It is a company based in California, America, and was founded in 2003. It was named after Nikola Tesla who was an electric engineer and a scientist. Tesla’s products include electric vehicles and clean energy. These products are sold all over the world through the internet and a network of Tesla stores and galleries. This Read More
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It is a company based in California, America, and was founded in 2003. It was named after Nikola Tesla who was an electric engineer and a scientist. Tesla’s products include electric vehicles and clean energy. These products are sold all over the world through the internet and a network of Tesla stores and galleries. This has accelerated the adoption of electric vehicles all over the world. We will discuss more on Tesla swot analysis.
Model X sport utility vehicle and Model S sedan are Tesla’s two main fully electric vehicles. At Elite Academic Brokers, we can help you gain insight into Tesla and critically analyze the company.
Our team of experts can help you with any queries and research on Tesla and other topics. For now, we will look at Tesla’s (strengths, weaknesses, opportunities, and threats) SWOT.
The strengths and points below ensure Tesla’s efficiency, profitability, expansion, and popularity in the market compared to its competitors.
These strengths include the following:
Tesla’s quality and innovation rate are very high considering the current two fully electric models and attractive styling.
These features are distinct from those of other automotive companies. Tesla focuses on improving the quality of its models and updating them with technological advances.
The production of quality products and innovation at Tesla has ensured increased profitability and competitiveness in the market, which has resulted in financial gains for Tesla.
Technological innovations have ensured a strong brand since most customers are satisfied with Tesla’s products, hence greater trust.
Tesla has become one of the most recognized brands because it has turned innovative ideas into reality. The strong brand image has also been influenced by the personal brand of its CEO, Elon Musk, who greatly influences most people. A strong brand image leads to high sales for Tesla.
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As the leading automotive company, Tesla can manufacture most parts used in the production of their vehicles, reducing their reliance on other manufacturing companies and becoming less vulnerable. Tesla has also invested in the manufacturing facilities, an essential aspect of their company.
This is seen in two of Tesla’s models, among the top three in sales. Model 3 is in the first position of the most electric cars sold, and Model S comes in the third position. The increased car sales of Tesla have increased its profitability, hence, a financial gain.
Limited presence.
The market for Tesla outside the US is limited. Since Tesla cannot produce vehicles at the desired pace, its portfolio is limited compared to other automobile companies due to the limited supply chain, which hinders Tesla’s profit growth in different regions.
The US and China are the leading markets for Tesla’s products. Hence, Tesla needs to focus on these markets to increase its customer base and market share faster.
This is achieved by establishing these regions’ service stations and supercharger networks.
High operational costs, Tesla’s primary focus is on innovation and quality in its products.
Much money is used in research and development to achieve this, and other costs are involved. The cost of revenue has grown over the years hence increasing the total operating costs.
Manufacturing complications. This is brought about by the high standard of innovation set by Tesla, hence facing increased risks in production and mechanical complications. This is a major problem as it delays the launching of their vehicles.
Market diversification
Tesla’s venture into new products like battery production will help the company avoid an economic downturn, increasing its vehicle manufacturing rate and reducing production costs. This will lead to increased sales in Tesla in both the batteries and electric vehicles.
Sales expansion in the untapped market
Tesla’s presence in most regions of the world is limited. The automotive market in most of these regions is unsaturated and unsatisfied. Tesla tapping into these ready markets with its ready products could lead to market expansion, hence increased financial gains.
Introduction of the pick-up truck. According to the National Automobile Dealers Association, pick-up trucks account for more than 15 percent of the US automotive market. This is an excellent opportunity for electric vehicle growth, and hence a massive chance for Tesla to venture into this with its innovative and quality vehicles.
There is intense and aggressive competition in the automotive industry, as some companies like Volkswagen are now producing electric vehicles, and the competition from fuel-dependent cars is still increasing.
Most of these companies have focused on their marketing and heavily invested in research and development, hence a major threat to Tesla, which has to improve its marketing strategy.
Regulatory threats. The government has strict regulations in the automotive industry, which result in high compliance costs for most automotive companies. This affects Tesla’s expansion plans, thus hindering the overall profitability growth.
Tesla’s production and sustainability in the electric vehicle market highly depend on the customers’ willingness and readiness for change.
If the customers do not adopt and adapt to electric vehicles, it will be a significant challenge for Tesla.
Disruption of supply due to a shortage of materials. Materials used in the manufacturing change with time, posing a significant threat.
The increasing prices of these materials are a cause of concern for Tesla. Since it can delay or hinder vehicle production and decrease financial gains.
High-risk factor due to the usage of Lithium-ion. The use of lithium in the battery pack in Tesla has caused damage since lithium is highly reactive and has caused fires in the cars. This public awareness has affected Tesla’s reputation.
Given above are among the few points of Tesla’s SWOT analysis. Many other factors and Elite Academic Brokers can help in their discussion. We see that Tesla has strengths, weaknesses, opportunities, and threats.
Suppose Tesla focuses and maximizes both the opportunities and strengths. Try to work on the weaknesses and threats; there will be increased growth in most aspects of Tesla.
Evan John