Abhijeet Pratap
3 min readOct 21, 2017


Tesla’s sustainable innovation has turned it into a well known and popular brand. It is mainly famous for its environment friendly vehicles and energy products. It is known as the maker of high performance fully electric vehicles and energy systems. Apart from that Tesla installs and maintains solar and energy storage products. It is working on growing its global network of vehicle stores and service centers faster. There are challenges in Tesla’s path including making challenges related to affordability and accessibility. Its cars are costlier and belong to the premium segment and the next major challenge is the availability of charging points and service centers.

This is a SWOT analysis that highlights Tesla’s major strengths, weaknesses, opportunities.


  • Brand recognition — Tesla is a well recognized brand now well known for its sustainable innovation model.
  • Sustainable innovation — Tesla’s sustainable innovation model is one of its biggest strengths.
  • Growing vehicle sales — Its vehicle sales have kept growing very fast globally. Some major growth was noted between 2015 and 2016.
  • Engineering and technological expertise — Tesla is also well known for its engineering and technological expertise. It also spends a lot on Research and development.
  • Fast growing super charger network — Tesla’s super charger networks have a central role in the widespread adoption of the Tesla products. It is working on growing this network faster.


  • High costs of vehicles — Tesla vehicles due to being costlier than the ordinary vehicles and belong to the premium category. Its Model X and Model S are both costly products, not affordable for the masses.
  • Limited presence — Tesla’s sales network depends on its super charger network. Currently, its sales are limited because its super charger network is limited. The brand is working on growing it and as the super charger network grows, it will lead to higher sales.
  • High competition — The level of competition in the automobiles industry is high. Even in the electrical vehicles segment, the competition is rising as more brands including Ford, Nissan and Toyota have brought environment friendly and electrical vehicles.
  • High production and operation costs — The production and operation costs at Tesla are very high. A lot goes into research and development too.


  • Growing demand of sustainable products- In the 21st century, the demand for sustainable products is growing and companies making sustainable products have grown more popular.
  • Supply chain, sales and maintenance network in Asia — Asian markets have become the battleground of the automotive brands. For brands like Tesla, there are major opportunities hidden in both the Chinese and Indian markets.
  • More low priced models to tap into the rising middle class — Middle class is the biggest consumer segment in the 21st century. Tesla can tap into this consumer segment by introducing more low cost model.
  • Autonomous driving technology — Many top vehicle brands are working on bringing their autonomous vehicles to the market by the year 2020. Tesla has self driving software on its vehicles and is working to bring its fully autonomous vehicle.
  • Mobility service — Tesla is also planning to release a ride sharing service. If it releases such a service people would have another cost efficient option for public transportation.


  • Competition — Tesla is facing intense competition from both luxury brands and environment friendly brands.
  • Legal and regulatory troubles — Legal and regulatory troubles can be costly affairs and they can lead to a rise in costs. From labor to product related and environmental laws, there are several that add to the operational costs of brands like Tesla


Tesla’s business network is growing faster. Last year, the company saw some major growth in its vehicle sales. Its manufacturing and marketing have also grown more cost efficient. However, its super charger network would need to grow faster, if the brand wants its sales to grow further.

Read a detailed swot analysis of Tesla @ https://www.notesmatic.com/2017/10/tesla-swot-analysis/