...Tesla Motors: SWOT Analysis Tesla Motors designs, develops, manufactures and sells high performance fully electric vehicles, advanced electric vehicle, powertrain components and stationary energy storage systems. Political, economic, socio-cultural and technological factors have influenced Tesla in complex ways since Tesla is a big player in the EV industry – one of the non-traditional automobile industry segments. The political factors have mostly favored Tesla since the government gives subsidies, tax rebates for EV manufacture. The general economic growth in the US economy have favored Tesla but decreasing oil prices and increasing labor prices have acted as threats to Tesla. The go green concepts have favored Tesla but unfamiliarity around the EV technology have posed threats to Tesla. However, limitations by way of battery technologies and charging of batteries have posed threats to Tesla even though technological developments are taking place in the EV industry around battery and charging technologies The overall threats of micro forces is medium based on porter’s 5 forces analysis. The threat for the substitutions is high and threat from rivals is medium due to few rivals who can match the quality of Tesla cars. There seem to be least threats from suppliers since they are not specialized in EV industry and buyers due to direct sales. More details are provided in exhibit 2 as given below The company has established a good value chain by its own network of sales...
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...“Our goal is to accelerate the advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible” “Move from a mineandburn hydrocarbon economy towards a sustainable solar electric car” SWOT Strengths CEO (Elon Musk) compares Tesla to the marine corp saying like the marines, tesla only recruits the best CEO has good track record, founded PayPal and SpaceX as well as being a car enthusiast Tesla will only sell electric cars and nothing else, no hybrids, diesel, or ethanol Tesla Superchargers (charging stations) are 16 times faster than other public charging stations Weaknesses CEO Elon Musk is CEO of tesla as well as SpaceX which can be stressful and risky as he is focused on two different companies at one time. Tesla only sells electric cars which many people are still skeptical about. The Tesla model S is the only current model Limited operating history, only been in business 10 years Opportunities The world is running out of oil therefore people will have no choice but to turn to electric cars Can use their battery technology for other purposes such as storing power from solar panels SpaceX which Elon Musk is also the CEO to has a long term goal of colonizing Mars. he has been quoted saying “For sure Tesla would make the first people transporter on Mars!” Threats As the idea of electric cars becomes more fond, other companies with higher financial resources are exploring the alternative route ...
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...TESLA MOTORS SWOT Analysis Anandita Jindal Tesla Motors is a car company that designs, manufactures and sells electric vehicles. Ian Wright, JB Straubel, Marc Tarpenning, Martin Eberhard and most notably Elon Musk founded this public company in 2003. Its headquarters is located in Palo Alto, California, with its main production plant in Fremont, California. The company was named after Nikola Tesla, a renowned electrical engineer and physicist. Its goal is to increase the number of EV’s (Electric Vehicles) available to the market to help make it more mainstream. Currently, Tesla motors have produced two models, the Tesla Roadster and the Model S, and has unveiled a third, the Model X. In the Future, the company plans to produce family-sized minivans, electric SUV crossovers, and electric fleet vans for municipal governments. Other business includes collaborations with other companies such as Toyota, Daimler, Freightliner Trucks and Panasonic. Although the company has earned much success, it has hit its share of bumps along the way such as lawsuits, recalls and founder disputes. The current CEO, Elon Musk, also holds the title of Product Architect. Musk is also a co-founder of PayPal and Space Exploration Technologies as well as the chairman/CEO of SpaceX and chairman of SolarCity. It’s hard to say if Elon Musk is firstly an entrepreneur or an engineer. Musk has had great success and became a multimillionaire in his late twenties when he sold his first startup company,...
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...TESLA MOTORS’ DISRUPTIVE INNOVATION Ushnik Dasgupta New York University Global Innovation April 26, 2016 ABSTRACT Tesla Motor’s journey since its foundation in 2003 to being ranked third among the most innovative companies in the world in 2015 according to Fortune (Murray, 2015) and the third most innovative company in the automotive sector in 2016 according to Fast Company (The Most Innovative Companies of 2016: Top Companies by Sector, 2016), demonstrates their ability and determination to upset the status quo and eagerness to disrupt the automotive market by trying to change the global preference towards greener electric vehicles. However, is Tesla’s approach towards this niche market by manufacturing models...
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...SWOT Analysis of Tesla Motors Strength – In the first part of SWOT analysis of Tesla Motors, Strength are discussed. * Energy efficiency: the most energy efficient car as it uses renewable energy such as solar power. * Supplier to other manufacturer: Tesla is a major supplier of car parts for Toyota. * Ability to manufacture environmental friendly cars: Tesla has pure and complete advantages over other companies in manufacturing environmental friendly cars. * Cost reduction advantages: they outsource secondary components to other companies which gave them acquiring cost reduction advantages. * Existing strong investors and partners: Tesla acquired strong investor’s partners in recent years such as Google, Daimler, Panasonic, and Toyota motors. Weakness – In second part of SWOT analysis of Tesla Motors, weakness are discussed. * Bad impact from Model X: Tesla recently launched high-tech car Model-X which price is expensive it compared with that of other cars. * Time consuming to make a delivery: Tesla says if you order a car, you will have it delivered after one year which cannot be a strong distribution process. The manufacturing capacity is so limited. * Bigger Debt Portion: Tesla has large portion of debt (and a negative $455 million cash flow) in its financial statement which makes it vulnerable. * Short story of experience: As Tesla has established in the year 2003, it does not have sufficient experience comparing to other car manufacturers...
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...Pestel : Political and legal: * strong impact of lobby * unions are powerful in US * subsidies to support R&D for alternative cars technologies (ex: governments supports investment in hydrogen powered vehicle research) * US government currently offers economic incentives to encourage electric vehicle ownership * Voluntary export restraints : 1981 Reagan administration to control exportations * Reinforcement of laws concerning safety of customers Economic: * increase of fuel price * high selling prices: not adapted to all customers (crisis since 2008, decrease of purchase power) * the big 3 automakers (GM, Ford, Chrysler) : they dominate US automotive industry social: * cars are integrated in US society * customer tastes and preferences change very often * cars are a common way to differentiate from some social class (pyramyd’s Maslow : need of recognition, self esteem) * social issue like unemployment lead to change in consumptions * people are more and more eco-friendly but some people are still reluctant to buy all electric cars technological: * high cost of R&D : to improve efficiency and quality of vehicles * fast evolution of technologies: technological surveillance mandatory to meet customers’ needs * Many competitive car manufacturers are becoming more innovative(more choices and options such as keyless entry, ignition, anti heat glass, and audio/video systems.) In addition to some...
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...The subsidiary of Telsa Motors in China was registered in the year 2006, but full operations began in 2013 when the trademark issue for Telsa Motors was resolved. Organizations must learn that their trademark is an international recognized concept but in some overseas market there can be problems with the mark of a Corporation. The best way to overcome these matters can be through franchises with existing domestic Corporations. Telsa Motors, Inc. is an American multinational Company that manufactures designs and sells electric vehicles, components of power train and battery products. Telsa is a publicly traded Company that sells its stock on the NASDAQ stock exchange market under the symbol TSLA. Marc Tarpenning and Martin Eberhard started Tesla Motors way back in 2003 (Hettich and Stewens 3). Business has been average for Telsa Motors, Inc and it is only on 2013 when Telsa Motors posted their first profits since the year 2003. An analysis of Telsa Motors reveals that they have ventured into the Chinese market where it is expected that they face several challenges and influences from the business environment. Telsa Motors trades its shares on the NASDAQ stock exchange...
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...Brand Audit of TESLA Motor’s Owner The owner and director of Tesla Motor’s is Elon Musk, a South African born Canadian American, Inventor, Business magnate and global investor. (Johnston, 2014) His initial rise to Global success was due to his company PayPal which generated huge revenue providing secure monetary transactions online. PayPal was sold to eBay for 1.5 billion dollars in the year 2000. (Bellis, 2014) History Tesla Motor’s was started in 2003 by American entrepreneurs Martin Eberhard and Marc Tarpenning, The name Tesla giving reference to the great electronic Inventor Nikola Tesla. The company was founded in the Silicon Valley, California. In 2004 Elon musk became the chief financial officer after contributing more than 30 million to the new Project aiming to develop the first electric sports car. (Schreiber, 2014) By 2007 Eberhard moved to join the advisory board of Tesla and Elon Musk took over as the CEO. It was not until 2008 until Tesla released its first car called the “Roadster” the first completely electric car. This car was able to achieve up to 245 miles (394 km) on a single battery charge. This was a huge land mark for the electric car’s feasibility in such a competitive and stagnant Automotive Market. With an acceleration of 0-60 miles (94km) in less than 4 seconds and a top speed of 125 miles (200km) this car proved to be competitive in the sports car category. (Schreiber, 2014) Products and Service Currently in 2014 the only tesla car for sale...
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...Tesla Motors Strategic Analysis Prepared by: Lexen Beran Brenna Hayes Travis Heidemen Jenna Hughes Jake Latimer In Partial Fulfillment Of the Requirements For: MANGT 595: Business Strategy M/W/F at 12:30pm 1 Table of Contents Table of Contents…………………………………………………………………...……2 Executive Summary……………………………………………………………………...3 Introduction………………………………………………………………………………4 External Analysis………………………………………………………………………...5 Internal Analysis…………………………………………………………………………8 Strategic Challenges………………………………………………………………….…10 Strategic Recommendation……………………………………………………….……11 Implementation Plan……………………………………………………………...……13 Conclusion………………………………………………………………………………14 Bibliography……………………………………………………………….……………15 Appendices………………………………………………………………………………16 2 Executive Summary Tesla’s uniqueness and innovative products has served as a catalyst to an entire industry seeking an alternative to the complacent market of gas-powered only vehicles. But what strategies where utilized in their great success? How will the firm continue to innovate after the growth stage? This report will introduce you to Tesla and its current operating environment by examining the industry in which it operates via internal and external analysis. The report will tell of how Tesla pioneered technologies that were mostly untapped and unavailable to the masses. By examining the resources and capabilities of the firm, it will better help to delineate the...
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...How Tesla Motors can manage the extreme competition from large and premium manufactures Daniil Chaika (119102547) Workshop Tutor: John Davison SIM336 - Strategic Management ------------------------------------------------- Contents 1.0 Introduction ……………………………………………………………………………….3 2.0 Company Background………………………………………………………………….….3 3.0 PESTEL Analysis……………………………………………………………...…………..3 4.1. Political……………………………………………………………………………..3-4 4.2. Economic……………………………………………………………………………...4 4.3. Social………………………………………………………………………………….4 4.4. Technological…………………………………………………………………………4 4.5. Environmental………………………………………………………………………...5 4.6. Legal…………………………………………………………………………………..5 4.0 Porter’s 5 Forces Analysis…………………………………………………………………5 5.7. The Threat from New Entrants……………………………………………………..5-6 5.8. The bargaining power of Buyers……………………………………………………...6 5.9. Threat of Substitution…………………………………………………………………6 5.10. The bargaining power of Suppliers…………………………………………………..6 5.11. The Intensity of Rivalry in the Industry……………………………………………6-7 5.0 Value Chain Analysis (VCA)……………………………………………………………...7 6.12. Primary Activities…………………………………………………………………..7-8 6.13. Support Activities…………………………………………………………………..8-9 6.0 SWOT Analysis……………………………………………………………………………9 7.14. Strengths…………………………………………………………………………..9-10 7.15. Weaknesses………………………………………………………………………10-11 7.16. Opportunities………………………………………………………………………...
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...How Tesla Motors can manage the extreme competition from large and premium manufactures Daniil Chaika (119102547) Workshop Tutor: John Davison SIM336 - Strategic Management ------------------------------------------------- Contents 1.0 Introduction ……………………………………………………………………………….3 2.0 Company Background………………………………………………………………….….3 3.0 PESTEL Analysis……………………………………………………………...…………..3 4.1. Political……………………………………………………………………………..3-4 4.2. Economic……………………………………………………………………………...4 4.3. Social………………………………………………………………………………….4 4.4. Technological…………………………………………………………………………4 4.5. Environmental………………………………………………………………………...5 4.6. Legal…………………………………………………………………………………..5 4.0 Porter’s 5 Forces Analysis…………………………………………………………………5 5.7. The Threat from New Entrants……………………………………………………..5-6 5.8. The bargaining power of Buyers……………………………………………………...6 5.9. Threat of Substitution…………………………………………………………………6 5.10. The bargaining power of Suppliers…………………………………………………..6 5.11. The Intensity of Rivalry in the Industry……………………………………………6-7 5.0 Value Chain Analysis (VCA)……………………………………………………………...7 6.12. Primary Activities…………………………………………………………………..7-8 6.13. Support Activities…………………………………………………………………..8-9 6.0 SWOT Analysis……………………………………………………………………………9 7.14. Strengths…………………………………………………………………………..9-10 7.15. Weaknesses………………………………………………………………………10-11 7.16. Opportunities………………………………………………………………………...
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...Tesla Motors 3500 Deer Creek Palo Alto, CA 94304 650-681-5000 650-681-5101 I. I. Background and Introduction The focus of this analysis is on Tesla Motors and the electric vehicles they design, develop, and manufacture. Tesla Motors was incorporated in 2003 and using technology developed at the headquarters in California the company introduced the Tesla Roadster in 2008 (Tesla Motors, 2010b). On June 28, 2010 the company filed an initial public offering that was accepted by the SEC. They have also become business partners with Toyota Motor Corporation to develop an electronic version of the Toyota RAV4 to be sold in 2012 (Tesla Motors, 2010b). The importance of this analysis is two-fold. First, if a company can successfully develop a fully electric vehicle that is affordable and has mass market appeal it would mark a realistic solution to the diminishing worldwide oil supplies. Second, the technology that would be developed could be used as a springboard for the entire automotive industry. As with any business that is being hinged on new technology, there are significant risks and issues that could potentially be detrimental to the company. Being a new company, there is a very limited operating history for potential investors to go by (Tesla Motors, 2010b). Therefore, future earnings cannot be predicted based on past earnings. The company is losing money and in the SEC filing for the last quarter they state that they expect to keep losing money for...
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...Verbatim copying of material from the Internet, including tables and graphics. * Copying other students’ notes or reports. * Using paid or unpaid material prepared for the student by individuals or firms. B. Penalties for plagiarism ranges from failure in the TMA to expulsion from the university. Declaration: I hereby declare that the submitted TMA is my own work and I have not copied any other person’s work or plagiarized in any other form as specified above. Student Signature ……………………. Tutor’s Feedback Tutor Name: | Tutor Signature: | Date returned: | TESLA MOTORS Working at Tesla Motors is extremely energizing. representatives realize numerous lessons that will refer to for whatever remains of their life. Tesla have an incredible workforce and an extraordinary gathering in administration....
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...Budget…………………………………………………………………………...Page 12 Overall Communication Objectives………………………………………………………..Page 13 Overall Creative Strategy…………………………………………………………………..Page 13 Creative Execution………………………………………………………………………....Page 15 Media Strategies……………………………………………………………………………Page 18 Activity Schedule…………………………………………………………………………..Page 21 Plan Assessment and Evaluation…………………………………………………………...Page 22 Bibliography………………………………………………………………………………..Page 23 Introduction Tesla was created in 2003 in the Silicon Valley by a group of engineers including current CEO, Elon Musk. They created the first fully electric vehicle and then released the Model S in 2012 which came to market as the first fully electric luxury vehicle. The Model S can drive 426 kilometers on a single charge. Tesla tapped into a market that is still expanding and growing with more and more competitors entering the market every day. Tesla is a young and innovative company with many new ideas and are planning to launch a new vehicle in 2015. Right now because Tesla is such a new company they are only able to produce 22,000 vehicles internationally, which means there is currently a greater demand than there is supply. The IMC plan our company has developed will help solve this...
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...SECTION I: Introduction/Executive Summary Tesla Motors, Inc. is an American company that designs, manufactures and sells electric cars and electric vehicle powertrain components. Named after the scientist Nikola Tesla, Tesla Motors ($TSLA) was founded in 2003. Exactly who founded Tesla Motors can be discussed, but it was probably by a group of intrepid Silicon Valley engineers Martin Eberhard, Marc Tarpenning, and Ian Wright. Their goal was to build an electric vehicle with the same performance as a Porsche and more environmental friendly than a Toyota Prius. The problem was that the founders didn't have the money needed to realize their idea, so they contacted Elon Musk, who decided to invest in the company. Elon Musk had earlier founded the companies Zip2, PayPal, and SpaceX. The difference between Elon Musk and the founders was that Elon Musk wanted Tesla Motors to become an improved General Motors with several car models, while the original founders wanted to design only a sports car. Elon Musk became interested in electric cars because he is well aware of peak oil. The idea behind peak oil is that oil is a finite resource we will run out of. Elon Musk believes the production of oil will begin to decrease after year 2020. As the production of oil decreases, the price of oil will increase and more people will buy electric cars SECTION II: Current Situation Tesla Motors headquarters is in Palo Alto, California. Its goal is to speed up this transition from gasoline cars to...
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