181k views
2 votes
Considering the dynamics of financing change and changing finance, should Triodos consider investing in Tesla, as presented in Case 7 - 2238 from IMD, 2020?

1 Answer

5 votes

Final answer:

Triodos should consider investing in Tesla, aligning with its ethical and green investment values, while recognizing the supportive role government often plays in fostering new technologies. Triodos' investment could promote a more sustainable future, potentially accelerating the expansion of renewables.

Step-by-step explanation:

The question concerning whether Triodos should consider investing in Tesla touches on the broader subjects of sustainable investing and the role of government in promoting new technology. When we look at the dynamics of financing change and the evolving nature of finance, we see a trend towards more sustainable and socially responsible investments. Triodos, being committed to ethical and green investing, would likely view Tesla, a leader in electric vehicle and clean energy technology, as an attractive investment opportunity, aligning with their values of positive societal impact and environmental stewardship.

However, the question of government involvement is also pertinent. It is not inevitable, but it is often beneficial for governments to support investments in new technologies, such as through subsidies or infrastructure investment, to overcome the initial barriers to market entry and foster innovation. Without significant changes to the recent trend, the expansion of renewables and related technologies may not be as rapid as hoped. To this end, a bank like Triodos could leverage their investments to both promote sustainable solutions and advocate for supportive government policies, thereby accelerating the transition towards a more sustainable future.

User Hectorsq
by
7.9k points