Page 86 - MS Year in Review 2020

Questions:

 How long will Tesla receive “regulatory credit revenue”?

Evaluation:

 For a quantitative evaluation, we assign a score of “3” to Tesla for
its Acquisition and Development of Resources Required to Operate
the Firm.

 Although the current situation is favorable to Tesla, the negatives, risk
factors and questions result in a score of 2 point less than the maximum of
“5.”

Development of Day-To-Day Operational Systems

Positives:

 Tesla has developed some of the infrastructure required to operate.

 It is producing cars, batteries, and solar panels in volume.

Negatives and Risk Factors:

 There are clearly problems in Tesla’s operational systems. Specifically, In
February, 2018, an article in the Los Angeles Times was entitled “Tesla’s
68
Troubles.” It discussed some early problems that are being reported by
“Model 3” owners. Later in the article it referred to “Tesla’s ‘Growing
Pains.’”
69
 On June 25, 2020, an article in the Wall Street Journal, states “Tesla Falls
70
Short in Customer Satisfaction Survey.”

68 Russ Mitchell, “Tesla’s Troubles,” Los Angeles Times. Business, pp.1 and 7, February 18, 2018.
69 Ibid, p. 7; See Eric Flamholtz, “TESLA’S “GROWING PAINS” AND ELON MUSK’S
LEADERSHIP,” Linkedin, March 13
70 Tim Higgins, “Tesla Falls Short in Customer Satisfaction Survey,” Wall Street Journal, June 25,
2020, p. B. 1

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