitter’ are examples of their marketing strategies. Tesla provide pollution free
E Vs, sustainable energy concept , innovative technologies position them in as a top leading
EV company.
4. How should Tesla and Panasonic strategically manage their partnership to optimize
its mutual benefits?
Ans- Tesla and Panasonic can share their bond of partnership in better way and enhance
their ability to become top leading company in EV, sustainable energy and battery market
by implementing followings strategies-
a. Communicate regulatory and trust on each other vision and values
b. Adapting changing market behavior on EV and batteries
c. Collaborative approach and decisions
d. Meet the expectations of customers and govt.
e. Aware of environment impact by producing batteries.
5. What were the challenges for Tesla investing in China, the world’s largest
automotive market?
Ans- china is the world largest automobile market, and chine provide large opportunity to
establish Tesla E Vs. Tesla created a huge market value in china EV market by scaling up
their vehicle, collaboration with local manufacturers , innovative technologies and
strategies.
Tesla got such success in china despite of many challenges includes-
China’s govt policies , building relationship with locals market, privacy and intellectual
safety, supercharger availability in long range china, increasing market competition, legal
regularities and certification.
