Tesla Ecosystem

BCG Matrix for Tesla

[pic 1]

The Boston consulting growth share matrix reveals an undiversified portfolio for Tesla’s business unit as question mark moving to stars. This is indicative of their high growth rate and profits yet very low but growing market share and negative cash flow. This also accounts the current lack of infrastructure in terms of charging stations, factories, dealerships and supply limitations. Future performance will reveal growth potential and promising growth on the upper quadrant of the BCG Matrix.

Product Life Cycle Stage of Tesla [pic 2]

Currently, the industry is on the innovation curve i.e. in the techies stage and making way for the visionary stage. So if we see, Tesla is currently tapping the early markets of innovators and early adopters. The company in order to reach the favorable quadrant of the BCG matrix has to tap the mainstream markets covering early majority and late majority.

Posing the final question: Is Tesla Really Green?

Even though Tesla lies in the grey zone of being clean using batteries having one of the components as lithium, which is a rare element which requires intensive mining and the battery has to be charged using electricity grid which runs on coal creating pollution indirectly, it is one of the most environment friendly option currently available. The talks of Tesla not being green can also be negated by the fact that Tesla 3 model is a one step closer in building a sustainable ecosystem. If Tesla succeeds in making people shift towards the electric cars, they are going to innovate on the technology aspect of it also owing to the technological prowess of Musk. An example of this can be seen in the development of Powerwall, which is a home battery charging system using electricity generated from roof top solar panels .So Tesla isn’t perfect right now but it is still pushing our society and economy in the sustainable direction.