Operations Insight: Tesla Motors’ disruptive business model

CapGemini Consulting have produced a detailed review of Tesla Motors, the Amercian electric luxury motor manufacturer.  It is subtitled “A Silicon Valley Version of the Automotive Business Model“.  Tesla is described as having developed a “disruptive” business model in order to break into the US automotive industry, based around three things:

  • dealing directly with customers without a car dealership network, albeit it has stores that enable customers to engage and interact with the vehicles (but not be sold to them)
  • extensive used of digital technologies – to design the vehicle, manufacture it, and in the vehicle itself
  • “high-velocity innovation” – creating an organisation which is continually and consistently changing the rules of the game, based on its leadership, vision, and pool of talent.
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