Among all of the recent coverage of recent Tesla earnings calls, successive Model 3 production forecasts, and CEO Elon Musk’s early August tweet about taking the company private, I think there’s a critical strategic issue facing the company that has not yet been called out, and serious governance challenges which has been discussed but not yet resolved. Without resolving the governance issues, I don’t see how the strategic challenge will ever be properly understood or addressed.
Unfortunately most strategic alliances fall short of their goals, often failing completely. Yet this type of arrangement can be critical to the success of young startups, fast-growing ‘tweeners, as well as established giants. How can smaller companies – the Pigs in our metaphor – avoid the treacherous pitfalls and dramatically increase their chances of success when they engage in critical growth initiatives with larger organizations?