Tesla Swot Analysis

Strengths

• Technological advances: Tesla offers comfortable and uniquely designed vehicles that provide the speed and power of a gas-alternative.

• Strong industry position: Tesla ranks second after Nissan in the electric car industry, an impressive feat considering the company’s 11-year history (Peerce-Landers, The Motley Fool).

• Environmentally friendly: Tesla’s vehicles produce a smaller carbon footprint Weaknesses

• Functionality: The Company focuses too much on driver experience that it neglects a “host of issues that stand in the way of everyday use of the car” (Sullivan, Harvard Business Review). Many functional problems such as battery life take a toll on the reputation of Tesla’s products.

• Affordability: Tesla vehicles are priced higher than most if not all of its competitors, which may affect consumer decision.

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Opportunities

• Market growth: The market for electric cars is fast growing and demand for electric vehicles will increase in the future.

• Innovation: Traditional car makers such as Ford and GM are not innovating and

• Oil shortage: While oil prices are rising, the availability of oil is also a concern of the near future. Consumers will turn to electric alternatives when oil becomes scarcer. Threats

• Competitors: Consumers who can afford a Tesla may choose to buy more powerful vehicles at a similar price range.

• Environmental concerns: Tesla’s vehicles uses lithium-powered batteries; the soon-to-be-established LI-battery gigafactories could be contributing to social and environmental concerns,

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Tesla