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Tesla AVs require specific and unique parts for its production and Bargaining Power of suppliers being high (RA10), depicts high cost and high impact from delayed shipments from their suppliers overseas. These issues impact revenue and contributes to the net operating loss.
Though Tesla consists of skilled employees from Silicon Valley, staff opposes the idea of the AV implementation after the death of the driver of Model X crash from using autopilot while reading a book+ a pedestrian being killed from self-driving test by Uber technologies Inc. Employees believe the technology is complex (RA23)and infrastructure required isn’t ready yet. Most experts acknowledge that significant technical progress is needed before Level 5 automation (Mervis, 2017). These oppositions hinder the innovation opportunity as there is no trust and believing it would fail.

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Tesla AVs require specific and unique parts for its production and Bargaining Power of suppliers being high. (2019, May 10). Retrieved January 18, 2021, from https://midwestcri.org/tesla-avs-require-specific-and-unique-parts-for-its-production-and-bargaining-power-of-suppliers-being-high/

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