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The Emperor’s New Clothes: A Framework for Market-Based Management at Tesla Motors

JSME Vol 8: Issue 3, 2012

Author(s): Myles E. Mangram (SMC University, Switzerland)

Abstract:
Tesla Motors (“Tesla”) was the first automaker to manufacture and sell long-range, highway-capable electric vehicles in serial production, and is to be central to the overall success of the increasingly important global electric vehicle industry. In spite of its importance, outside of intense technological scrutiny by industry pundits and analysts, very little has been written about the managerial and economic aspects of Tesla and related challenges confronting the company. In response, this in-depth case study analysis suggests that these challenges can be overcome by implementing a strategic Market-Based Management framework and interrelated internal-markets approach to its current operations. This analysis is important to scholars and practitioners because of its unique application of a highly innovative and proven management framework to a disruptive and evolutionary enterprise.

Keywords: Tesla Motors, market-based management, internal markets, science of success, electric vehicles, case study

JEL Code(s): D20, M11, M20


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