Pestel: Electric Vehicle and Tesla Motors Essay

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Case 5 Tesla Motors and U.S. Auto Industry As a pioneer of green technology car manufactory, Tesla Motors has placed himself in the U.S. automotive industry. Tesla Roadster is considered to be a cash cow in 2009, and it is the only electric cars have been mass product. However, after the competitors had entered the market, alternatives joined the battle of green technology car, such as hybrids, fuel cell ,etc. Furthermore external environment has changed. Elon Musk, the co-founder and head of product design, is facing a question either to sell it or continue to run three companies including Tesla Motors at once. Base on my opinion, in order to analyze Tesla Motors' case, external environment analysis on electric car industry should…show more content…
Particularly, in European countries where oil price is much higher than in U.S. The Big Three have fallen which provides another advantageous chance that Tesla can use to enforce market position. 3. Sociocultural Factors * More and more people start to consider paying extra money for green cars because of environmental issue. * The total population growth. After couple decades efforts by environmentalist, public start to realize how important our environment is. Therefore, they would be potential consumers for Tesla. Increase in world population will be a opportunity because demand for cars will increase along with population. 4. Technological Factors * Battery. * Both Boston Power Co. and Valence Technology Corp. are planning to expand into making automotive batteries. * Alternative car technologies threat. As the single most expensive component in electric car, battery is the most disadvantage of battery electric vehicles, because of weight lifetime, long charging times and limited energy-to-weight ratio; therefore, battery technology will determine the battery electric vehicles industry. Good news is some great companies are planning working on it. Other car technologies are threats to battery electric vehicles, but on other side of a coin, they all have shortcoming, such as it is not easy to get ethanol for flexible fuel vehicles. 5. Ecological
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