Tackling Supply Chain Challenges of Tesla Model 3
Lifang Wu
Xavier University, USA
Wei Yang
Long Island University, USA
Volume 11: 2017, pp. 5-34; ABSTRACT
Tesla received 325,000 pre-orders for the Model 3 within one week after the company launched the mass market car in 2016. Despite the fact that Tesla’s stock price went up by 50% in the first half of 2017, Tesla was also the most shorted stock in the U.S. market at the time. To explain the situation, this case presents the entire Tesla Model 3 supply chain in detail, highlighting issues like product design, suppliers, manufacturing, marketing and sales, service, and charging infrastructure. It appears that Tesla’s vertically integrated supply chain has been innovative, but not without substantial challenges.
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