In 2018, California-based Tesla Inc. (Tesla) appeared to be gaining momentum after a series of setbacks in producing its Model 3 car for the mass market. Tesla’s partnership strategy, led by founder and CEO Elon Musk, was key to its success, but Tesla did not appear to be successful as an independent company. It continued to dominate a small portion of all vehicle sales, did not master mass production techniques, and had not solved its sales dilemma by obtaining permission to bypass the network of car dealerships in the United States. Tesla would continue to need partners to grow even if the nature of its partnerships changed. The challenge was to define Tesla’s partnership strategy in the short and medium term.
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