Tesla Strengths And Weaknesses

In this paper I intend to provide a sound financial analysis of Tesla Motors Incorporated. I will do so by calculating and providing liquidity, profitability, and solvency ratios and then evaluating those results. Assessment of these ratios will more or less define Tesla Motors’ abilities to meet its short-term debts and obligations (liquidity), performance in relation to sales, assets, and profits or losses (profitability), and the resulting income amount, after tax deductions, against the company’s liabilities (solvency). Additionally I will compare

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 remains in its primitive stages. Being a relatively young and emergent company, Tesla

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

Opportunity: For the overall electric automotive industry and Tesla, they should improve its financial performance through government incentives to alleviate the problem of carbon emissions from its car models.

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.

The aim and vison of Tesla Motors is to provide in the short run cars which are affordable to the average consumer, it started making first sport cars for the enthusiast for speed and environmental preservation, moving then to the second phase to the large market who choses affordable compacts and sedans which in turn will promote and stimulate the electric car trend.

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

Tesla has become the first automaker to implement a direct sales business model, they don’t rely on middlemen to get their product to the masses, instead they go directly from the factory to the future owners via online sales. The people who are already costumers are satisfied and this makes their user base grow via word of mouth.

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

They are considering disruptors in the electric car market. With their advance innovation and stylish design, many consumers are willing to pay high price for Tesla performance car. Tesla has place themselves as a luxury brand with many consumers waiting for their new released backed order products.

Between 2003 and 2013 Tesla was arguably one of the most controversial companies. An innovative company with a breakdown idea, had no financial success in its first decade. With the addition of Elon Musk in 2008, Tesla had a fresh new face at the stern of its company and was poised to make big strides into the future. Those strides finally broke through in 2013 with its first truly positive financial year. However, this year was not without trouble as Tesla found itself in the news for the wrong reasons. On several occasions their Model S design had issues with car fires. Though this did not cause a complete catastrophe, it cased questions to the true safety of their vehicles. Tesla would fight back by arguing the safety of their vehicles saved the drivers lives in addition to unforeseen circumstances that caused the fires. Because of these incidents, investors did get spooked and expectation for the remainder of 2013 and projected 2014 were lowered, yet once again Tesla powered through and had their best year of existence. With these above factors, Tesla is at a true crossroads: do they continue the uphill climb that 2013 presented, or do they falter and fall pretty to its competitors.

Rarity: Tesla Motors is known to have a differentiated product over other firms in the sense that it sells electric based cars. It is the only successfully running electric sports cars in the U.S. At the beginning sales were not enough to sustain the business but tesla motors proved it self after introducing the new model, Tesla Roadster 2. There is only few car manufacturing companies trying to enter this industry which makes Tesla Motors have a competitive advantage.

In order for Tesla Motors to keep growing now and into the future, it is going to be important to expand their target market to reach more consumers. Expanding the target market to include generation Y (mid-20s to early 40s, middle class working adult), Tesla would be able to utilize their facility, while increasing production. This target market will be pinpointing the young professionals that are looking for an entry level luxury car. We are going to segment the market for our new targets in three categories: eco-friendly consumers, tech savvy and entry level luxury cars.

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.