Tesla: External Assessment

Dear Mr. Elon Musk

Tesla creates the high-performance, highly efficient electric cars to the customer. Tesla has strong technological expertise in the field of electric transmissions. It is clear Tesla need to have an in-depth research and development on its battery. This is kind of the threat to the whole electric vehicles industry. In addition, Tesla needs to find the possible way to reduce the cost to produce a vehicle. You cannot let your company loss every year, the company need to find the way to have a sustainable development in the long run. The company still facing the manufacturing challenge, The inability to deliver products on time; customer always need to pre-order the vehicles waiting for a long time. I recommended the Tesla motor practice the international market development strategy in the next 5 years. I prefer to enter into Asia market (e.g: China) and making a partnership with companies BYD motor who pursuit same mission to develop green products. Tesla could become a global brand while the company could capture more market share and remaining the committed to its roots. The following report will helps the company shaping an alternative by depth analyzing the internal and external factors and financial statement; the development of international market strategy would be the best solution for the Tesla Motor.

External Assessment

The gas engine is one of the major causes of the climate crisis. Transportation burning oil that create exhaust emissions and noise from engines, pollute cities, and makes nations over-dependent on the foreign oil.

The first opportunity is the demand of the electric vehicle is high; people are willing to purchase the electric vehicles. To be specific, People care more and more about the environmental issues; customers are getting more awareness of environmental effects of production. Transport activities contribute to environmental problem, ranging from the local (noise and Carbon dioxide) to global (climate change). Compare to traditional gas-power vehicle, the electric motor charged from the electricity grid, which are very quiet and do not emits any exhaust gases. Thus, the electric vehicle has environmental advantages than the regular gasoline-powered vehicles.

  One threat to the electric vehicle industry is that people are still suspicious of electric cars. Like the case mentioned, some consumers are still reluctant to purchase in all-electric motors, especially when there are such more alternative technologies competing in the market. In addition, The electric vehicle industry in the developing period, regarding the reliable and safety of electric vehicles would be an issue; it even doesn’t have a quasi-standard for the all-electric car, which means electric vehicle might creates fire-related incidents; it may scare away customers. Auto industry makes a lot effort on those core technologies that it only has little incentive to disrupt it by expanding the electric motor. From the case, it illustrated that there is no exactly reduction sales in traditional gas-powered vehicles because this industry has been continuously improved for long time; it entrenched in some customer’s mind who trust traditional for sustainability rather than the electric motors; especially when traditional vehicles are making effort on exchanging its model to more fuel-efficient alternatives.