Logan (2011) the first step in Tesla's business strategy is to use both online channels and Tesla showrooms. Second, in order for competing companies to remain in competition with Tesla, they can order patented components for electric powertrains to allow the company to speed up the production process. The final stage of Tesla's strategy is to inspire other manufacturing companies by demonstrating that there is demand in the market, and inspiring them to create environmentally friendly vehicles. CLOSED AND OPEN INNOVATION The high-end technology industry has evolved the way they seek innovation in recent years, and Tesla Motor Inc is no different to this change. Chesbrough (2003) believes that the change occurred in the transition from the closed innovation model to open innovation. The fundamentals of closed innovation are clarified through Figure 1 Closed Innovation Flow Chart (Chesbrough, 2003) FIGURE