Tesla SWOT Analysis, Competitors, STP & USP

Published by MBA Skool Team, Last Updated: February 05, 2021

SWOT analysis of Tesla analyses the brand/company with its strengths, weaknesses, opportunities & threats. In Tesla SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like Tesla to benchmark its business & performance as compared to the competitors and industry. Tesla is one of the leading brands in the automobiles sector.

The table below lists the SWOT (Strengths, Weaknesses, Opportunities, Threats), top Tesla competitors and includes Tesla target market, segmentation, positioning & Unique Selling Proposition (USP).

Tesla SWOT Analysis, Competitors, Segmentation, Target Market, Positioning, USP & Brand Analysis Table
Tesla Brand Analysis
Parent Company

Tesla Motors


Electric Vehicles



Tagline/ Slogan

Burn rubber not gasoline


Ability to build fully electrically powered vehicles in house

Tesla STP
Tesla Segmentation

People looking for electric premium sports/luxury cars

Tesla Target Market

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

Tesla Positioning

Pure electric drive but still sporty & luxurious

Tesla SWOT Analysis
Tesla Strengths

Below are the Strengths in the SWOT Analysis of Tesla:

1. They developed 1st 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.

Tesla Weaknesses

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

Tesla Opportunities

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.

Tesla Threats

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

Tesla Competition

Below are the top 5 Tesla competitors:

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

4. Toyota Rav4 Hybrid

5. Smart Car

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Similar analysis has also been done for the competitors of the company belonging to the same category, sector or industry. Browse marketing analysis of more brands and companies similar to Tesla. This section covers SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP of more than 2800 brands from over 20 industry sectors.

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