SWOT Analysis for the Tesla Company

Exercise 3 Strengths Weaknesses Unique Position in the Auto Market1 Tesla has high prices7 Strong Brand Limited market presence- most of Quality product – Tesla keeps improving their cars constantly and making them better for a lower cost. 2 Sales Growth in the last few years Innovative Brand (Tesla updates their software constantly) 3 their revenue comes from the United States and some from China.8 Limited supply chain9 High expenditures for the charging stations Tesla spends more money than what Successful dual motor in Model S it actually wins every year, which is They have created new businesses why they’ve had to sell their shares10 such as Tesla Energy4 Supercharge stations Because they invest constantly they have debt11 Annual growth rate of 5.4% annually5 They created a “green movement” which influenced governments to purchase more fuel-efficient cars.6 1 Dalvagas, Iason. "SWOT Analysis: Tesla Motors, Inc." Value Line - The Most Trusted Name in Investment Research. 2 Kissinger, Daniel. "Tesla Inc. SWOT Analysis & Recommendations." Panmore Institute. February 02, 2018 3 Ibid 4 Washburn, Chris. “Major Case Analysis: Tesla Motors”. 5 Dalvagas, Iason. "SWOT Analysis: Tesla Motors, Inc." Value Line - The Most Trusted Name in Investment Research. 6 Ibid 7 Kissinger, Daniel. "Tesla Inc. SWOT Analysis & Recommendations." Panmore Institute. February 02, 2018 8 Ibid 9 Washburn, Chris. “Major Case Analysis: Tesla Motors”. 10 Dalvagas, Iason. "SWOT Analysis: Tesla Motors, Inc." Value Line - The Most Trusted Name in Investment Research. 11 Ibid Exercise 3 Opportunities Threats Tesla newer car Model 3 – It’s a much lower priced fully electric car12 Competition from other electric car manufacturers 16 Cost- Reduction Initiative – With Auto manufacturers – tesla’s biggest Musk’s secret master with three steps competitors are normal cars17 to bring an affordable electric car13 Fluctuation in material prices18 Global sales expansion – Tesla has Dealership regulations – Tesla sales slowly stated to expand to other parts their cars to costumers without a of the word.14 dealership19 Business diversification 15 Low gas prices20 Product Innovations Funding – Tesla might have problems funding their ambitious projects, they are currently working on Model 321 Analysis 12 Ibid 13 Ibid 14 Kissinger, Daniel. "Tesla Inc. SWOT Analysis & Recommendations." Panmore Institute. February 02, 2018 15 Ibid 16 Ibid 17 Dalvagas, Iason. "SWOT Analysis: Tesla Motors, Inc." Value Line - The Most Trusted Name in Investment Research. 18 Washburn, Chris. “Major Case Analysis: Tesla Motors”. 19 Kissinger, Daniel. "Tesla Inc. SWOT Analysis & Recommendations." Panmore Institute. February 02, 2018 20 Washburn, Chris. “Major Case Analysis: Tesla Motors”. 21 Dalvagas, Iason. "SWOT Analysis: Tesla Motors, Inc." Value Line - The Most Trusted Name in Investment Research. Exercise 3 Tesla’s main strength is its innovative brand.22 They also have the strength to remain in business for so many years, but as identified Tesla has a few issues that the company has to address to be able to improve its profitability, especially because Tesla has invested more than what they have made profit. Tesla is a company that it’s not afraid of taking risks, this can be as much good as it is bad because if things don’t go as planned the company could end up in bankruptcy. Tesla has a lot of strengths that they seem to be using to their advantage, like the supercharge stations because possible costumers take this into consideration, before buying an electric car. Also, Tesla’s way of advertising themselves is by creating “green movements” I believe this is very intelligent because it makes their target audience conscious about the problems and how by buying an electric car we can slowly fix the problems.23 It is also known that one of the biggest weakness that Tesla has it’s the price of their cars, because there’s companies like Nissan and Chevy who have electric cars, but they are noticeably cheaper.24 However, Tesla has started the production on Model 3, which is a more affordable option when looking for Tesla cars. Tesla is currently going through production difficulties for Model 3, this situation could be really bad for the company.25 Tesla has been investing in construction of their new factory in Nevada and Tesla’s cash flow has been low, because of this Tesla has been forced to raise more debt and sale more shares. 22 Kissinger, Daniel. "Tesla Inc. SWOT Analysis & Recommendations." Panmore Institute. February 02, 2018 23 Dalvagas, Iason. "SWOT Analysis: Tesla Motors, Inc." Value Line - The Most Trusted Name in Investment Research. 24 Kissinger, Daniel. "Tesla Inc. SWOT Analysis & Recommendations." Panmore Institute. February 02, 2018 25 Dalvagas, Iason. "SWOT Analysis: Tesla Motors, Inc." Value Line - The Most Trusted Name in Investment Research. Exercise 3 Tesla has many opportunities to grow as a company, to my belief they have slowly started to take advantage of their opportunities. I believe their biggest opportunity is global sales expansion, Tesla is only sold in specifically parts of the world but most of their sales are from the United States. Another major opportunity is the Model 3, this car is being sold for $35,000, this will give Tesla a huge advantage.26 Because currently the only thing that stops possible costumers from buying Tesla cars is the price, this will also help Tesla have an advantage to attain a larger market share in the US Automobile Manufacturing Industry. Some say that the biggest threat for Tesla is other electric cars manufacturers, but Tesla’s biggest threat is fuel cars manufacturers, because even though Tesla are trying to make it possible for people to change to electric cars there are a lot of people that aren’t convinced by electric cars.27 Another threat is the fact that tesla spends more money than it wins, even though Tesla made $1.5 billions in 2016 but the amount that they spend of the project is much more than what Tesla wins. 26 Dalvagas, Iason. "SWOT Analysis: Tesla Motors, Inc." Value Line - The Most Trusted Name in Investment Research. 27 Washburn, Chris. “Major Case Analysis: Tesla Motors”.