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The Impacts of Digital Transformation on Firm Performance: A Case Study of Tesla Business Model

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  • Loo Yew Liang

    (Institute of International Education, New Era University College)

  • Zhu Yubin

    (Institute of International Education, New Era University College)

Abstract

With digital transformation accelerating globally, businesses are undergoing major shifts in competitiveness and sustainable growth. This study investigates the impact of digital transformation on firm performance, focusing on smart product innovation, smart manufacturing transformation, and digital-driven customer engagement. Using Tesla as a case study, survey data from 300 respondents was analyzed using SPSS Version 26 for descriptive, correlation, and regression analysis. Results show that all three digital transformation dimensions positively influence firm performance. Smart product innovation significantly enhances financial performance and brand value, while smart manufacturing improves non-financial aspects such as customer satisfaction and operational efficiency. Digital-driven customer engagement contributes to both financial and non-financial outcomes by boosting customer loyalty and user experience. The study also highlights key challenges such as technology costs, organizational resistance, and data security concerns. These findings offer strategic insights for management, especially in the automotive sector, and provide a foundation for future research in digital transformation.

Suggested Citation

  • Loo Yew Liang & Zhu Yubin, 2025. "The Impacts of Digital Transformation on Firm Performance: A Case Study of Tesla Business Model," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 12(5), pages 287-302, May.
    • Handle: RePEc:bjc:journl:v:12:y:2025:i:5:p:287-302
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    References listed on IDEAS

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