Subsidizing Tesla Automobiles Globally
*Should have an Intro, body with headings for every question, conclusion and recommendation.
*Use the book attached
*Should have a minimum of 8 references (peer-reviewed) plus the book
*Read the Closing Case: Tesla, Inc – Subsidizing Tesla Automobiles Globally page 610.
Then, answer the following questions:
1. Should companies like Tesla rely on government subsidies in selling their cars since
they are better for the environment than traditional cars based on the old technology of
traditional combustion engines? Basically, should the environmental issues be built into
the competitiveness of the car pricing of electrical cars, or should supply and demand
be the driver of the electrical cars prices?
2. Some governments are more likely to subsidize electric cars (and many other products)
than other governments. Denmark took a stand to not subsidize (for now) electrical
cars. Should such subsidies be up to each country or region in a country (e.g.,
California in the United States), or should there be a world standard enforced perhaps
via the World Trade Organization, United Nations, or a similar organization?
3. Tesla made remarkable sales growthfrom a startup (albeit with great financing) to $7
billion in sales with some $25 billion in assets. Does this mean that the Tesla business model was good and the market reacted positively, government subsidies were generous, and the market favored the car brand because of it, or a combination?
4. If all government subsidies went away worldwide to electrical cars, will Tesla be as
successful in five years as it is now? (Will Tesla even exist in 10 years?)