Tesla Motors SWOT Analysis, Competitors & USP

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SWOT Analysis of Tesla Motors with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

Tesla Motors

Parent Company

Tesla Motors


Electric Vehicles



Tagline/ Slogan

Burn rubber not gasoline


Ability to build fully electrically powered vehicles in house

Tesla Motors STP


People looking for electric premium sports/luxury cars

Target Group

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


Pure electric drive but still sporty & luxurious

Tesla Motors SWOT Analysis


Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis of Tesla Motors :

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


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


1. The growing support by governments across the globe for environmentally friendly vehicles in form of exemptions from duties & other support
2.Supports the Mercedes’ Smart car, which can lead to learning which will help them with their passenger cars which they plan to launch in near future
3.Improvements in the quality control processes can reduce these costs drastically


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 Motors Competition


Below are the 5 main Tesla Motors competitors :

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

4. Toyota Rav4 Hybrid

5. Smart Car

The brandguide table above concludes the Tesla Motors SWOT analysis along with its marketing and brand parameters. Similar analysis has also been done for the competitors of the company belonging to the same category, sector or industry.


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