Strategic Management Topic: Understanding the Strategic Decision Initiated in Tesla Inc

Tesla’s generic competitive strategy is broad differentiation. This generic strategy builds competitive advantage based on the development of products that differentiate the company from other firms in the industry. For example, Tesla Inc.’s products are competitive because they integrate advanced environmentally friendly technology, considering that the vast majority of automobiles today use internal combustion engines.

Strategic Management
Topic: Understanding the strategic decision initiated in Tesla Inc.
Word Count: 3106

Company Introduction
Tesla Motors is a car manufacturing company located in California in the United States of
America. Its area of focus is on the production of electricity-powered vehicles, solar
equipment, and lithium batteries. The company seeks to manufacture automobiles that
meet the price and quality demands of the common customer. Many car-manufacturing
companies such as the Audi A3, Lexus IS, Mercedes-Benz E-Class, and BMW 4 Series among
others have focused on high-end vehicles, a strategy that leaves out the average clients
unattended to, owing to their financial constraints and consequently the need for cheaper
maintenance costs. Tesla Motors’ boss, Elon Musk, identified this gap and decided to
produce automobiles that were reasonably priced to capture this class of customers.
The strategic decision.
In 2019, Tesla took a major leap in expansion when CEO Elon Musk announced a massive
electric car plant in the heart of European auto manufacturing, Germany. This fourth
‘Gigafactory’ in Berlin was Tesla’s first major factory in Europe, with operations already on,
in Nevada, New York and Shanghai. According to Thomas Hogg (Reference), in addition to
being a brand itself, Tesla’s competitive advantage is also due to its superfast charging
stations, economies of scale for batteries, and software expertise. Tesla states that their
Gigafactory is expected to be the world’s most advanced high-volume electric vehicle
manufacturing facility to develop new batteries, in addition to being an ideal work
environment; Hogg reinforced it as being a good move (Reference).
Tesla has some major expansion and production plans for this factory, however the “human
factor” seems to cause a lag in its plans, as Tesla is looking for highly skilled employees from
around the world to relocate. Hogg pointed out that Tesla is facing delays in its recruitment
program due to the difference in legislation between the U.S. and Germany, and problems
with the union. Further, despite being an incredible brand, the possible work environment,
and risk of “being hired and fired” adds to the cons for skilled potential employees
considering the job (Reference).
As per Hogg, the German electric car market performs well, and the German model is based
more on tradition, performance, and quality. Customer loyalty plays a significant role in the
German electric market as well, as studies show Germans prefer to buy local, and support
their home economy (Reference). Tesla’s decision of strategically placing a factory in
Germany adds to the decisions German customers get to make, as the product origin plays a
huge role for local consumers there.

Tesla Generic Strategy.
Tesla’s generic competitive strategy is broad differentiation. This
generic strategy builds competitive advantage based on the development
of products that differentiate the company from other firms in the
industry. For example, Tesla Inc.’s products are competitive because they
integrate advanced environmentally friendly technology, considering that
the vast majority of automobiles today use internal combustion engines.
In using this generic competitive strategy, the company broadly attracts
all potential customers, who are now increasingly interested in
environmentally friendly products. Initially, Tesla used differentiation
focus as its generic strategy for competitive advantage. In applying the
differentiation focus strategy, the company emphasized the uniqueness of
its products, but also focused mainly on early adopters in the high-end
market for electric vehicles. These early adopters are affluent customers
who have a high tendency to purchase newly introduced products.
However, now that the company is already popular and production costs
are declining, Tesla’s generic competitive strategy has shifted to broad
differentiation. The declining production costs and increasing brand
popularity enables the company to broadly target customers in the
automobile market.
Internal and External Analysis.
This report will critically analyse Tesla’s decision to expand to the German market from the
United States both internally and externally. To make an external macro-environment
analysis, PESTEL framework will be used. Furthermore, Porter's Five Forces Framework will
be used to analyse the external microenvironment. The internal analysis will be investigated
in terms of a financial ratio, capability, CSR claims, and marketing mix. Additionally, the
value chain analysis will be used. To explore overseas opportunities, CAGE framework and
Hofstede Model of Cultural Dimensions will be used. Opportunities and Potential Problems
and Suggestions is mentioned towards the end of this paper.
External Analysis (Macro Environment)
PESTLE
Political
The electric vehicle industry that Tesla competes in has a very political friendly climate
(Thomas and Maine, 2019). Renewable energy technologies have been boosted by

numerous government programs throughout the last few decades. In the United States
purchasers of electric vehicles can qualify for up to a $7,500 tax credit for buying an electric
vehicle (Doll, 2021). However, in 2018, Tesla sold its 200,000 cars under the credit program
and as a result the tax credit will be phased out to zero in 2019 for Tesla car purchases.
Additionally, the European market offer incentives for people to purchase electric vehicles
(Kavanagh, 2021). As demand for renewables and climate change concerns continue to grow
it is likely that governments of these countries will continue their current incentive
programs. Expanding free trade agreements open opportunities for Tesla to grow its
operations internationally. Therefore, Tesla can increase their sales in environmentally
friendly European countries as these countries’ governments provide more incentives to
encourage Tesla to sell more cars there.
Economic Ö
ztürk and Suluk (2020) found that the United States growth rate was %4,1 in 2000 and
%2,9 in 2018. However, they also found that the growth rate decreased between 2008 and
2009 due to the economic crisis in the world in 2008, but the country was recovered after
2009. Therefore, they concluded that exiting from the economic crisis gave strategic
opportunities to grow gradually and consistently as a country. Baker, Farrokhnia, Meyer,
Pagel and Yannelis (2020) stated that COVID-19 virus has affected all economies all over the
world since the beginning year of 2020, and we have started realising the full impact of
household and national level. Interestingly, they also found that COVID-19 virus has
provoked in spending, and the demographic characteristics like and family structure affect it
but it is not an income level. ‘MarketLine Industry Profile: Hybrid & Electric Cars in United
States’ (2020) revealed that electric and hybrid vehicles market grew by 14% in 2019 and
reached $30,039 million value in the United States. It is also estimated that this market will
reach a value of $46,157.2 million in 2024. In other words, it is an increase of 53.7% since
2019. Despite these, the adoption of electric vehicles (EVs) is still low, but the market
remains concentrated, which means that the competition remains strong (‘MarketLine
Industry Profile: Hybrid & Electric Cars in United States,’ 2020). Moreover, Crain (2012)
stated that many states offer their incentives, and if those inducements do not apply, the
electric vehicles market would still small and not grow. Therefore, although COVID-19 virus
affects the countries of economies, the spending is increasing regardless of the income level
of people. Overall, all these show that there is a huge potential for Tesla in terms of growth.
Technological
Tesla is no stranger to technological advancements and development. Looking towards the
future the next big disruptor to the automotive industry is going be full self-driving cars.
Tesla is on the leading age of self-driving car technology and is continuing to develop its self-
driving car software (Cusumano, 2020). As of now Tesla’s autopilot system is just meant to
be an assistant to the driver. However, Tesla’s end goal is to have a self-driving car that is
safe for passengers to ride in. Other companies such as Uber, Google, and even Dyson have
invested money in self- driving cars as well but does not have the infrastructure to produce
on a mass scale as Tesla has. Additionally, the high rate of technological change presents
opportunity for Tesla to enhance its products’ technologies accordingly (Kissinger, 2016).
However, the increasing popularity of online B2B platforms and marketplaces have also

given increased opportunities to the car industry that, in turn, have increased efficiencies
and reduced costs.
Social
Claudy and Peterson (2014) suggested that public initiatives should pay attention to the
effects of cultural values and psychological influences while promoting sustainable
consumption. However, one of the psychological barriers is a range for electric mobility
systems, but this cannot be dismissed when customers deciding environmental utility and
pricing issues (Franke et al., 2012). Consumers have many good reasons for buying electric
vehicles (EVs) when they believe these match their values and beliefs (Qian and Yin, 2017).
Yet, Krause et al. (2013) found that (75%) of responders out of 2302 adult drivers in 21 of
the largest cities in the United States were underestimated EVs private value or advantages
and (94.5%) of respondents were unaware of the local incentives when purchasing EVs.
Furthermore, EVs were aimed at a luxury market and has not been improved its technology
enough compared to gasoline vehicle technology (Sovacool, 2009). The researcher also
added that EVs are associated with conservatism and femininity (Sovacool, 2009). Other
researchers found that the same result that EVs are associated with femininity and lack of
power (McShane, 1995; Scharff, 1992). Therefore, if Tesla increases the awareness of
incentives and matches with customers values and beliefs, it will have more market share in
the future. Plus, not only aiming at the luxury market but other markets could increase
reaching more customers.
Environmental
Vinuya, DiFurio and Sandoval (2010) found that Gross Domestic Product (GDP) per capita
and the population growth in carbon emission across the US were increased by increasing
energy efficiency, using fewer fossil fuels and lowering emissions past 15 years. Auffhammer
and Steinhauser (2012) found that 5.6% of lower carbon dioxide emission in the US is
predicted as compared to the average from the IPCC Emission Scenario Database for 2010.
For example, Kansas City was set a goal for reducing carbon emission by 70% by 2020 (Cho,
2018). Cooney, Hawkins and Marriott (2013) suggested to policymakers that they should use
electric buses to reduce carbon dioxide (CO2) emissions, and researchers found that these
buses are only preferred in eight states across the US. Onat et al. (2017) revealed that when
they compared market penetration projections with state efficiency scores, California
develops sustainable transportation systems in excellence and this could generate more
environmental and economic benefits for society. Therefore, it can be concluded that if the
government, in this case, state, follows good environmental practices such as supporting
electric vehicle use, they can reduce carbon emission, increase GDP per capita, provide
better transportation and have a positive economic and environmental return. Overall, Tesla
will get benefit from it.
Legal
Tesla has opportunities to safely grow its business overseas, considering expansions in
international patent law; free trade protocols also help Tesla to emerge in international

markets. However, dealership regulations are causing problems as Tesla expands the
domestic market (Kissinger, 2016).
External Analysis (Micro Environment) PORTERS
Power of Customers
Tesla might have a lot of early adopters. More than 3,000 people had paid a $5,000 deposit
to buy the Tesla Model S, which is the first premium model electric sedan on the market,
without the first one hasn't even been built (Ramsey, 2013) Similarly, when the Model 3 car
was launched by Tesla, 180,000 people paid a deposit to buy it, which were not delivered as
expected and took more than a year (Burke and Wayland, 2018). Furthermore, researchers
also stated that customers waited on the reservation list for upto three year to take their
new cars, due to slow production of Tesla's Model 3. Tesla’s customers paid 4.6% of their
estimated monthly income, in other words, they paid $818 a month for their cars (Anon,
2018). Moreover, according to a survey conducted in USA, more than 32% of respondents
knew about Tesla, and 40% of them stated Tesla represents the future of electric vehicles
and their cars are innovative, stylish, and environmentally beneficial (Long, Axsen, Miller
and Kormos, 2019). Therefore, Tesla can use early adapters, the good income level of
customers, and present being a market leader, as competitive advantages to gain more
market share and increase strong brand image even more.
Competition in the Industry
One advantage Tesla has is that their cars are sold directly to customers, however, General
Motors sell their cars on a dealership model (Hull, Welch and Higgins, 2016). One of the cars
of General Motors, Chevy Bolt, was expected to be seen in showrooms in 2017 to compete
with Tesla's Model 3, and customers were given a choice to buy it in at the end 2017 (Alissa
Williams, 2015). The largest automaker in the United States, General Motors, was
announced rolling out 20 new all-electric models plans by 2023, which two of them will be
delivered within 18 months (Jenkins, 2017). In 2019, NIO Inc. announced a new electric SUV
coupe car to compete against Mercedes-Benz and Tesla Inc. electric vehicles (Tesla
Competitor NIO Launches Another SUV in China, 2019). There it is quite clear that there is a
lot of competition between car companies, however, Tesla still has a strong brand image
and high-quality cars, which bring competitive advantages against rivals.
Threat of New Entrants.
Getting started in the electric vehicle industry is not an easy task, especially for a startup. If
you take Tesla for example, it has taken the company over 15 years and billions of dollars of
debt to get to where the company is today, and they can still barely turn a profit (Jones,
2021). Therefore, the likelihood of another electric car company starting up in the United
States is slim to none. Outside of the United States it is more possible to find startups in the

electrical car industry especially in China and Europe, but it will take them years to catch up
to Tesla. Tesla’s biggest threat of new entrants comes from existing car companies such as
GM, Fiat-Chrysler, Audi, Ford, and other well-established car manufactures deciding to enter
the market as electric cars become more popular and feasible (Li et al., 2018). In Germany
alone it is estimated that car manufactures will invest over $45 billion in electric car
technologies over the next three years (Behrmann, 2019) Given these factors the threat of
new entrants is medium.
Threat of Substitutes.
The threat of substitutes to Tesla in the automotive industry are moderate because of
alternatives offered by competitors, as well as public transportation. The cost to switch from
one vehicle manufacturer to another, or to choose public transportation as an alternative is
low. Additionally, competitors offer other electric/hybrid models with varying price ranges
that also perform well (Sierzchula et al., 2012).
Bargaining Power of Suppliers:
Tesla works with numerous suppliers to produce its vehicles. Pressuring suppliers for lower
prices was a part of GM and Chrysler’s strategy when they tried to avoid bankruptcy during
the last financial crisis, as a result many of their suppliers when bankrupt (Goolsbee and
Krueger, 2015). In the electric car industry companies like Tesla control the quality and
quantity of parts that are purchased from suppliers. In 2018, Tesla put on pressure on
suppliers asking for them to refund Tesla for past payments made on parts and to negotiate
lower prices for future contracts (Higgins, 2018) Suppliers are usually well established into a
car manufacture’s supply chain and parts are custom produced for the manufacture making
it impossible to sell them elsewhere. It is evident that car manufactures have more power
over suppliers than suppliers do over the car manufactures, making the bargaining power of
suppliers low.
Internal Analysis of Tesla
Value Chain Analysis:
Manufacturing
Tesla not only manufactures cars in the US but also expand it through international
manufacturing, hence they opened a new manufacturing site called “Gigafactory” and
continues to expand services and infrastructure globally. (Tesla Inc., 2019)
The first factory, Fremont Factory in California, contain many manufacturing operations
such as vehicle assembly, and Battery packs and drive units for Model S and Model X are
produced there (Tesla Inc., 2019). Integration of battery material, cell, module and battery
pack production is made in Gigafactory Nevada facility (Tesla Inc., 2019). Gigafactory New
York is where Tesla develops and produces any kind of solar-related products and
components and Supercharger components (Tesla Inc., 2019). Gigafactory Shanghai was
opened in China to reduce transportation and manufacturing costs and decrease import

tariffs into China from the U.S (Tesla Inc., 2019). Gigafactory Berlin is the new factory in
Germany will be open soon (Tesla Inc., 2019).
Marketing
Marketing Mix:
Product
Tesla cars are designed to maximise safety and deliver high driving satisfaction and
convenience. Therefore, it promises driver and passengers safety, good product quality
and high customer satisfaction by reaching a high level of brand equity. Moreover, Tesla
produces high-tech and premium segment electric cars, namely, Model S, Model X, and
Model 3 (Tesla Inc., 2019). Furthermore, Tesla emphasises technology, quality and
design on its products, and make them from sustainable products. Additionally, Tesla
makes a lot of investment in research and development (R&D) to make its products more
efficient, safe and convenient. 2
Place
Tesla has branded brick and mortar and galleries, which many of them are located in
shopping malls, internationally. Additionally, the company has a well-designed website
that shows what customers want. Customers can find on a website about Tesla vehicles
energy storage, solar panels and location of physical stores (Tesla Inc., 2019). Therefore,
Tesla buyers can reach the brand via online and offline channels. Moreover, Tesla has on
its supercharger network throughout North America, Europe and Asia to allow customers
to make long-distance trips (Tesla Inc., 2019). Those supercharging stations are located
nearby highways that other car drivers can see it. Therefore, this helps the brand to
reach more customers and it differentiates it from competitors.
Price
Tesla follows a premium pricing strategy as it manufactures high-tech and premium cars
(Tesla Inc., 2019). Customers pay more for Tesla car technology and ecology. Hence,
company innovation and product design play a crucial role in pricing strategy.
Promotion
Tesla uses many promotional techniques to reach customers such as direct marketing,
sales promotions, public relations (PR), personal selling, and the most important viral
marketing (Tesla Inc., 2019). For example, Tesla has many stores that are strategic
located to allows them to reach more customers. Tesla uses social media and forums to
promote brand and products and writes a blog. As part of its PR activities, Tesla
publishes media releases and writes the brand name Tesla on supercharging stations
(Tesla Inc., 2019). Therefore, Tesla created a marketing strategy that is based on product
quality and efficiency. Interestingly, Tesla is not to use billboards or ad agencies to make
promotion. More importantly, the CEO Elon Musk can be a public figure that he shares
new product releases and updates to fans, generally, early adopters via Twitter. Thus,
this supports word of mouth marketing and allows the company to help to operate a zero
advertising budget.
Although Tesla marketing strategy is unconventional, it can attract extensive media
coverage at the global scale, so Tesla can increase the level of brand awareness at a global
scale.
Service and Distribution

Tesla does not use the dealership model, which means that Tesla does not have
independent dealer networks, but Tesla has stores and service centres to sell our vehicles
directly to consumers (Tesla Inc., 2019). However, Tesla faces difficulties in delivering and
servicing at high volumes to international markets. For example, Tesla had the challenge to
deliver model 3 to China and Europe in the first quarter of 2019 (Tesla Inc., 2019).
Therefore, Tesla opens “Gigafactory” to overcome the logistic problem.
Impact
The head of the German Association of the Automotive Industry (VDA) expressed that they
sincerely welcome Tesla to Germany, stating that it is good for the business location, and
shows its high competence. Further stating that as Germany is Europe’s leading producer of
electric cars, many suppliers would benefit (Reference). Germany’s Economic Minister Peter
Altmaier also corresponded, expressing that Tesla’s investment would "enhance Germany's
status as an automobile industry location on an international level", and is a “milestone” for
the expansion of electric mobility and the production of battery cells in Germany
(Reference).
Volkswagen CEO Herbert Diess welcomed Tesla as a healthy competitor that would make
Germany better and more innovative, describing Tesla as a key driver of various
technological aspects of an electric vehicle (Reference). However, Jü rgen Pieper, a
Frankfurt-based analyst asserts that Elon Musk is doing what no other foreign car maker has
done in decades, given the high wages, powerful unions, and high taxes in Germany, saying
he is going where his strongest competitors are (Reference). Consequently, Tesla is able to
not only access Germany’s expensive by highly qualified workforce, but also benefit from
the ‘Made in Germany’ tag that carries significant weight in the premium car market, and
can be used to one-up auto companies in that region.
While there are those that see Tesla’s expansion to Berlin to have a positive impact, Henrik
Böhme (Reference) says this must be seen as a declaration of war, as it begins a race for
supremacy of the electric car in the country it was invented in. Christian Hochfeld, head of
clean mobility think tank Agora Verkehrswende (Reference) says Tesla now gives German
carmakers a run for their money, under the pressure the accelerate their shift to green
mobility.
Country selection

The first reason this decision was suitable is that German engineering is excellent and high-
skilled people live in Berlin according to CEO Elon Musk (Kolodny, 2019). Hence, Tesla can
hire talented workers and engineers in Germany to expand and innovate their business. The
second reason is Volkswagen and Daimler, which is the two of the world’s largest
carmakers, are located in Germany (Browne, 2019). This helps Tesla to make co-operation
with those companies and produce electric vehicles (EVs) and powertrain components. The
third reason is that the German government supports and promotes to buy EVs, and they
are increasing incentives from 4,000 euros to 6,000 euros (Rogers and Delfs, 2019).
Geographic Distance- Physical Distance
Tesla’s main electric cars production site is located in Fremont, California, US (Tesla Inc.,
2019). To reach customers in Germany, Tesla would need to export cars from California to
Germany. It is not ideal to transport cars with such distances and time in between 5,629.66
mi (9,060.07 km) according to Distance California Germany (n.d.), hence making it beneficial
to have a production site (Gigafactory) in Germany (Tesla Inc., 2019).
Another key impact is the time difference between California and Germany. German time is
9:00 hours ahead of California, therefore without having a local factory in Germany/Europe,
it can be hard to reach business contacts in Europe. In fact, support teams in California may
not find the right to talk to them outside their work hours. As a result, communication is
slowed down without having a factory in Europe.
Long Term Orientation
According to Hofstede Insights (n.d.), using the Hofstede Model of Cultural Dimensions
(Hofstede, 1984), Germany is a pragmatic country, with a high score of 83 out of 100, where
people can adapt to change easily, and they believe that time, situation and context are
dependent. Additionally, they have a strong tendency to save and invest. With this
pragmatic approach, they tend to encourage thrift to prepare themselves for the future
(Hofstede Insights, n.d.). Therefore, in this case, if people who live in Germany can adapt to
change, Tesla can use this aspect to sell more cars in the German market.
Individualism
German society is categorised as an individualist by a score of 67 (Hofstede Insights, n.d.).
People live in small families, and they pay attention to a parent-children relationship
(Hofstede Insights, n.d.). They believe that honesty is the most important thing in
communication even if it hurts (Hofstede Insights, n.d.). Furthermore, the United States has
calculated 91 scores in individualism (Hofstede Insights, n.d.). Hence, Tesla, US-based car
company, cannot use the same approach as it is doing in the US market when entering the
German market to be successful.

Challenges Potential Problems
As it was mentioned in geographic distance part of the article, distance and time zone
difference could be a problem in the future when entering the German market. Teams may
not communicate effectively. However, Tesla can solve this problem by opening new
headquarter in Germany for European markets. In this way, Tesla teams can communicate
and identify future problems very effectively and efficiently. More importantly, Tesla
marketing team can communicate customers better as we can understand their problems
very well. Due to language differences, the Tesla marketing team in the US may not apply to
the same copy and Tesla advertisements because the meaning of the same copy may be
different in terms of meaning. Therefore, Tesla should hire on-site native German marketers
that can communicate customers better.
As it was mentioned in Cultural Distance part of the article, if German people have
tendencies to save and invest (Hofstede Insights, n.d.), Tesla can emphasise its sustainability
aspects in selling Tesla cars and solar panels. Moreover, Tesla can also draw attention to
families since German people stress on the parent-children relationship a lot (Hofstede
Insights, n.d.). However, Tesla should not emphasise more as it does in the US market.
Economy minister Peter Altmaier called Tesla's announcement in late 2019 a "milestone" for
the roll-out of electric mobility and the production of battery cells in Germany. He said the
investment will "enhance Germany's status as an automobile industry location on an
international level."
Challenged:
"The German Association of the Automotive Industry (VDA) explicitly welcomes that Tesla is
coming to Germany. It's good for the business location and shows its high competence," VDA
head Hildegard Müller told a conference in early 2021. "Many suppliers will benefit. We're
leading Europe in the production of electric cars," she added.
"You can hardly think of another investment that would be more useful to the car nation
number one," Volkswagen CEO Herbert Diess said in a social media post in early 2020. "From
battery cells and electric vehicles to the digitalisation of the car and autonomous driving -
Tesla is a key driver. Volkswagen AG welcomes the new neighbourhood, because it makes it
easier for us to create the German ecosystem for the automotive engineering of the future."
He added: "That kind of healthy competition makes Germany better and more innovative."
“Elon Musk is going where his strongest competitors are, right into the heart of the global
auto industry,” Jürgen Pieper, a Frankfurt-based analyst with Bankhaus Metzler, told
Bloomberg in early 2020. “No other foreign carmaker has done that in decades given
Germany’s high wages, powerful unions and high taxes.”

“Locating the plant in Germany gives Tesla an expensive but highly qualified workforce,"
said automotive analyst at GlobalData Calum MacRae in late 2019. “There is a huge amount
of value in the automotive manufacturing and supply chain clustered on Germany that Tesla
can draw upon, and the ‘Made in Germany’ tag still carries significant weight in the
premium car market.”
"The Berlin location serves two unique goals," said Gene Munster, managing partner at
venture capital firm Loup Ventures, in late 2019. "It's strategic to lure German automotive
talent to Tesla, and it's a statement that Elon wants to one-up auto companies from that
region."
Tesla's decision is "a huge gain for the mobility transition and the transformation of the
German car industry,” Christian Hochfeld, head of clean mobility think tank Agora
Verkehrswende*, told Clean Energy Wire in 2019. "Tesla puts German carmakers under
pressure in the shift to green mobility and will give them a run for their money."
"Musk's decision to build a plant in Germany must be seen as a declaration of war. … Tesla's
decision to produce cars in Germany means the race for electric car supremacy is now
underway in the same country where the car engine was first invented," Henrik Böhme
commented on Deutsche Welle in 2019.
"The e-car pioneer long laughed at by German competitors is attacking Volkswagen, Daimler
and BMW head-on on their home market - as a producer, employer, engineer," wrote
German mobility newsletter Tagesspiegel Background in 2019.
Conclusion
Although there can be differences between US and German culture, there are many
similarities too (Hofstede Insights, n.d.). If Tesla pays attention to those details, it can be
successful in the German market because Tesla has a high brand image and high brand
loyalty in the US market (Tesla Inc., 2019). Therefore, Tesla should continue what it did so
far, and get foreign direct investment to gain competitive advantages in the German market.

References
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