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Group 10
G Sujitha M021-15
Jayshree Saikia M026-15
Saswata Banerjee M048-15
Shruti Vinyas M051-15
Anuj Khatri M078-15
Lenin Kispotta M100-15
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SMIT Progress Report Group 10
1. Introduction
Elon Musk is an investor, inventor and business person. His passion towards computing, applied
Physics and renewable energy goes back to his childhood days. In his quest to build a more sustainable
ecosystem around alternate fuel he has founded and/or leads organizations like Tesla, SpaceX, SolarCity,
and OpenAI.
Tesla Motors was founded in 2003 by Martin Eberhard and Marc Tarpenning, with the goal to
commercialize electric vehicles. They came up with the initial prototype for the Roadster and funded the
operations till 2004. In 2004 Elon Musk led the Series A round of funding, and from then onwards have
For our project we would be looking at the capabilities developed/ partnered, strategies formulated at
different stages to achieve their final goal of entering the mass market with electric cars and provide a
In 2006 Elon Musk envisioned a master plan for Tesla Motors. He wanted to build an electric sports car
which will cater to a small segment and be expensive, channel the money to build more affordable electric
cars which will cater to the mass market. And while doing so provide zero emission electric power
generation options.
In 2016 Musk went ahead and envisioned another master plan to provide sustainable alternate fuel
options. In this master plan he mentions to develop solar roof and integrate them as battery storage.
Expand the electric car product line for all major segments, develop self-driving capabilities which will
make the cars 10 times safer than those running on gasoline, and finally to enable the car as a revenue
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SMIT Progress Report Group 10
In our project we are looking at how Tesla crossed the chasm by developing a whole glitch free product
that is the best in the market, giving its customers a compelling reason to buy their cars. We are also
looking at how Tesla started its journey from the top of the Technology S-curve as opposed to general
practice. We would study the impact on market adoption and how competitors have responded to their
move. In its quest to provide affordable electric cars, Tesla went along to build a whole ecosystem around.
They started by developing a network of charging points - from wall chargers, went on to develop
supercharger stations to charge a battery fully within 75 minutes, and presently running a pilot study on
battery swap which takes around 3 minutes. We would study and compare the technology curves of
gasoline run cars versus electric run curves. Tesla addressed the issues of mileage per charge (270 Km
with a charge of 30 minutes), battery charging and battery disposal, that troubled electric car
manufacturers by delivering the best product with full utilities and converted them into order winners.
All this while Tesla went ahead with disruptive innovations from developing a car which runs on Lithium-
ion battery (to which the then Robert Lutz Vice Chairman of General Motors remarked that the
technology was at least 10 years ahead of its time), to developing batteries which had multiple core
instead of having a single one. Tesla headed by Musk has been focused on their strategy to provide
affordable electric cars, and they work around to achieve the same. Their deliberate strategies have helped
In their journey Tesla have developed some capabilities like development of batteries, autopilot
technology, solar glass, and car design, while they have partnered with players like Lotus, Panasonic,
Daimler AG, Toyota, and Bosch to bridge the gap in those capabilities that they lacked. In order to be a
sustainable business Tesla have learned from their partnerships to develop their capabilities like building
their own ERP from the scratch. We are studying the formulation of their corporate strategies and how
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SMIT Progress Report Group 10
In 2006 Elon Musk helped his cousins found SolarCity to combat global warming by tapping alternate
energy and batteries. In 2014 Tesla announced that it would build Gigafactory 1 to provide 50 GWh/yr of
battery packs. In 2014 Tesla opened up its patents for their use in good faith. In 2015 Musk founded a not-
for-profit organization OpenAI to develop Artificial Intelligence in a way that is safe and beneficial for
All these pieces are in fact joined and aimed at the main goal to achieve sustainable alternate power. By
opening up its patents Tesla hopes to influence the electric car market by setting the standard for electric
cars and batteries. The formation of SolarCity and its subsequent merger with Tesla was to develop its
capabilities and to cater to its own needs and cater to the market, and with their new capabilities they have
started a pilot to switch car batteries in under 3 minutes. OpenAI can be seen to be the next move towards
having a robust autopilot system in their cars that makes driving safer.
4. Competition
Tesla have elaborate plans to develop an entire ecosystem through sustainable alternate energy. They have
ventured into developing small-scale batteries to meet the needs of households (Powerwall) and are
developing large-scale batteries for industrial usage. They have come up with solar panels and solar tiles
for homes to provide emission free alternate energy. Tesla is in the process of rolling out their Model 3
which is priced at $35,000. Tesla also plans to have transportation fleet running on batteries.
We would like to study about the key component manufactures and how they have evolved along with
Tesla in this journey. Tesla has taken the innovation game to newer heights and we will look at how their
competitors (gasoline/hybrid/battery car manufacturers) have responded. We will also look into the
changes in policies of economies like offering tax rebate of $7,500 to battery car owners in US.
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SMIT Progress Report Group 10
5. References
a. http://executive.mit.edu/blog/innovating-innovation-tesla#.WHHw-YVOLIV
b. http://www.forbes.com/sites/innovatorsdna/2015/08/19/teslas-secret-formula/#d36a2ef59f86
c. https://www.greentechmedia.com/articles/read/What-Would-Teslas-Solar-Strategy-Look-Like
d. http://www.forbes.com/sites/innovatorsdna/2015/08/20/teslas-high-end-disruption-
gamble/#5486d0ec4e2f
e. https://www.tesla.com/blog/secret-tesla-motors-master-plan-just-between-you-and-me
f. https://hbr.org/2015/09/piecing-together-the-tesla-strategy-puzzle
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