Tesla Roadster: The Car of the Future?

            
 
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Case Details:

Case Code : OPER076
Case Length : 18 Pages
Period : 2003-2009
Organization : Tesla Motors Inc.
Pub Date : 2009
Teaching Note :Not Available
Countries : USA
Industry : Automobile

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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"They've finally gotten a little religion. The auto industry is at the point where it has to invest in its future, and smart investors bet on the inevitable. Electric drive is inevitable."1

- Chelsea Sexton, an electric vehicle advocate in January 2009.

"We are the only ones who have cracked the technology. We have the solution."2

- Franz von Holzhausen, Designer, Tesla Motors Inc., in January 2009.

Introduction

In January, 2009, US-based, Tesla Motors Inc. (Tesla) announced plans to launch a new high performance version3 of the company's electric sports car the 'Tesla Roadster'. The new version, called the 'Tesla Roadster Sport' priced at US$ 128,000 was expected to be delivered by June 2009.

The price of the new version was much higher than the price of the 'Tesla Roadster,' launched in 2008, which after a federal tax credit for electric vehicles (EVs) of US$ 7,500, was priced at US$ 101,500.

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1] Chuck Squatriglia, "Automakers Sing the Body Electric," http://blog.wired.com, January 15, 2009.
2] Chris Vander Doelen, "Tesla's Great Timing," www2.canada.com, January 27, 2009.
3] The Tesla Roadster Sport had the capacity to go from 0 to 60 mph in 3.7 seconds, which was 0.2 seconds faster than the standard Roadster. The extra performance in the new version came from a hand wound stator and increased winding density for lower resistance and higher peak torque.


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