Alphabets ‘e’ and ‘t’ in italics after page number indicate ‘exhibit’ and ‘table’, respectively.
AC Propulsion, 1
angel investor, 67
battery, 22
lithium ion, 17, 20
technology development in, 17–19
brand capital, 5
business strategy, 28
and competitive advantage, 28–29
and economic profit, 29
and profitability, 28
capability portfolio, 22, 25
capital projects, 34, 36, 39, 43, 72, 97, 105, 109
and costs, 107
goal of, 97
and hurdle rate, 72
management of, 40
and organizational breakdown structure (OBS), 105
and project charter, 100–101
project lifecycle, 113
schedule delays in, 106
strategic concern of, 98
capital risk
liquidity risk, 32
principal risk, 32
return risk, 32
corporate governance, 65, 66. See also decision-making, executive
angel investor, 67
and communication, importance of, 65
decision-making flaws, reasons for, 70–71
economic interpretation of, 69
and effect of initial public offering (IPO) on private capital, 67–69
and free cash flow, 77
and herding behaviour, 75
hurdle rate and decision-making, 72
information asymmetry and decision-making, 69–70,
73, 76
and insider ownership, 73–74, 78
and managerial compensation issues, 78–79
pre-IPO vs. pot-IPO
expectations, 68
private capital, 67
and role of board of directors (BOD), 69, 70, 73, 74,
75, 76
role of managers in, 71, 72, 73
corporate management. See also corporate strategy; project communication
measures of success
capital cost and risks, 31–32
discount vs. hurdle rate, 33
free cash flow, 33–34
opportunity cost of capital, 32–33
return on investment (ROI), 31
vs. project management, 30–31
corporate portfolio, 16, 25, 28, 30, 31, 34, 69
and financial portfolio, 16, 30
vs. project portfolio, 34
corporate strategy, 25, 90, 106. See also decision-making, executive
vs. business strategy, 28
and capabilities, 25
and communication management, 65
and public equity, 68
and shareholder wealth, 29–30, 73
and technology innovation, 52
corporation, 25, 28, 30, 32, 92
characteristics of, 25
decision-making, executive
anchoring effects in, 83
cash flow bias, 86
commitment to failure, effect on, 88–89
expense vs. investment on, 87–88
framing effects in, 83, 84, 85
inductive fallacy in, 82
judgement default, 81
managerial bias in, 81
role of inflation in, 84–85
discount rate, 33, 84, 85, 86,
92, 107
discounted cash flow (DCF), 36
earned value management (EVM), 107–108
purpose of, 107
Eberhard, Martin, 1, 3
economic profit. See economic value added (EVA)
economic value added (EVA), 29, 32, 37, 51, 97, 98, 107, 110, 119, 135
electric vehicle (EV), 1, 3, 4, 5, 7, 10, 12, 17, 20, 53, 82, 121, 122, 127
Ford, 1, 7
free cash flow (FCF), 33–34, 36, 47, 49, 73, 77, 79, 86, 97, 102, 107, 135
and discounted cash flow (DCF), 36
vs. operating cash flow, 34–35
General Motors, 1, 7, 8
hurdle rate, 33, 72, 92, 107
inductive fallacy, 82
industry lifecycle (ILC), 52, 55
as a management framework, 53
phases in, 53, 54t
and principal-agent theory, 70, 80, 88
and product lifecycle (PLC), 53
and technology innovation, 52, 52t
internal corporate venturing (ICV)
and external collaboration, 59–61, 60t
goal of, 56, 57
meaning, 56
objectives, 57
organizational structure, 58t
risks in, 58
mainstream segments, 29
Model 3, 7, 8, 10, 13
Model D, 7
Model S, 5, 6, 7
Model X, 5
multicriteria assessment (MCA)
criteria for, 49, 50–51
importance of, 48
planning process in, 50
scoring factors and targets in, 51t
Musk, Elon, 1, 2, 3, 4, 7, 11, 12, 24, 28, 50, 54, 67, 73, 75, 80, 121
operating projects, 34
pioneer markets, 29
price point, 14
principal-agent theory, 70
private capital, 67
product life cycle (PLC), 53
project communication
and documentation, 66
formal communication issues in, 66
importance of, 64
issues with, 65
role of bureaucracy, 66
project management
as an organizing principle, 92
constrained nature of projects, 97–98
definition of a project, 96
earned value management (EVM), 107–108
and functional organization, 93–94
and matrix organization, 95–96
plan, 102, 103
PMI and capital project finance, 91
and project charter, 100–101, 103
and project cost, 107
project deadlines, 97,98
and project integration, 99
and Project Management Institute (PMI), 91
project quality management, 108–110
project scope statement and project lifecycle, 103, 113
project scope, 102–103
project uniqueness, 97, 109
and pure project organization, 94–95
resources management, 110–111
and risk management, 100, 113–118
and schedules, 105–106
statement of work (SOW), 101
supply chain in, 118–119
work breakdown structure (WBS) and project deliverables, 103–105
Project Management Body of Knowledge (PMBOK), 39, 66, 91, 101, 102, 108, 113
and Project Management Office (PMO), 39
Project Management Institute (PMI), 43, 47, 91, 110
and project definition, 96
and Project Management Professional (PMP), 91
Project Management Office (PMO)
as a management structure, 40
definition, 39
project portfolio management (PPM), 40, 41
purpose of, 41
roles and responsibilities of, 41e
project portfolio management (PPM), 40
project portfolio, 31, 39
multicriteria assessment in, 48–51
and project portfolio management (PPM) capability, 40–41
proposal appraisal
evaluation, 47
implementation, 47
post-completion audit, 48
project estimate and cash flow, 47
proposal screening, 47
selection, 47
proposal development, 43, 44e
and technology innovation, 52
project risk management
objective, 114
probability matrix in, 117t
risk definition, 113
risk dimensions in, 116
project stakeholder, 29, 30, 63, 65, 66, 73. See also project communication
return on investment (ROI), 31
cash inflow vs. cash outflow, 31, 32, 34
Roadster, 2, 3, 4, 26, 49
Smith, Malcom, 1
SpaceX, 2
strategic management, 15.
See also corporate
strategy; project communication
economies of sale, 21
and exemplary corporation, 25
hedging as a strategy, 21
importance in business, 15
of supply chain, 25
of technologies, 24
product market vs. organization competencies and
capabilities, 22
and technology development, 16–17, 18, 19, 21
and technology innovation, 52
timing of technology development, 22
Tarpenning, Marc, 1
technology innovation, 52
Tesla Motor Inc., See Tesla
Tesla, 1, 2, 8, 10, 12, 13, 20, 24, 28, 40, 53, 63, 80, 85, 121
battery issues, 6, 122
capital issues, 10–11, 12, 124
contracting risks, 130, 132
cost issues, 122
electric vehicles, issues with, 1–2, 122
hybrid cars, 8
inception days, 1–2
initial public offering, 4
Model 3, 7, 8, 10, 13
Model D, 7
Model S, 5, 6, 7
Model X, 5
procurement risks, 125–128
production issues, 3, 4, 5, 10
range issues, 6, 122
and Roadster, 2, 3, 4, 26, 49
supply chain, 5–6, 125
technology risks, 19, 130
Tesla Semi, 25–26
U.S. Securities and Exchange Commission (EC), 12
Wright, Ian, 2