Tesla Swot Analysis

5754 WordsMay 12, 201624 Pages
Tesla Motors: SWOT Analysis Tesla Motors designs, develops, manufactures and sells high performance fully electric vehicles, advanced electric vehicle, powertrain components and stationary energy storage systems. Political, economic, socio-cultural and technological factors have influenced Tesla in complex ways since Tesla is a big player in the EV industry – one of the non-traditional automobile industry segments. The political factors have mostly favored Tesla since the government gives subsidies, tax rebates for EV manufacture. The general economic growth in the US economy have favored Tesla but decreasing oil prices and increasing labor prices have acted as threats to Tesla. The go green concepts have favored Tesla but…show more content…
Reduction of battery costs by 10% in next year and price of cars by 10% next year This will help in removing threats from competitors when these benefits are passed on to the customers by way of lower prices of cars The above strategies are rated highest and is selected since they focus on rectification of weakness of lower economies of scale of operations, production delays of Tesla and at the same time advocate the use of innovative technology to create newer and more variety of EVS which will help the increasing the sales. The strategies also focus on removing threats from competitors by way of greater product differentiation and higher economies of scale. These are analyzed in a more detailed way as given below * Satisfies the core competences of using innovations in technology which is one of the main core competencies of Tesla. This in turn helps in increasing the sales volume of Tesla * Takes into account product differentiation and aims at competitive advantage by way of newer designs which will help in removing the threats from competitors. * These strategies focus on rectification of the weakness of Tesla by providing metrics for eliminating the production delays, small quantity and choices of cars and expensive cars with high battery costs by way of increasing the production volume and

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