Case 2: Tesla, Inc.: The Strategic Partnership for a New Gigafactory in China
1. Is China a strategically important market for Tesla? Why?
2. What were the challenges for Tesla investing in China, the world’s largest automotive market?
(For Q1 and Q2, note you could analyze the questions using PEST and Porter’s Industry Analysis Framework as guidelines).
3. Does Tesla have internal capability to exploit the opportunities and overcome the threats/entry barriers? Why?
4. Should Tesla have taken a partner for its new Shanghai facility? If so, which battery suppliers should Tesla choose?