Tesla SWOT Analysis

Published by MBA Skool Team, Last Updated: August 26, 2021

Tesla SWOT analysis evaluates the brand by its strengths, weaknesses, opportunities & threats. In SWOT Analysis of Tesla, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

Tesla is one of the leading brands in the automobiles sector. The article below lists the Tesla SWOT, competitors and includes its target market, segmentation, positioning & USP.

SWOT Analysis of Tesla

For Tesla, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.

Tesla Strengths

The strengths of Tesla looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value.

A list of strengths is mostly the starting point in starting SWOT analysis. Below are the Strengths in the SWOT Analysis of Tesla :

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

Tesla Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Tesla SWOT Analysis:

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

Tesla Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. 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. 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

Tesla Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be 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. 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

Tesla Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 6 competitors of Tesla:

1. Toyota

2. Honda Motors

3. Volkswagen

4. Mercedes Benz

5. BMW

6. Audi

Hence this concludes the Tesla SWOT analysis.

Continue reading more about the brand/company.

About Tesla

Tesla Overview
Parent Company

Tesla Inc


Electric Vehicles



Tagline/ Slogan

Burn rubber not gasoline


Ability to build fully electrically powered vehicles in house

Tesla STP

People looking for electric premium sports/luxury cars

Target Market

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


Pure electric drive but still sporty & luxurious

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.

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 2000 brands from over 20 industry sectors.

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