The SWOT Analysis of Tesla

The SWOT Analysis of TeslaBackground of TeslaCompanyTesla Inc.CEOElon MuskFounded2003LocationPalo Alto, California, United StatesAnnual RevenueUS$ 24.58B (2019)Development Timeline of Tesla2003: The company was founded by Martin Eberhard and Marc Tarpenning.2006: Tesla made a deal with Toyota. Both companies joined hands to source drivetrains from the RAV4 EV crossover SUV.2008: The Original Roadster debuted into the automobile industry. This vehicle revolutionised the perception of an electric vehicle.2012: The Model S launched into the market being the first clean sheet designed vehicle to. It proved that Tesla can not only do fast but also create a luxury Sedan.2015: Marked the beginning of Tesla’s entrance into auto-pilot. Tesla tested its semi self-driving vehicles.2017: In a concert like-reveal, Tesla’s CEO Elon Musk launched Tesla Semi and the New Roadster. The New Roadster became the fastest production car worldwide.2019: The launch of Model Y, a compact crossover and The Cybertruck, Tesla’s energy-saving version of a pickup truck.2019-20: Tesla became the most financially valuable American automobile company by surpassing GM and Ford.Benefits of SWOT Analysis TeslaStrengthsWeaknessOpportunitiesThreatsEnergy Efficiency - Tesla is a leading pioneer when it comes to electric vehicles due to its prominent use of renewable energy sources like solar power.Partnership - Tesla is collaborating with big giants like Southeast APDA, Yes Energy etc. These collaborations help is expanding Tesla’s renewable energy efforts and in the global market.Highly innovative - Tesla’s design is top class. And they put a lot of thought during engineering and designing of their electric vehicle to give extreme comfort to their consumers.Sturdy Brand Image - The market trusts and expects the company to develop clean energy and profitable products. It has gained immense fame.Limited Presence - On the one hand, Tesla is working on establishing themselves in a hypercompetitive automobile market and on the other they are trying to expand globally.Premium Product Range - Tesla is an established premium clean energy brand. One of the setbacks they can face is in terms of affordability and a consumer’s trust when it comes to electric vehicles.Succession Strategy - Elon Musk has become the brand face od Tesla and it is accepted as a one-man-show. Although Elon Musk himself has a lot on his plate.Autonomous Driving Technology - Tesla’s autopilot technology has gained it fame for its safety and convenience. Making it trustworthy by consumers and the share market. Tesla’s work in autopilot is constantly evolving.Environment-friendly cars - As consumers are becoming more environmentally conscious, the need for more electric vehicles is growing along with the need to minimise fuel-driven cars.Battery Production Technology - Tesla is planning on manufacturing its battery cell in-house. This can be a game-changer as it will help the company lower its production cost. And will also create many jobs, in turn, helping the economy.Increased Competition - Heavy research is being done for automobiles powered by renewable energy and many big companies like BMW and Volkswagen are becoming Tesla’s competitors.New technologies - There are innovative ways of energy being used in vehicles. Competitive pressure can lead to high operational costs and decreased profit margins.Long Term Sustainability - It is essential to maintain long term sustainability for a clean energy automobile company. This is a potential threat due to Tesla’s unstable manufacturing conditions and limited EV support infrastructure in North America and several parts of Asia.
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