Case Study : Tesla, Inc.

2592 Words11 Pages
Colton Moran Strategic Mgmt.
A04010981 4335.262 External/Internal Analysis

Tesla, Inc. (formerly known as Tesla Motors) is a major American automaker, energy storage company, and solar panel manufacturer based in Palo Alto, California. It started out as an automobile company in 2003 specializing in electric cars, however, changed their name to “Tesla” after pursuing innovations in lithium-ion battery energy storage, and residential solar panels. Martin Eberhard and Marc Tarpenning founded it but the company considers its most popular inventor, Elon Musk, to be a co-founder. Elon Musk’s day job is running a space transportation company called SpaceX; however, he is a chairman of Tesla and helps formulate business/product strategies,
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External Analysis
PESTLE:
P: The Political factors that affect Tesla the most, I saw as advantages. Tesla has an opportunity to improve its financial performance through government incentives because Tesla products have little to no carbon emissions. Also, free trade agreements are expanding creating an opportunity for Tesla to expand and penetrate international markets. The overall stability of most of these major markets lowers the risk of entering them and creates another opportunity for Tesla. E: Economic factors that affect Tesla are mostly the high costs of manufacturing their products such as the batteries/solar panels. This is a huge opportunity for them considering the advancement in innovations, decreasing renewable energy costs, and recent openings of massive manufacturing plants. These plants will produce more batteries/solar panels used to power their vehicles, more efficiently, and cut costs largely. An economic threat Tesla may experience is the instability of the automobile economy especially in foreign markets in Europe/Asia. S Societal/Socio-cultural factors affecting Tesla are the increasing popularity of low-carbon lifestyles and the increasing preference for renewable energy. These opportunities are the main reason Tesla exists. The founders of this company care about these issues so much they created products to help expedite the process/transition from a hydrocarbon economy to a solar electric economy. Tesla is the pioneer of the

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