In this article, we will explore the SWOT analysis of Tesla, one of the best automotive companies in the world, by discussing strengths, weaknesses, opportunities and threats.But before we analyze SWOT of Tesla, we must have knowledge of Tesla Inc.
About Tesla: An Overview
The business magnate Elon Musk founded Tesla Inc., an American automotive company. The name Tesla originated from the famous inventor Nikola Tesla. Tesla has brought a revolution by manufacturing electric vehicles. It is also a clean energy company, which is committed to accelerate sustainable renewable energy solutions. Tesla Inc. aims at reducing the use of fossil fuels and relieving the effects of climate change on the world.
The special features of Tesla’s electric vehicles are advanced technology, high-performance and long range. Tesla’s different models of electric vehicles include Model X, Model Y, Model 3, Cybertruck, Powerwall and many more. Its renewable energy products include energy storage systems, solar panels and solar roofs.
The Company has a significant market share in the electric vehicle industry. The unique feature of the company is that the electric vehicles models merge sustainability with advanced technology.
Tesla About
| Name | Tesla Inc. |
| Founder | Elon Musk |
| Founded | 1 July 2003 |
| Headquarters | Austin, Texas, United States |
| No of Employees | 140,473 |
| Industry | Automotive |
| Market Cap* | $839.6B |
| Website | www.tesla.com |
SWOT Analysis of Tesla
Strengths of Tesla
- Effective Marketing Strategy: Tesla focusses on unconventional advertising. Its CEO’s social media presence indicates that the company advertises new releases through social media. Its CEO Elon Musk’s personality and social media engagement have increased the brand’s awareness. Tesla’s effective marketing strategy is low cost.
- Innovative Company: Tesla is famous for its advanced technology in electric vehicles. Its batteries, self-driving capabilities and electric motors prove that the company focuses on research and development and innovation.
- Strong Brand Portfolio: Tesla’s strong brand image has built a loyal customer base. Its innovative technology and commitment to social responsibility have helped the company to build a strong portfolio.
- Vertical Integration: Vertical integration reduces costs and enhances efficiency. Tesla has adopted a vertical integration policy in the supply chain. Thus the company supervises every step of the production process.
- Sustainability: Tesla emphasizes sustainability and so produces several sustainable energy products. The company has diversified its businesses and thus it can reduce overdependence on electric vehicles.
Weaknesses of Tesla
- Mechanical Issues: Tesla faces manufacturing and mechanical issues. Cutting-edge technology takes much time to release new vehicles. Delay in introduction of the model X caused customer dissatisfaction.
- Battery Issues: Tesla designs and manufactures battery electric vehicles. So, battery shortage may be a great issue for Tesla. The scarcity of batteries does not allow Tesla to meet the rising demand for electric vehicles.
- Open-Source Strategy: Elon Musk’s open source strategy may expose Tesla to fierce competition.
- Expensive: Tesla’s electric vehicles are expensive and so are less accessible to broader customers. The costs of Tesla’s electric vehicles are higher than traditional gasoline-driven vehicles.
- Government Incentives: Tesla gets benefits from the Government incentives, which are subject to change. The change in government incentives may affect Tesla in future.
Opportunities of Tesla
- Demand For Electric Vehicle: The demand for electric vehicles is expected to grow in the near future.
- Global Presence: Tesla has stepped into the developed countries but yet to reach the developing countries. The company is expected to expand its sales to the emerging markets in the coming years.
- Advanced Technology: Tesla is a well-renowned company in the world and famous for its advanced technology like renewable energy technology. There is an opportunity to develop new battery technologies and improve self-driving capacity.
- Chance for Collaborations: There is a chance for partnerships and collaborations with other companies of the world. This collaboration may help Tesla to expand its reach and to build a more loyal customer base.
Threats of Tesla
- Cybersecurity Risks:Tesla’s production depends on advanced technology and software. So, Tesla is vulnerable to cybersecurity risks.
- Geopolitics: The turbulence in the geopolitical environment may affect Tesla as it is a globally recognized company.
- Government Regulations: As Tesla gets benefits from the government incentives, change in government rules and regulations may affect Tesla’s production.
- Complex Supply Chain: Tesla’s supply chain depends on a wide network of partners and suppliers. Any disruption in the supply of raw materials may affect the company’s production.
- Fierce Competition: Tesla faces challenges from traditional automakers. This competition may force Tesla to reduce high market share.
Conclusion
Thus we can conclude Elon Musk’s Tesla is a hi-tech company famous for its environmental responsibility and self-driven electric vehicles. Its strengths and opportunities can make it a world’s number one automotive company. Tesla needs to solve weaknesses and face challenges from its competitors.
