Page 84 - MS Year in Review 2020

is the lowest score.” The negatives and risk factors and questions result in

a score of 1 point less than the maximum of “5.”

Development of Products and/or Services

Positives:

 Tesla has developed a product that is clearly attractive to a growing

number of customers. cars. As above, the company sold approximately
368,000 vehicles globally in 2019 and Elon Musk, its founder and CEO,

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projects that it will sell 20 million long term.
 Tesla also has an opportunity to become an integrated energy company,
producing lithium-ion batteries.

 Tesla also plans a launched autonomous vehicle ride hailing business, also
called “Robotaxis.”

Negatives and Risk Factors:

 On June 25, 2020, an article in the Wall Street Journal, states “Tesla Falls
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Short in Customer Satisfaction Survey.” Customer satisfaction
problems are an indication of weakness in the “Product.”

Questions:

 As above, although Tesla is the leader in the electric vehicle space, global
mass adoption of electric vehicles is still a long way off. It has been
estimated that it will not happen in the current decade.

 There is still a great deal of developmental work to be done for its electric
automotive, battery, and autonomous vehicles products.

Evaluation:

 For a quantitative evaluation, we assign a score of “3” to Tesla for

its development of products position and strength, where “5” is the

65 Ibid.
66 Tim Higgins, “Tesla Falls Short in Customer Satisfaction Survey,” Wall Street Journal, June 25,
2020, p. B. 1.

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