Tesla Company Profile and SWOT Analysis for Tesla Report
Tesla Inc., founded in 2003, is an American automotive and energy company based in Palo Alto, California. Tesla’s CEO is Elon Musk. Tesla sells electric vehicles as well as renewable energy products, including the solar panels created by SolarCity for which it was once a part of.
Tesla makes many of its products to be environmentally friendly, which, in turn, contributes to Tesla’s mission to “accelerate the world’s transition to sustainable energy.”
Tesla’s energy-saving strategy and luxury-focused designs have propelled it to the top of the automotive industry worldwide. In February 2004, Martin Eberhard and Marc Tarpenning, the original founders of Tesla Motors (former name), met with Elon Musk, who contributed US$6.5 million of the initial US$7.5 million round of investment.
Tesla’s renewable energy paradigm revolutionized the car industry and had a massive global impact. The Roadster, Tesla’s first car, was the first to use lithium battery cells.
Tesla, based in California, has grown in popularity among the American public as a luxury electric car brand with a revolutionary design.
Tesla’s SWOT review would provide a more in-depth view of its business model and future forecasts.
|Palo Alto, California, United States
|US$ 31.8B (2020)
SWOT Analysis for Tesla
A bright future has been predicted for the company by investment firms and stock analysts who look favorably on the recent announcement of increased production and sales forecast. Wall Street is excited about the future of Tesla as the company has continued to innovate throughout its history.
Tesla seems poised for a big technological breakthrough in the automobile industry. With electric vehicles becoming more commonplace than ever, Tesla is ready to take advantage of its innovative technology. Tesla recently lowered the price of several models in order to compete with other luxury car brands and make their vehicles more affordable for future consumers.
Tesla’s competitors include Porsche, Audi, Mercedes-Benz, BMW, and Volvo. Tesla is considered a luxury brand with a price range of approximately $70 000 for their Model S to over $150 000 for the Model X. Tesla faces stiff competition from other luxury car brands as well as from electric car companies such as Nissan and Chevrolet.
Future plans for Tesla include expanding throughout the world and increasing sales with new models.
Tesla’s mission, according to Musk, is to help accelerate the transition to sustainable transportation and electricity, which can be accessed through electric vehicles and solar power. In 2009, Tesla started the development of their first car model, the Roadster.
The Model S sedan debuted in 2012, the Model X SUV debuted in 2015, the Model 3 sedan debuted in 2017, and the Model Y crossover debuted in 2020. The Model 3 is the world’s best-selling plug-in electric vehicle, with over 800,000 sold by December 2020.
Tesla sold 499,550 vehicles globally in 2020, a 35.8 percent improvement over the previous year. In 2020, the company would have manufactured one million electric vehicles.
For the fiscal year 2020, Tesla reported a net income of US$721 million, the company’s first annual profit. The annual revenue was US$31.5 billion, an increase of 28% over the previous fiscal cycle.
Tesla has been the target of several litigations and scandals stemming from CEO Elon Musk’s comments and actions, charges of whistleblower harassment, alleged worker rights abuses, and reportedly unresolved and dangerous technological issues with their goods.
A bright future is predicted for Tesla by their shareholders and stock analysts. The recent announcement of increasing sales and production forecasts looks good for the company as they are able to maintain momentum in the market.
The biggest threat to the company is competition from larger car companies. If Tesla’s future plans are not carried out on time or if their products are not available, Tesla could be left behind and fail to compete with many other luxury car brands.
In order to succeed, Tesla needs to focus on continuing its innovation and growing its product line in order to remain competitive with other large car companies.
SWOT Analysis for Tesla
Tesla Inc. Strengths:
What are Tesla Inc. Strengths?
Tesla automobiles are made with sustainability in mind. Their parts are recyclable, rechargeable, and made with high-quality materials that do not deplete the Earth’s natural resources. The new Roadster model is a zero-emission automobile.
Tesla cars are known for their technological excellence, with high-quality engineering, clean energy, and low carbon emissions. Tesla’s products are aesthetically pleasing to the consumer as well.
Tesla has the most advanced electric car on the market. It is leading the way in battery technology, with a high-density battery consisting of three layers of cells that are each made from plastics and minerals.
Tesla cars also have a great safety rating as they provide airbags, a steel frame, and automatic seatbelts as standard features.
Tesla’s main strength is its technology. Tesla offers battery-electric cars (BEVs) unlike any other company, and this technology has propelled the company to the forefront of electric vehicles.
It also has a following in Silicon Valley and internationally, so it is a popular choice among tech enthusiasts. In addition to this, they have an electric car charging network and offer many different models to suit different needs for drivers of all stripes.
Tesla Inc. Weaknesses:
What are Tesla Inc. Weaknesses?
Although Tesla vehicles produce zero-emission emissions, the company still uses natural resources in the production of their parts and vehicle assembly. Tesla Motors has faced many challenges in its short history, including several recalls for various issues.
Although the Tesla car has the most advanced battery technology, it has a weak engine, so it is not built for speed. It also lacks the ability to accelerate from zero to 60 miles per hour in less than seven seconds like its main competitors, such as Nissan Leaf and the BMW i3.
Tesla’s cars are also expensive to produce at $100,000, which makes them an impractical purchase for those looking for an affordable vehicle.
Tesla Inc. Opportunities:
What are Tesla Inc. Opportunities?
The future is looking bright for Tesla. With the new model Roadster release, Tesla will compete with other luxury brands in the automobile industry. The company is planning to expand its vehicles to other countries in South America, Europe, Asia, and North America, and Australia.
Tesla has a huge opportunity to expand its markets into China and India, which represent huge potential for growth in the electric vehicle industry. Tesla has also been expanding its charging network, and it is currently working to increase the number of charging stations all around the world. However, it can only achieve these goals if it continues to develop safe and efficient vehicles.
Tesla has recently announced an increase in production, which will allow them to compete with larger automakers at a time when the automobile market is booming.
One opportunity for Tesla is to market their cars to urban areas, especially in New York and LA cities. With the increasing trend of people moving to these urban areas, more people will be looking for an electric car that can be recharged within 45 minutes.
This will allow people who have a short commute to use the car throughout the day instead of having only one long trip per day.
Tesla Inc. Threats:
What are Tesla Inc. Threats?
Tesla vehicles are still expensive compared to other luxury car brands. Tesla is currently facing stiff competition from other electric car companies. The company may not be able to maintain the momentum and innovation that it has achieved in the past years. If Tesla cannot keep up with consumer demands, it will lose market share in the electrified vehicle industry.
The biggest threat to Tesla is competition. Tesla is still a small company compared to larger car companies that have been in the industry for over 100 years. Tesla’s recent acquisition of SolarCity, a solar panel company, gives the company a lot more business risk as well.
The main threats to Tesla are from other major car manufacturers. These companies have a lot of money and resources, which could be used to develop better electric cars than Tesla.
They could also introduce more affordable electric cars in an attempt to draw away potential buyers of Tesla. This would be similar to what Toyota did when they released the Prius in 1999, which at that time was the only hybrid car on the market.
Tesla has had its share of problems, including recalls, lawsuits, and malfunctioning vehicles. Tesla lacks customer trust. Many customers who have purchased Tesla vehicles have experienced issues with the cars, some of them quite serious.
Additionally, many people have accused the company of being sexist and anti-LGBTQIA+ in its treatment of employees, which could affect the customer base negatively. Tesla also faces competition from other companies that are rising in the electric car market, such as BMW.