Tesla is trying to successfully implement systemic

Tesla Motors was found in 2003, the
same year EV1 was destruct. It is a car company that produces only electric
vehicles. It is the first successful startup car manufacturer in over 100 years
(Baer 2014). It released its first EV in 2008, a two-seater sports car called
Roadster. It was actually the first production car to use lithium-ion
batteries, the first to be able to travel over 200 miles (244 miles) and it
made the world distance record of 311 miles. Even though Roadster was priced at
109,000 dollars, it proved to the public that an EV could be fast and have a
long range.

 

In 2012 Tesla released Model S, a
seven-seated EV that competes in the premium sedan category. Unlike the
Roadster, Model S was created entirely by Tesla (Welch 2014). Its prices range
from 58,570 dollars to 106,900 dollars, with driving ranges from 208 to 265
miles.

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In my opinion Tesla are succeeding
because if a company wants to advance EVs, it cannot do it by using and
exploiting the old business system of gasoline cars. Instead they need to
create a completely new business system around the EVs and innovate all of the
different areas that need improving, such as charging stations. Answering to
this need is called in this research as the systemic innovating of EVs which is
based on the relevant theory of systemic innovation that will be presented in
the theory chapter. Tesla is trying to successfully implement systemic
innovating. The main difficulty with this objective is that the business system
of gasoline cars has been innovated and advanced for the past 150 years and
counting.

 

Musk said in an interview (RTL Z 2014)
that all of the proceeds the company receives from its current EVs will be
placed into the development of its future models. Even with the complex advancing
requirements of EVs, Tesla still made a revenue of 2.5 billion dollars in 2013
and Morgan Stanley expects the revenue to be ten-fold by 2016 (Sharf 2014).
Although today the electric car industry is just a drop in the ocean for the
whole car industry, are we seeing Tesla initiating the ripple effect towards
the new golden age of electric vehicles?

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