Tesla Swot Analysis

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.

Tesla Motors operate in a highly competitive market. This aspect of the review of the analysis of the five armies of influence on the competitive environment of the automotive industry. In the case of Tesla, the intensity of competition responsible for the power of external factors are as follows:

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.

In marketing the most important factor is the brand value. Majority of customers prefer a particular brand and want to stick to it for a long time. This is the reason why every company spend legal amount of money in marketing their product so it can build relationship with customers which can stick to them for a long time. As far as my personal choice is concerned, I have many favorite brands for different requirements but for this paper I will chose my favorite brand which is Tesla Motors.

Tesla is an automobile company that designs and manufactures electric cars. Cars produce a lot of carbon emissions that are ejected into our natural atmosphere, leaving us vulnerable to things like pollution and greenhouse gases. In order to help positively the environment we live in, an electric car is a great step forward. It does not emit toxic gases or smoke in the environment as it runs on clean energy source. Electric cars are far more efficient than any other kind of car, and because they are the ultimate multi-fuel cars. The neat thing about electricity is that pretty much any burnable fuel can be converted to electricity efficiently. we can make electricity in so many different ways such as we can put a million solar panels on our

In the upcoming three years, Tesla introduced their Model X, which is a SUV, and unveiled the Model 3, which started at the price of $35,000 and targeted the mass market. However, the Chinese government was strict in regulating all foreign companies entering into the Chinese economy. Many foreign companies can have a hard time making deal with local government officials. One of the biggest problems for Tesla was in 2014, which 45% of Tesla’s Model S were still unregistered with local authorities. There were also some legal issues such as, China’s laws can be ambiguous with unclear restrictions and regulations; therefore, Tesla will face strict environment laws when manufacturing their products in China. The Chinese have become more aware of the environment and the pollution arising, which is causing doubts in the car industry. Additionally, the price of gasoline is going up while the Chinese are still trying to project their status and electric cars are becoming more popular. However, despite the facts of these issues, Tesla may be a bit more expensive than predicted but families are still willing to pay the price to improve their social

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.

Tesla Motors is an American company, founded in 2003 in Silicon Valley by a group of engineers, who had a vision to create fantastic electric vehicles.

The company, Tesla Motors, has faced tremendous challenge due to the competition increase in the external environment, and the inclusion of technologies that emerge within the automotive industry. The company becomes unable to maintain its competitive edge, while providing quality along with the reduction in cost. The reason is the inefficiency of some of its suppliers, as well as the lack of technical expertise at the internal level.

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 gasoline cars” (About Tesla). Tesla launched its first car in 2008, the Tesla Roadster. It is known as the first car to use a lithium-ion battery and revealed Tesla’s cutting-edge electric powertrain. Since then, Tesla has been able to expand with the Model S, Model X, and Model 3 (that has just begun production this year). Not only do they build electric cars but have expanded into scalable clean energy generation, storage products, and charging stations.

In order to provide a lower-end vehicle, a company must be able to benefit from economies of scale in order to reduce their costs. Without pre-existing systems and factories in place, Tesla would be unable to compete at the lower price point due to its high costs. Therefore, their strategy to enter the market with a higher end, “flashier” vehicle allows them to set up their operations for future production while actually standing a chance against their competitors. The higher profit margin per unit sold allows the company to break even faster on their fixed setup costs. In addition, Tesla was able to benefit from the industry crisis to purchase plants at a fraction of the normal cost. Another key barrier Tesla had to overcome is the consumer’s perception of eco-friendly cars and how to re-define the product’s position in the consumer’s mind. They did so through a marketing campaign focusing on the speed, comfort, and handling before talking low emissions. They also stressed the potential cost savings from gas and reduced service and repairs to their consumers. Presenting their brand this way helped expand their potential consumer market as the vehicle was meant to appeal to the general buyer, not those specifically looking for environmentally friendly vehicles. Tesla also had to compete within the

The PEST analysis is more of long-term analysis that can help determine how Political, Economical, Social, and Technological change will affect the performance and activities of a business.

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