TESLA SWOT ANALYSIS

  • 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.
  • 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.
  • 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.
  • 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

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Blog editor and founder notesmatic.com

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Abhijeet Pratap

Abhijeet Pratap

Blog editor and founder notesmatic.com

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