Tesla has indeed been doing pretty well since the time of the case (2013).

1. Tesla has indeed been doing pretty well since the time of the case (2013). Their Model S sedan has been selling well and they have expanded their lineup with an SUV (Model X). In only a few years, they will also start selling a more affordable, high-volume car (Model 3).What drives this success from an internal perspective – discuss what you think are the two most significant capabilities Tesla possesses and whether they pass the 4 requirements (rare, valuable etc.), suggesting core competencies and competitive advantage. Please list the rest of their capabilities.Part of that success, however, may be due to relatively benign competition – beyond mostly cheaper and smaller hybrids/electric vehicles and with the exception of Henrik Fisker’s KARMA that quickly fizzled, nobody is currently making an all-electric luxury sedan. But that is about to change. BMW recently introduced the i3 and i8 and is likely working on a sedan while Porsche promised an all-electric sedan by the latest 2020 (see article, http://blog.caranddriver.com/its-on-like-elon-porsches-mission-e-electric-sedan-headed-to-production/).Briefly outline what resources and capabilities these much larger automotive firms have that Tesla may be lacking.2. Tesla is building a battery factory in Nevada with an enormous capacity far exceeding current and, some say, also exceeding future battery demand. Explain why you think Elon Musk is pursuing this factory and how it plays in with Tesla’s overall strategy.3. What can you say about Tesla’s chances based on your analysis and answers to the above questions – will they continue their success and develop into a profitable firm or will they face an increasingly difficult future, potentially including bankruptcy?