SWOT Analysis Of Tesla

From 2008 to 2013, Tesla Motors has been increasing the current assets steadily at average pace of 43%. In 2008, the low current ratio occurred because of the fact that their current liabilities was 34% higher than the current assets because of a large amount in accounts payable. From 2008

Industry Competitive Environment 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.

Tesla Motors has the necessary advantage to maintain its business success in the next few years. However, as determined by the SWOT analysis, the company must deal with various issues to maintain its competitiveness and increase profitability. Tesla must improve its international influence. For example, new facilities and sales in high developing countries can boost business growth and meet Tesla's mission and vision. In addition, the company must continue to invest in R & D, and continue to innovate and produce technologically advanced products. The SWOT analysis shows that, despite the fierce competition in the global automotive market, Tesla may have enormous potential in the global automotive market.

Internal & External Issues As an emerged company, Tesla contributes significantly to administrative misconduct, fraud, underachievement and controversies. For instance, when Designer Engineer, Cristina Balau Stated that quality issues increased as production augmented on Tesla’s Model S, due to the application of bad parts in the car, she was force to quit her job and later filed a

Tesla is working on implementing a self driving feature to all three of their models. This will allow Tesla's vehicles to be safer than a human driver and increase the amount of buyers. Tesla has plans to introduce a fourth car to the line, at a cost so low, almost everyone will have the ability to afford it. This will help increase market share and generate a higher profit. Tesla's earnings are expected to grow at a 30% annual rate over the next five

Tesla must conquer the challenges that are related to the external factors that are shown in the PESTEL analysis. PESTEL stands for Political, Economic, Social, Technological, Environmental and Legal. Since it is a strategic gadget it will have some external factors that are going to affect other elements of the business such as consumers and community-based associations. It is important as it gives critical understanding to Publicizing in an overall setting that chooses those missions results and achievements. For a solid trademark and beneficent profits, Tesla can upgrade its long-term success by including the outcomes of the PESTEL analysis in a critical form. Tesla’s income is rising alongside with developing benefits. This condition demonstrates Tesla’s efficiency in acknowledging the external factors in the macro-environment of the

INTRODUCTION Tesla Motors is a global enterprise specializing in the design, production, and marketing of electric powered vehicles founded in 2003 by the young businessman, Elon Musk. Elon is well known for co-founding paypal, and now he amazes the world again with his incredible vision of Tesla Motors, and being the main product architect. Tesla Motors appeals to the environmentally friendly market, by currently being the only company to sell a zero-emission sports car. Tesla’s fundamental motive and selling point is producing only electric vehicles, as opposed to competing companies, producing a combination hybrid, or diesel car.

Question One As an esteemed business entity, Tesla has aimed at coming up with effective strategy to guide its operations thereby culminating into total success in terms of its total sales. The strategy is also fundamental in curving any potential competition in the motor industry. Tesla, as a matter of fact, aims at achieving worldwide recognition with regard to electric vehicles production. The key elements to enhance this significant strategy are as stipulated bellow;

II. External Environment Demographic Recharging stations availability has provided a major opportunity for Tesla Motors development. Industry Environment Multiple Suppliers = Bargaining Power Suppliers have a very high bargaining power because their goods are not those of commodity type. The company is limited to the amount of suppliers used in order to maintain its level of manufacturing. For example, more than 33 suppliers invested in the Tesla Model S in 2013. If Tesla is unwilling to pay a certain price demanded by one supplier, their manufacturing procedure will be handicapped. Therefore, suppliers are capable of setting their prices without considering whether or not Tesla is willing to pay.

With a reputation built, for the Tesla S model the high advertisement strategy continued. The need of a large investment in marketing strategy can be understood by the tight automobile industry explained at the beginning, where consumers have a large amount of companies that provide cars, that already have a reputation generated, and in order to make costumers desire a new brand in the market they must be showed why this new product fits to their needs.

TESLA Motor Inc. Keuka Sailors Keuka College MGT-520-MI007 October 19th, 2014 Mr. Andrew A. Kubrich Table of Contents Overview 4 Regulatory Credits 5 Risk factors 6 Risks Related to Our Business and Industry 6 Interest Rate Risk 7 Tesla’s SWOT Analysis 7 Strengths 7 Weaknesses 9 Opportunities 9 Threats 10 Common Size 11 Ratio Analysis 12 Cash Flow Estimation 14 TESLA MOTORS Valuation and Recommendations 15 Overview We design, develop, manufacture and sell high-performance fully electric vehicles and advanced electric vehicle powertrain components. We have established our own network of sales and service centers and Supercharger stations globally thus creating a unique business model in the automobile industry. We

Skilled personnel Tesla Motors are noted to have personnel with a unique expertise in their field of work. These individuals help in carrying out activities that lead to the great performance of the company. The various innovations applied by these people is what led to the better performance of the company. Elon Musk along with taking over the leadership of the company brought about his experience in the firm and this was to influence the future performance of the company. Elon masterminded the designing of the Roadster and also included the marketing of the ordinary vehicle in the goals of the company (Hunger, 2010). This was something which had not been done by those who were there before him and thus his

Company Information Tesla Motors Inc. was founded in 2003 by a group of engineers, one of whom is now the current CEO, Elon Musk. The company was founded on the ideals of not having to compromise to drive electric. These vehicles would be “better, quicker and more fun to drive than

Strength Unique position in automotive industry: there is public excitement for the vehicles Tesla manufactures. Tesla has a climbing interest among investors as that population continues to grow and the company’s value is increasing with the development of a sound financial strategy for future value. The intangible appeal of the Tesla car product is the high-value of a new company projecting market confidence.

Differentiation Strategy of Tesla Sales & Marketing Tesla use swinging by the fences strategy, which implement high risk business, however generate high return. First, we target the high end customer by producing high class product. We produce the product at the same level as Maserati, Porsche, etc. We need to make an high brand image for the brand, especially the Tesla brand is still new to the automobile industry. Telsa has this different aspect from other car nowadays, Tesla operated by battery or we could say Tesla produce electric car. After we got quite some revenue to expand our market, we will target new segmentation of customer, which lower than the above explanation. We produce a product with price range from US$ 50,000 – US$ 75,000, which has lower class than Maserati and Porshe. We use this marketing