SWOT analysis on Tesla

SWOT analysis on Tesla :

Parent company : Tesla Motors

Category : electric vehicles

Sector : automobile

Slogan : « Burn rubber not gasoline »

Segment : people looking for electric premium sports/ luxury cars

Target group : Rich and affluent who are willing to spend more compared to other vehicles

Position on the market : Pure electric drive but still sporty and luxurious

SWOT analysis :

Strenght :

1. They developed 1st fully electric sports car “The Roadster”

2. Also a strong supplier to other manufacturers like Toyota

3. Strong technological expertise in the area of electric transmissions & drive train

4. Ability to develop vehicles completely from the eginning of the product line to the end by their own way

5. Their current platform developed for Model S has the ability to be used for their future crossover model or any other model they envision

Weakness :

1.They fully develop the vehicles including their sub-assemblies which leads to higher costs of production

2.The prices of their products are higher than their competitors who sell combustion engine powered vehicles

3.Tesla Motors is only selling electric cars, and people are still suspicious of electric cars. To tackle the problem, Tesla Motors have begun to build Tesla Stores. People can visit these stores and learn why electric cars belongs to the future.

4.The infrastructure around electric cars does not exist. Tesla Motors are doing their best to change this by building Superchargers, which are like gas stations but for electric vehicles only. It will be free to charge your Tesla Motors car at these stations. They are also developing stations where you can replace the battery with a recharged battery since it takes maybe 30 minutes to charge the battery at the Supercharger.

5.Model S is the only car model. But Tesla Motors are also designing an SUV called Model X. And in the future, they have plans to design a cheap electric car, a new sports car, and an electric truck.

6.Tesla has a very sparse network to sell vehicles.

Opportunity :

1. The growing support by governments for eco-friendly vehicles as financial aids

2.Supports the Mercedes’ Smart car, which can lead to learning which will help them with their passenger cars which they plan to launch in near future

3.Improvements

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