PESTE Analysis out of Canada Essay

Timing: When environmental issue seems to be worsening, governments around the world are battling to cut the number of greenhouse gases. Developing new energy automobile seems a new trend. Tesla as a bellwether of the new energy company, it secured $465 million loans from U.S Department of Energy in 2010(Bloomberg) . Nearly half-billion subsidy support by the government is a miracle, even today is unthinkable. But Tesla made it. Tesla made a right decision and doing the right thing in the right time and made it perfectly.

Tesla’s differentiation strategy will most probably be sustainable in the long run, but only if the company keeps its essence of innovation. Although a differentiation strategy is harder to replicate than a cost-advantage strategy, Tesla needs to innovate and improve their products or other competitors will find ways to replicate their products, even more now that Tesla released its patents. Tesla has already gained a reputation and position in the global market, the key for sustainability is how they manage to exploit and grow based on their

Electric cars over the last several years have been a controversial topic. Companies have ran into issues regarding the batteries, pricing, and clearly competition with gas fueled vehicles. I noticed Tesla Motors a few years ago and instantly fell in love with their electric vehicles. Tesla managed to keep a very clean look with a sports car feel to their vehicles, and they are currently working on their new battery which is expected to last much longer. The price of their vehicles at the moment are priced higher than most average families can afford, but Tesla announced they are releasing a more affordable vehicle in 2017. Throughout the existence of Tesla they have made it clear they will not settle with just making vehicles that are in compliance with the laws set in place, their company will strive to make the best vehicles they can.

Appealing to the mass market indicates something of a shift in Tesla’s strategy. Prior to the introduction of the Model 3, Tesla’s lineup consisted of the Model S and the Model X, both with a MSRP in excess of $70,000 (Arata, 2017). These vehicles were marketed toward wealthy consumers willing to be the first adopter of an all-electric vehicle, representing more of a focused differentiation strategy; with the Model 3, Tesla is still differentiating itself from

Through all of this information, Tesla and traditional gas powered car owners have learned more about the Tesla and how it is not as environmentally friendly as society may portray it to be. Hopefully the readers of this paper learn that you must be educated before they buy a certain product.

Consumer behavior towards the electric vehicles has been negative in the US but Elon bets on the near future where the central focus will be on clean energy. He emphasized that the company is more inclined towards environmental impact other than just an automobile car company (Kallen, 2016, p 23). Tesla 3 is the dream car for Elon and Tesla, which its prototype was unveiled recently, and production looks to start in 2017. The car will be the cheapest that the company has produced at almost a third the previous price of Model X. The move exposes huge risks to the business both financial and future risks.

Mr. Musk said, in the next two to three years Tesla Motors plans to make their electric cars price range from about 30 thousand to 35 thousand dollars. These more affordable electric cars will be 20% smaller than the Tesla model S but the cars themselves will still be able to travel 200 to 250 miles with one single charge. By then Tesla Motors plans to have supercharge networks positioned throughout the US and Europe, allowing Tesla vehicles to be able to drive across the United States. Old auto industries hate that Tesla Motors are bringing these new innovations to the forefront as it disrupts their idea of the ‘perfect auto industry’, which includes the worst car salesmen, okay safety, somewhat bad service and wasting money on gas energy compared to what Tesla Motors is trying to bring which tops all of that.

Tesla Motors is among the top 25 companies “going green” for our economy. Tesla motors is a venture aimed at proving that cars can be environmentally friendly, without giving up the speed and power, purchasers love. The cost of running this amazing, green driving machine is a mere 2 cents per mile. (Ryan, 2008) Tesla Motors is a company looking to produce a high-performance electric sports car, and is backed by a number of high-profile investors. Introduced in June 2006 to the public complete with a test drive by California Governor Arnold Schwarzenegger, the Tesla Roadster is able to go from 0 to 60 in 4

EVs, or electric vehicles, have the highest likelihood of replacing gasoline powered cars compared to the other alternative fuels. Some vehicle manufacturers are already planning to shift production completely to electric cars already including Volvo and General Motors, two of the largest companies in vehicle production today, while Tesla already produces exclusively electric cars. The electric car trend is due largely to the efforts of Tesla and its founder, Elon Musk, who has been the figurehead for environmentally conscious technical advancement since he founded Tesla. He is loved by the public, and so his appeal has certainly aided in public approval and consumption of electric cars. This has even forced other companies to also shift their efforts toward electric cars. While this may seem like a huge achievement for the environment, there is much more to electric cars than meets the eye.

Tesla Motors is a electric car company that specializes in cutting-edge technologies and creating new jobs. Right now, Tesla is in the process of making a new super-factory for electric cars in the US that will require over 6,500 jobs. This new factory and search for effective AFVs is why Tesla’s CEO Elon Musk expects there to be over 500,000 Tesla vehicles on the roads by 2020 (4). This optimistic CEO believes this because Tesla is creating stylish new electric cars that can go zero to sixty in under four seconds, has a top speed of 125 mph, and can go over 220 miles per charge. With a price tag at $69,900, this company is beginning to make cars that are approaching reasonable prices for consumers (5).

As of 2013, Tesla owned 43% of the market share of electric vehicles in Canada (EVWORLD, 2013) and the market is expected to continue to grow, as sustainable energy becomes more of a way of life than a movement.  According to the Government of Canada, “the market for electric vehicles in Canada is growing as Canadians look for cleaner, more efficient vehicles. Research confirms that consumers in North America are willing to pay more for an electric vehicle if the environmental benefits are significant” (Government of Canada, 2010).  With this expedited increase in purchases of electric vehicles, the Tesla Model S is positioned well to obtain its goal of increasing its existing market share.

Tesla Motors Incorporated, an American company that designs, produces, and sells electric vehicles and their electric components, has become one of the fastest growing car companies in recent history. The company’s main goal was to start creating electric vehicles that were accessible and affordable to the public. Founded in 2003 and taking off successfully by 2009, Tesla Motors started selling the first mass-produced vehicle to use lithium-ion battery cells and hold a range of greater than 200 miles on just one charge. Along with building their own electric vehicle models, Tesla also builds electric powertrain components for vehicles from other automakers including cars such as the Toyota RAV4 electric vehicle. Tesla has begun to maximize

Tesla Motors is a relatively new Silicon-Valley based company that designs and produces electronic vehicles. The company aims at producing consumer affordable price electronic automobiles with zero emissions in the next decade. Currently the CEO Musk is working on introducing the new electronic automobile Model S to the mass consumer market. However, when we look at the external environment, the Tesla Company still faces lots of challenges. The Tesla Motors’ strong competitors are the automobile companies that produce gas cars such as

Through “production advantages” we meant to identify and explain how is Tesla sustaining competitive advantage in the current market and what are their core competencies.

One of the main political factors facing Tesla in the US are the incentives offered by different states and cities to Tesla owners. They must co-ordinate with these policy makers and inform the consumer. In China, the key political factor is that “the Chinese government wants to put around 5 million electric or plug-in hybrid vehicles on its roads by 2020, but to date reports have confirmed that there are a mere 70,000 electric vehicles plying on China’s roads. In order to promote EV sales, the government has set a target that 30% of government vehicles purchased by 2016 should be EVs. To reach the target set for 2020, the Chinese government is ready to fund nearly $16 billion to build electric charging stations. To further promote EVs among Chinese car buyers, the government is looking to impose a new tax on gasoline engines and has renewed the private-buyer subsidies for electric-powered vehicles for another three years.” (GuruFocus. 2014.