Therefore tesla should leverage its experience with

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Therefore, Tesla should leverage its experience with new technologies to meet the market trends before its competitors. Adding new revenue streams can ensure profitability during this transition period. Recommendations: Short-term profitability Licensing-out their autonomous driving Al Optimization of the vertical integration strategy o Long-term success Introduction of Level 5 automation vehicles that are focused on shared mobility instead of private ownership Action plan: Licensing-out autonomous driving technology: Software needs to be made compatible with other car models o Implementation of safeguards against copycats: E.g. Combination of hardware and software Optimization of vertical integration: o Close monitoring of Tesla's own production needs for battery packs o Sale of excess battery packs to other car manufacturers (>40% profit margin possible) o Outsourcing production of components to firms
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with more experience (e.g. seats) Introduction of shared- mobility vehicles that generate aftersales revenue: o Lobbying with governments and cities to ensure support of shared fleets o Offering favorable financing options to consumers and institutions to increase the growth rate of shared fleets o Introduction of different levels of vehicle autonomy for different prices Add a comment related to the case analysis and ask 2 questions related to the case.
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  • Fall '19
  • Automobile

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