Tesla Case Innovative Organizations

TESLA

Disruptive Technologies and Innovative Organizations: Tesla

Tesla happens to be one of the most recognizable companies today – mostly owing to its huge bet on clean energy via the design and manufacture of electric vehicles. It important to note that on its website, Tesla states its mission as the acceleration the world’s transition to energy that could be deemed sustainable (Tesla, 2021). This is a worthy cause given that past studies have indicated that from an environmental perspective, fossil fuels continue to wreak havoc in our planet. However, what Tesla has sought to accomplish is not, by any measure, a mean feat. What the company has achieved so far could be attributed to its innovative approach. In this context, the term innovation will be used with reference to the bringing to life of new ideas via the deployment of practical and creative approaches.

From the onset, and perhaps most obviously, Tesla has essentially taken it upon itself to transform the auto industry. This it has done by introducing new ideas/technologies and, in some instances, meshing old approaches with new ways of doing things. Although Tesla is not the first company to design and launch an electric car, it is the first commercial entity to have produced a potent premium sedan that is all-electric and has full-range options. Tesla was able to actualize this goal via sheer creativity and development of solutions to bottlenecks that appeared insurmountable to some. For instance, in addition to deploying capable long-life batteries to power their vehicles, the company was able to rollout a robust fast charging network. Previously, these were considered the most significant challenges for auto companies in their efforts to mass-produce electric cars. These two innovations, according to Bhargava, Boehm, and Parker (2021) left Tesla’s competitors ‘in the dust.’ Indeed, in the words of the authors, customers chose Tesla’s electric vehicles over other electric vehicle models owing to the fact that they could “drive their Tesla for long distances in full confidence that they [could] find convenient locations at which to recharge their vehicle” (Bhargava, Boehm, and Parker, 2021). Thus, we could say that Tesla’s innovativeness on this front made it possible for the company to outcompete other players in the electric vehicle marketplace. This is especially important owing to the fact that the company was up against major players in the market including, but not limited to, Audi’s eTron.

It would also be important to note that there are some who feel that tesla has in some instances deployed innovation with the primary aim of attracting innovation capital. For instance, in the words of Furr and Dyler (2020), “efforts like Cybertruck aren’t really about making money; they are about getting attention and proving Tesla is one of the world’s most innovative companies.” In deploying huge efforts on the innovative front, Tesla is in this case able to attract significant stakeholder support. This is what Furr and Dyler (2020) refer to as innovation capital. The said innovative capital comes in handy on multiple fronts, i.e. in seeking support for future ideas.

In the final analysis, it would be prudent to note that Tesla’s innovative abilities are aided by its commitment to craft a culture that enables the said innovation. For instance, as Kane and Kana (2020) observe, the company has in the past done away with the traditional corporate hierarchy and has appeared to be in factor of a style of management that permits easier flow of information – i.e. in the sense that employees are free to share ideas with top-level managers without having to go through lengthy processes. This means that the company has essentially sought to do away with communication barriers that could stifle innovation. As a matter of fact, as Kane and Kana (2020) further point out, thanks to this enabling environment, “Tesla’s innovations haven’t always trickled from the top” (176). This way, the company is able to access, interrogate, and implement the best ideas.