Ch 14 Tesla’s Mergers and Acquisitions
In Jay B. Barney’s text Gaining and Sustaining a Competitive Advantage, he describes the valuation of a target firm, and notes that this value depends on the combined value of the two firms as illustrated by the following equation: P = NPV(A+B) – NPV(A) He goes on to discuss how a bidding war will ensure…
Ch 13 Tesla’s Strategic Alliances
In an article for MIT Sloan, Hoang and Rothaermel attribute Tesla’s early success to two key strategic alliances with Daimler AG and Toyota Motor Corp. These kinds of partnerships can increase market share and sales for both companies by improving efficiencies in the overall production of the goods or services. They explain that the Daimler…
Ch 12 Tesla’s Agency (Non)Issue
Charles Morris points out in his article that unlike GM and Ford whose CEOs only own miniscule fractions of the companies, Tesla CEO Elon Musk owns 21% of the firm. Morris also points out that Musk won’t receive any compensation until Tesla’s market cap exceeds $100 billion, and will receive the entire package only if…
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Global Strategic Analysis of Tesla 