Analyze the Market Environment for the Growth of Tesla Using a Petsel Analysis?

1.Analyze the market environment for the growth of Tesla using a PETSEL analysis?

A. Tesla targets the upper middle class, who has a higher income. Through its journey the company has been manufacturing premium-quality, high-performance electric vehicles by accelerating the world’s transition from carbon-producing, gasoline-powered vehicles to energy –efficient, environmentally responsible electric vehicles. The company has been operating in an industry where it can find many opportunities though its core competencies. The general environmental conditions surrounding the company are analyzed below.

Economic Segment

 According to “The Great Recession” the rate of unemployment rate was high in recent years and people were more conservative on spending during the last few years. The demand of high priced luxuries including Tesla decreased under the economic environment. However the trend has been changing during the years with the increasing price for gasoline and a diminishing availability of petroleum products and limited natural resources making the automobile industry to look for an alternate source to fuel the vehicles. Electric power can be considered as best alternative for running the vehicles at a very low cost compared to other traditional fuels.

Political/Legal Segment

 Governments around the world are fairly positive towards electric vehicles and encourage electric vehicle adoption as an alternative transportation technology. Policies are usually in forms of government subsidies for electric vehicle producers and consumer price incentives. These policies give motivation to experts to work on the technological development as well as manufacturers to produce the vehicles for public. The US government has recognized the uses of environmentally friendly vehicles and has approved a federal tax credit of $7,500 in though form of rebate encouraging the customers to create an eco friendly environment.