This work come from a group work of Luiss MBA PT 2014/16 edition. It is the analysis of a case of distriptive innovation.

1. Tesla Motors as example of
disruptive innovation (mobility)

2. The context
• Tesla motors tries to innovate inside an industry
with 100-years old traditions, norms and processes
• He based his head quarter inside the Silicon Valley
• The founder is Elon Musk which founded also
(Paypal , SpaceX)
• On mid-June 2014, the company has released all of
its patent holdings, claiming that open-source
innovation is more powerful than anything one
company could do individually.

3. Technical differences
• The car core is the center 17-inch touch screen
infotainment system which became an industrial
benchmark.
• The technical specifications are impressive ( the
state of art of technology)
• The system runs a Linux-based operating system
• It include a 3G modem. It can receive software
updates by OTA.
• In addition, a 12.3-inch fully digital instrument
cluster sits directly in front of the driver with its
own NVIDIA Tegra 2 processor

4. Manufacturing difference
• How can Tesla sell this as a standard feature in every Model S?
• The company chose to change up the supply chain and borrow from the
electronic manufacturing services (EMS) model of production that is
standard practice in the consumer electronics industry
• Tesla is closer to being a technology company than a traditional automobile
maker
• This model required Tesla to internalize much of the hardware and
software development, as well as the systems integration work
• The Silicon Valley culture and the EMS approach to manufacturing were a
clear advantage for Tesla at one time but no longer make it unique

5. • The possibility to update software and firmware by OTA
• Consider Tesla’s recall of the Model S for overheating charger plugs in January 2014. The
day the recall notice came out, Tesla had all 29,222 Model S vehicles updated wirelessly
and running the new safer version of the software.
• Traditional automaker with the same problems have to take their car into a dealership for
a software update.
• Since some years to biggest cost problem could became the software recalls while now is
the volume.
Service differences

6. Powertrain difference
• Electric motor
• The fuel is a microprocessor-controlled lithium battery
• Each vehicle comes with a single 10kW charger and
mobile connector with adapters for 110-volt and 240-volt
outlets as well as a public charging station adapter.
• Tesla has made a significant investment developing
charging stations in the US (112 to date, according to the
Tesla website), Europe (63), and Asia (17)
• Tesla is working to drive battery costs down in anticipation
of the launch of its mass-market, $35,000 Model 3 EV
sedan, which is slated to debut in 2017