Tesla SWOT Analysis

SWOT analysis is a management strategy framework used by businesses like Tesla for assessing organization’s Strengths, Weaknesses, Opportunities, and Threats to guide strategic decision-making. Tesla was founded in 2003 with the aim of building premium electric cars which use don’t use fossil fuels as a source of energy. All the electric cars existing in the market compared nowhere when it came to the performance of petrol or diesel engines, that was one of the prime reasons why even after so many years of existence, electric engine vehicles were not in demand. By examining these internal and external factors, Tesla can capitalize on advantages, mitigate risks, and chart a more competitive path forward. Amid rising concerns for global warming and depletion of resources, the founders of Tesla wanted to hasten the shift of humanity from fossil fuels to more sustainable sources of energy. Let us start the SWOT Analysis of Tesla below.

Tesla Strengths

1. Tesla is one of the world's leading automobile and sustainable energy brands in the world
2. Tesla is a pioneer in developing electric cars, solar panels, sustainable batteries & more environmental friendly products
3. The company has more than 70,000 people working in its workforce
4. Annually, Tesla produces more than 1 million electric cars
5. The brand has its stores & direct presence in more than 30 countries 
6. Several acquisitions of technology companies have made the brand stronger
7. Tesla has also invested in cryptocurrency with a view of allowing financial transactions through them
8. The company allows its competitors to use its technology so as to contribute in an environmental friendly world
9. Billions of dollars have also been invested by Tesla in making driverless or self-driving cars

Above are the strengths in the SWOT Analysis of Tesla. The strengths of Tesla looks at the key internal factors of its business which gives it competitive advantage in the market and strengthens its position.

Tesla Weaknesses

1. The company has a tough competition as compared to cheaper cars running on petrol & diesel
2. Legal issues in the past have often affected the brand image of the company
3. Traditional auto makers like Hyundai and Ford are now growing really fast in the EV vehicles 

These were the weaknesses in the Tesla SWOT Analysis. The weaknesses of a brand are certain aspects of its business which it can improve.

Tesla Opportunities

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

Above we covered the opportunities in Tesla SWOT Analysis. The opportunities for any brand can include prospects of future growth.

Tesla Threats

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. Changing government policies, economic recessions etc. can affect the business of the company
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
4. Older automobile companies are now using their distribution and dealer network to foray into the EV segment

The threats in the SWOT Analysis of Tesla are as mentioned above. The threats for any business can be external factors which can negatively impact its business.

Hence this concludes the Tesla SWOT analysis.

About Tesla

The table below gives the brand overview along with its target market, segmentation, positioning & USP

This article has been researched & authored by the Content & Research Team which comprises of MBA students, management professionals, and industry experts. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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