Tesla: Internationalization from Singapore to China
(7 pages of text)
Case (Pub Mat)
Elon Musk, the CEO of the U.S.-headquartered Tesla Motors (Tesla), was considering how the company should enter the Chinese market. Less than a year earlier, Tesla had exited Singapore after disappointing results only six months after entering that promising market. There were several questions that the company would have to answer in order to formulate an appropriate entry strategy for China. First, could the company learn from its experiences in the United States and Singapore and apply this learning to China? Second, was it the right time to enter the Chinese market? Finally, how could Tesla prevent a repeat of the Singapore experience in China? There were several questions that the company would have to answer in order to formulate an appropriate entry strategy for China.
This case is appropriate for courses in international business and strategy, particularly those with a strong focus on emerging markets and/or the automotive sector. This case will:
- Develop students’ ability to formulate an entry strategy for an innovative company entering an emerging market amidst high uncertainty.
- Provide insights into the internationalization of firms in the electric car manufacturing industry.
- Develop students’ skills in assessing how firms can learn from prior internationalization experiences when continuing to internationalize.
China, Medium, 2012
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