First, we need to become very familiar with Tesla and its context. To start, we’ll work through a slide share from the Darden School of Business (https://www.slideshare.net/joseangeldf/darden-school-of-business-tesla-strategic-analysis)on Tesla’s strategy.
Step 1: Please write a clear, vivid summary statement that defines Tesla and what Tesla is trying to do. No more than one paragraph, please.
How are people responding?
One of the ways to assess strategy is to look at responses to it. Now, clearly that’s not the only way! But it can be informative. Please review the following and respond to the writing prompts.
The Wall Street Journal has had a lot to say about Musk and Tesla. Check out the article below and consider how it could affect the company and it’s share price.
How Tesla’s Elon Musk Makes a Strategy Out of Defiance https://www.wsj.com/articles/how-teslas-musk-makes-a-strategy-out-of-defiance-1523793601
Now, let’s get more specific. Please review the following article focused on Tesla’s response to a production issue. Strategy? Leadership?
Elon Musk ordered Tesla engineers to stop doing a critical brake test on Model 3s https://www.businessinsider.com/tesla-elon-musk-orders-engineers-to-stop-brake-and-roll-testing-2018-6
It’s getting interesting! Next, please read and watch the following from Bloomberg News, (https://www.bloomberg.com/news/articles/2018-05-23/musk-suggests-big-oil-is-behind-critical-media-coverage-of-tesla) as they review Musk’s response to production issues over time.
Musk Suggests Big Oil Fuels Critical Media Coverage of Tesla https://www.bloomberg.com/news/articles/2018-05-23/musk-suggests-big-oil-is-behind-critical-media-coverage-of-tesla
Tesla May Require $10B in Funding by 2020, Says Goldman Sachs https://www.bloomberg.com/news/videos/2018-05-17/tesla-may-require-10b-in-funding-by-2020-says-goldman-sachs-video
Step 2: Please write a clear, one paragraph response summarizing what you have read in this section. Who is Elon Musk? What is Tesla (really!)? Where is it going? What do YOU THINK about the strategy being employed? This should not be a rehash of the previous point, but an expansion.
What does the price of Tesla Stock tell us?
One of the most strategic sets of data we can use when assessing a company is the stock price. The stock price has two functions. First, it provides a real-time valuation of the company. It gives us a number that is very useful.
Second, it shows trends and perception. Stocks are volatile. As you know from previous courses, stock prices can shift from an amazing array of factors. Stock price can show us what shareholders fear, what they value, what they hope for. We can look at a stock’s trends and get a great sense of what impacts it: leadership? Oil prices? Tariffs?
Click here https://www.google.com/finance/quote/TSLA:NASDAQ?biw=1440&bih=803#scso=uid_wHVGW9qRN6Op_QbiwZsY_5:0 and take a careful look at Tesla’s stock. (Links to an external site.)Remember, we are looking at it from several angles! Click around and follow the prompts below:
What was going on around April 2nd? What about June 18th? Look at the trends, note some of the days that reflect extremes in price, and google to find out what was happening.
Where is the stock trending? If you had $10,000 to invest today, would you put it into Tesla stock? Why? Why not?
Finally, read the following article regarding Tesla’s stock prices.
Elon Musk Says Tesla May Go Private, and Its Stock Soars (https://www.nytimes.com/2018/08/07/business/tesla-stock-elon-musk-private.html)
And then, this recent piece:
Tesla’s Troubles Mount (https://www.nytimes.com/2019/03/06/business/energy-environment/tesla-stock-strategy.html?action=click&module=Top%20Stories&pgtype=Homepage)
Step 3: Please write a clear and focused summary on Tesla’s stock. What did you learn? What takes value from Tesla? What brings value? Where is it headed? Can you make a connection between the strategy we have been learning about AND how it’s reflected in the stock valuation?
To complete Step 3, please write a short, concise, summary statement about what you have learned from this case.