Pestel: Electric Vehicle and Tesla Motors Essay

Two parameters define Tesla’s industry competitive environment: what Tesla is today and what Tesla hopes to become in the near future. Today Tesla delivers an EV in the high-end luxury market ($70k+), but plans to deliver an affordable ($35K) small sized sedan in the next few years (Kaufman, 2015). The differences between Tesla’s current and future plans affect the threats and opportunities for potential entrants, industry competitors, and buyers in the near term and long term.

Not only does this provide the company an opportunity to focus all their efforts on the brand image, but it creates a loyal and devoted customer base, in a sense. Drivers with the mindset that electric vehicles are the future, like Tesla Motors, will share that vision with Tesla and continue to support and buy from them.

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.

Opportunity: The electric automotive industry and Tesla should decrease both the costs of its batteries and in renewable energy to attract more purchasing customers.

The car market has been ran by companies such as Volkswagen, Toyota, Ford, BMW, and many other companies, but one of the newer, up and coming companies in this market is Tesla Motors Inc. Tesla has been around for a little over 10 years, and have come quite a long way from where they began. Tesla now sells luxury electric vehicles different than any other electric vehicles today, and they have big plans for expansion in the future. Tesla may not be one of the biggest car companies today, but one day they will be considered alongside companies such as Toyota and Ford.

Tesla electric vehicles from Tesla Motors are gaining a reputation as the cars of the future. These models are not only known for their luxury features, acceleration, power, and nearly silent electric engines, but also for their green appeal. Individuals who can afford the hefty price tag are purchasing these vehicles because they are classy, fun to drive, and better for the environment than the standard gasoline car. Tesla Motors are leading the way in innovation in the American car industry with their Tesla electric models.

Electric cars have always been a thing of the future. The promise of a “green” mode of transportation is something that most people would love to have. Until recently, only a few manufacturers have even attempted the mass production of electric vehicles. The early attempts by General Motors (GM) in the 1990’s to mass produce electric cars mostly ended up in failure. Electric car customers were forced to deal with long re-charging times, a much lower range compared to gasoline powered cars, higher vehicle costs, and limited model styles to choose from. Though some were willing to make these sacrifices, the vast majority were not, which ultimately led to the end of electric vehicles 20 years ago.

The company has formed a partnership with many firms. Its R&D department has teamed with Panasonic to develop more efficient, strong and long lasting batteries (Karamitsios, 2013). In addition, Tesla Motors have cooperated with OEM producers such as Daimler and Toyota. The Toyota and Tesla cooperation intends to develop electric vehicles, parts and engineering support.

The car business, including manufacturing, distribution and service, is one of the largest industries in the United States. Ford, General Motors, and Chrysler make up 49% of this market and are known as the “Big Three”. Since WWII, no U.S. company, including the Big Three, has been successful in mass-producing a vehicle in the car industry. Perhaps with Tesla’s Blue Ocean Strategy, their innovative way of designing, developing and marketing the electric vehicle, most likely will continue to be successful in this market.

The electric vehicle is without doubt the mode of transportation for the future. Their evolution was kindled by environmental issues caused by the burning of fossil fuels, as well as social aspects. There are already quite a few electric vehicles on the market right now. It seems electric cars are getting more and more popular, they are getting increasingly competitive and everybody is talking about the Tesla model 3. Are there really that many improvements, and is the Tesla model 3 really worth buying? It’s also interesting what consumers are buying so far, what the future of the electric car will look like, and what some of the product specifications of these amazing pieces of machinery are.

Tesla Motors is a very forward thinking company that interests lay more in the future than the present. The entire basis of Tesla Motors is the realistic theory that sometime in the next couple decades, the world will be completely empty of petroleum, forcing those who choose to use automobiles to switch to non gas powered vehicles. Being a company based on electric vehicles, as long as this theory comes to fruition, they are set to be successful. According to Tesla Motors’ website, their mission statement is to accelerate the advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible. On the same lines as Tesla Motor’s mission statement, their vision statement is to create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles. According to Tesla Motors’ mission and vision statement, it is clear to see that electric power is the core of what the entire company was founded upon.

Currently General Motors provides an alternative to Tesla’s electric cars by developing the Volt which is an electric/hybrid car. Toyota provides a substitute by offering the Toyota Prius hybrid car with the development of a larger battery, plug-in system and provides home charging system that could affect Tesla’s electric car business. Another substitute is

Technology has been advancing since the turn of the century at an unparalleled pace with the constant announcement of new gadgets and innovations. Of the thousands of new technological advancements made in the past decade, the introduction of the electric car has been the most widely discussed topic. Electric cars are one hundred percent emission free and can replace the fire spitting, bone chilling sounds of a thunderous gasoline engine with the eloquent silence of luxury and speed. However, as with all things technological, electric vehicles have their problems. Electric cars have several benefits and could possibly replace gas cars in the future, but they are not refined enough to take over the world today because of a few technicalities

Tesla motor has had a quite a brilliant climb into the automotive world. Cars are synonymous with the American dream but the politics of oil and environment are raising question on how to fuel that dream. JB Straubel founder of tesla motors said that, “we are solving problems for our children our grand children, oil is a finite resource and eventually we have to find a

Since 1916, Bayerische Motoren Werke (BMW) has been one of the leading global vehicle manufacturers (Company Portrait, n.d.). BMW is known for its German designed luxury mid-sized cars (Company Portrait, n.d.). This industry is rapidly changing as new competitors are releasing more innovative and luxurious vehicles for lower prices and as a result, BMW has been losing market share (Stock, 2014). Through extensive research and deliberation, we recommend that BMW should focus on pushing current BMW electric car models in the short term and invest in research and development (R&D) to design a stronger electric car model to better compete in the industry.