The New War of the Currents: The Race to Win the Electric Vehicle Market

Abstract

The automobile industry is going through a dramatic change as electric vehicles (EVs) rapidly gain in popularity. Two companies in particular have dominated the EV market over the last decade: Tesla and Nissan. However, Nissan, despite its global presence and production capability, has lost significant market share to Tesla. Going forward, the company's operational and strategic decisions are vital to its success in the EV market. Tesla, on the other hand, has aggressively gained market share over the past decade, becoming the most dominant player in the EV market. The company has taken unique approaches for its supply and operations. Will Tesla be able to scale its operations to meet the rapidly increasing demand for EVs? With other large global automakers now turning their attention toward the EV market, will Tesla and Nissan be able to retain their market shares?This case discusses the approaches taken by Nissan and Tesla with their operational, supply chain, and marketing strategies to become leading EV manufacturers. It also sets the stage for the discussion on whether or not their current approaches will be optimal going forward.

Excerpt

UVA-OM-1709

Dec. 18, 2020

The Race to Win the Electric Vehicle Market

This is not a vehicle that you're going to take 8 people in and drive across the country with.

This is not its purpose. Its purpose is your daily vehicle to use most of the time.

. . .

Keywords: Tesla, Elon Musk, Nissan, electric vehicles, supply chain, climate change, competition, electric cars, General Motors, SWOT analysis, new product development, automobile industry