In terms of absorptive capacity, which of the following would best describe Tesla’s ability to innovate?

Question

Answer

Tesla limits its knowledge to only internal sources and does not engage with external information.

Answer

Tesla has high absorptive capacity, which allows it to quickly recognise, assimilate, and apply external knowledge in developing new technologies.

Answer

Tesla does not require external knowledge as its internal expertise is sufficient for all its needs.

Answer

Tesla has low absorptive capacity and struggles to adapt to new market trends.

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