Tesla SWOT Analysis, Competitors, STP & USP

Tesla Motors

Electric Vehicles

Automobiles

Burn rubber not gasoline

Ability to build fully electrically powered vehicles in house

People looking for electric premium sports/luxury cars

Rich and Affluent who are willing to spend more compared to other vehicles

Pure electric drive but still sporty & luxurious

Below are the Strengths in the SWOT Analysis of Tesla:

1. They developed 1^st fully electric sports car “The Roadster”

2. Also a strong supplier to other manufacturers like Toyota

3. Strong technological expertise in the area of electric transmissions & drive train

4. Ability to  develop vehicles completely in house including the sub-assemblies required

5. Their current platform developed for Model S has the ability to be used for their future crossover model or any other model they envision

6. Tesla brand equity and image has improved a lot over years and they are positioned as pioneer in electric cars.

Here are the weaknesses in the Tesla SWOT Analysis:

1.Since they fully develop the vehicles including their sub-assemblies this leads to higher costs of production as economies of scale are not achieved

2.The prices of their products are higher than their competitors who sell combustion engine powered vehicles

3. Heavily concentrated in western countries

Following are the Opportunities in Tesla SWOT Analysis:

1. The growing support by governments across the globe for environmentally friendly vehicles in form of exemptions from duties & other support

2.Improvements in the quality control processes can reduce these costs drastically

3. Launching Tesla cars in newer markets which are still adopting to electric cars but potential is huge like Asia.

The threats in the SWOT Analysis of Tesla are as mentioned:

1. Tesla wants to be able to produce, distribute & sell its cars to average which seems difficult to achieve due to their current business model

2. Their strategy for pricing (skimming) has not been used so far in the auto industry

3. They are currently competing against a technology which has been in use for over hundred years i.e. the combustion engines& also their technology may take time for being optimal for use of masses

Below are the top 5 Tesla competitors:

1. Chevrolet Volt
2. Toyota Prius
3. Honda Civic

4. Toyota Rav4 Hybrid

5. Smart Car