I guess no one at BMW, Mercedes or Audi has read the Innovator's dilemma.

That said, the German government tried to create many incentives for creating "greener" cars. However, the manufacturers IMO seemed to pour money into lobbying against it, rather then putting their engineers to work.

Depending on how much Tesla eats into their market share, it could be a tough road ahead for the German car industry (and, to some extent, for the whole German economy). Especially considering how long it takes them to come up with an answer to the Prius...