Tesla CEO Quits Presidential Councils Case-Study Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Tesla CEO Quits Presidential Councils Case-Study Solution

Case Overview

The case is based on Elon musk's withdrawal from two presidential councils after Mr. Trump withdrew from the Paris agreement. The Paris agreement is an agreement that aims at minimizing the global greenhouse gases to slow down the global warming. Paris agreement is an agreement on which morethan 190 countries throughout the globe had joined handsin the United Nation’s conferenceto preserve the natural climate, but doing so tends to create chances of massive loss incurrences by those countries which are totally dependent on industrial sector for their economy. The United States withdrew from the Paris agreement to protect its economy. Following this incident, Elon musk also withdrew from his presidential councils, showing his disagreement on Trump's decision. Elon Musk is the founder of most successful companies like Tesla and SpaceX, which are also among those countries that tend to have a negative impact on the global climate. This incident reflects Elon musk's concern towards the climate preservation policies as well as his preference for the United States to stay aligned with the agreement,on which most of the countries throughout the world unified, for the achievement of a common goal.

PESTEL framework:

Economic impact:

Elon musk’s withdrawal is not perilous to the United States’ economy but it can potentially hurt the American economy to some degree, since Elon is not only a businessman but is also an investor who can detect and invest in most successful innovations for the future. His withdrawal is a source of loss for the American economy, because the export industry is one of the major sources of economy for the United States. Also, Tesla alone has created 1500 jobs and has proven itself to be a competitive developer of the world’s top advanced vehicles (energy.gov). The company has created a significant employment opportunity in the American job market and has also encouraged climate preserving innovation, for example: electric or solar energy-based vehicles in the United States.

Technological impact:

The technology-based industry is one of the five major industries of the United States, and Elon Musk is the founder of the world's most innovative and useful technologies. His investment decisions never turned unsuccessful, the example of which are: SpaceX, tesla and even PayPal. Elon has a critical eye for investment in innovative technologies. Due to this, Elon is a person who is of great importance to the United States. Elon Musk's withdrawal is most likely to cause some loss for the United States’ technology industry. The United States' technology industry can have a direct impact on the economy of the United States. The withdrawal of Elon musk can create hurdles for the US’s technology industry and it can also discourage the investors and innovators who are looking forward to creating environment friendly solutions to the global needs. In a long run, this decision can have an impact on other industries as well, and it can also create obstacles for innovations in the United States since innovation for environmental preservation is a huge cause that might have promoted innovations in the United States.

Environmental impact:

Elon Musk’s withdrawal from the presidential council helps the people in recognizing him as one of the leaders in the field of climate change preservation. Due to this, two major companies owned by Musk, i.e. SpaceX and tesla will also get the support of theenvironment activists. Elon’s decision can have a positive impact on how people perceive his companies. His companies will be more trusted and respected, and his decision will most likely increase his followers and active buyers. This decision can have additional benefits on the companies’ reputation and authenticity as compared to their competitors.

Competitive analysis:

The major competitors of tesla include Ford, General Motors, multinational automobile manufacturers (THE INVESTOPEDIA TEAM), li auto, Nio, and Nikola corp. The biggest competitor of tesla is Ford, whose capital is 78 million in comparison to 1.1 trillion ofTesla. In comparison to Tesla’s focus on the quality of the car; the biggest strength of Ford is being the oldest company which has a wide variety of cars. Such huge variety ensures that the company has something for every type of customer, whichcan have a great impact on company-wide-range approval, in addition to an increased number of customers. In contrast, Tesla’s main focus is to create top-quality luxurious electric cars. This idea has although reduced Tesla's set of customers, but, it is the most important idea behind the success of any business. Tesla's topmost strategy to create innovative technology can make it the leaders of innovative technology, because it is a core business strategy to create something so unique and beneficial that the product leads out of competition, since it will be one of its kind. This strategy of Elon Musk is the main reason behind Tesla’s success, since a business’s success is mainly dependent on marketing and a unique idea that eases people’s lives.

General Motor is another great competitor of Tesla. Both Tesla and General Motors have the core strengths of focusing on innovation. General Motor is a strong competitor of Tesla since its strengths include an excellent sales strategy, strong strategic partnership and it keeps it customers’ safety first in all its innovation plans. It was also estimated that the main strength of GM which covers all of its weaknesses is its preference for partnership. This is the main reason how GM managed to lead the list of largest automobile manufacturers in 2019 (hub). Although one of Tesla’s weaknesses that it doesn’t develop enough components to meet the demand of its customers, but the strengths that cover this weakness is Tesla’s focus on quality and its strength of developing the most luxurious cars. Additionally, the partner-related policy might help Tesla in meeting its growing demand, as its numerous strengths including its brand equity, have helped it in being the leader on the list of most luxurious electric vehicle manufacturers.................

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.