Tesla's Semi Truck and Regulatory Credits Scheme Case Study

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Tesla ReflectionPart of Tesla’s strategic mission is to pursue a sustainable future for humankind. Currently it does that by producing the Model 3—an affordable EV for consumers. However, because other competitors are also producing more affordable EVs today, Tesla has to strengthen its product line-up in order to stay relevant. It can do that by producing the promised semi-truck EV and by segueing into other areas of transportation, such as trains or planes and bringing EV solutions to them as well. One problem that remains is that there are environmental concerns about mining the materials needed for battery production. As LeBeau (2021) points out, recycling existing batteries is necessary to help reduce the environmental impact of mining that companies like Tesla leave on the world. Tesla should be focused on erasing its carbon footprint on the back-end of production. Today it focuses mainly on the front end of production by promoting its EVs—but damage to the environment has already been done on the back-end through mining the materials needed to create the batteries in the first place. If Tesla truly wants to commit to sustainability, it should work to create batteries that are 100% recycled so that it is a truly carbon neutral company. Thus, the social issue here that affects Tesla’s strategy is whether the company is truly as sustainable as it purports to be. Not being truly sustainable can negatively impact its reputation among consumers and damage its brand appeal.From a biblical perspective, it is important that a company do as it says and commit completely to the vision it projects. It is not enough to talk the talk, especially if others—like former Tesla executive and co-founder J.B. Straubel—can see that Tesla is not really being a truly sustainable company (LeBeau, 2021). The important scriptural verse that applies here is James 2:18-26: “But someone will say, ‘You have faith and I have works.

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’ Show me your faith apart from your works, and I will show you my faith by my works. You believe that God is one; you do well. Even the demons believe—and shudder! Do you want to be shown, you foolish person, that faith apart from works is useless? Was not Abraham our father justified by works when he offered up his son Isaac on the altar? You see that faith was active along with his works, and faith was completed by his works.” In other words, it is not enough to promote faith in sustainability if one is not doing the work necessary on both the front-end and the back-end to ensure sustainability. Tesla’s works should match its faith in sustainability. It needs to focus on creating a battery that is 100% recycled.As Thompson (2020) notes, social issues are important to consumers today, and they are especially important to consumers of EVs. Tesla has talked a great game up to this point, but now the company is being called out by Straubel for failing to live up to the doctrines it preaches (LeBeau, 2021). Works matter, as James points out. A company like Tesla can claim to be sustainable and can claim to promote sustainability, but consumers and competitors will be able to point to the company’s production process and show that it is not truly sustainable. In order to be authentic and committed to its mission, Tesla needs to adopt a strategy of focusing on 100% sustainability by incorporating a recycling program into its production so that it can wean itself off mining completely. From a Christian perspective, it is important that the works match and line up with the faith. Tesla’s faith is in sustainability. Its works should show as much......

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