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.
...view middle of the document...
* Short story of experience: As Tesla has established in the year 2003, it does not have sufficient experience comparing to other car manufacturers like Toyota, Fords, or Mazda.
Opportunities – In the third part of SWOT analysis of Tesla Motors, opportunities are discussed.
* Demand of the kind: the demand of this kind of cars is increasing day by day.
* People are becoming more concerned: As mass people are becoming more concerned about the environmental pollution of using carbon producing car, they will soon be converting to environmental friendly cars.
* Subsidy programs: Many countries including USA offer subsidies to these types of green energy companies. This makes the company conserve much better potentials.
* Cost Reduction: QC processes can enormously reduce these costs drastically if utilized wisely.
Threat – In the fourth & final part of SWOT analysis of Tesla Motors, threats are discussed.
* Expensive: recently released model S can be can be cost near to $100,000. Even though, the price may seem reasonable considering the quality; it remains unattainable for most middle class Americans.
* Strong Opposition: Well-capitalized giant companies expose threats to Tesla
* Increasing competitors: The number of companies in producing electronic cars is increasing day by day, that results increasing number of new competitors eg. Volkswagen.
* Less attractive to young generation: These type of cars are less attractive to young generation.
Conclusion: Outcomes of SWOT analysis of Tesla Motors
SWOT analysis of Tesla Motors showed that it has great strength and opportunities as well as weakness and threats. But if we consider about the future, it has great chance to enormous expansion.