Logan (2011) the first step in Tesla's corporate strategy is to use both online channels and Tesla showrooms. Second, for rival companies to remain competitive with Tesla, they can order patented electric powertrain components to allow the company to speed up the production process. The final step in Tesla's strategy is to inspire other manufacturing companies by showing them that there is market demand and encouraging them to create environmentally friendly vehicles. CLOSED AND OPEN INNOVATION Over the past few years, the high-end technology industry has evolved. the way they pursue innovation and Tesla Motor Inc is no different from this change. Chesbrough (2003) believes that the change has occurred in the shift from closed innovation model to open innovation. The fundamental principles of closed innovation are explained clearly in Figure 1. Closed Innovation Flowchart (Chesbrough, 2003) FIGURE