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Powering the Future, Failing the Present? Tesla’s Social and Environmental Costs of Electric Dreams
Loïc Plé
IESEG School of Management, Univ. Lille, CNRS, UMR 9221 - LEM- Lille Economie Management, F-59000 Lille, France
Myriam Degrave
IESEG School of Management, France
Volume 20: 2025, pp. 451-464; ABSTRACT
This case examines the paradox at the heart of Tesla, Inc. – a global pioneer in electric vehicles and renewable energy – whose rapid expansion under the leadership of Elon Musk has triggered a series of ethical, social, and environmental controversies. While Tesla is celebrated for advancing the transition to sustainable energy, it also faces mounting scrutiny over labor practices, workplace discrimination, environmental impacts, and governance failures. Musk’s unconventional management style and growing political influence have further complicated the company’s stakeholder relationships and public image. Anchored in international business strategy, global sustainability, and corporate social responsibility, this case challenges students to assess whether Tesla’s actions align with its mission and with stakeholder theory. It invites critical discussion on the tensions between growth, ethical leadership, and the complexity of managing different institutional contexts in global value chains. The case is designed for undergraduate and graduate courses in international business, ethics, sustainability, and strategic management.
Keywords: ethics, corporate social responsibility, sustainability, labor practices, international business.
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