Tesla SWOT Analysis 2024 – TESLA, Inc.

531 2

Tesla SWOT Analysis analyzes, Tesla Inc. was an American start up that was powered by Silicon Valley. Nikola Tesla was an inventor and scientist who gave Tesla his name. His achievements in radio technology and electrical engineering were remarkable. Tesla, Inc., formerly Tesla Motors Inc., is a dynamic automotive and energy solution organization that has achieved great success. Because of its dominant place in the global market, it is known for its innovative approach.

Did You Know?

Together, the Tesla models spell as (S3XY).

S = Model S
E = Model 3 
X = Model X
Y = Model Y

Tesla’s energy-saving approach and luxury centric designs have made it one of the top automobile industries worldwide. Martin Eberhard and Marc Tarpenning, the initial founders of Tesla Motors (former name) met with Elon Musk in February 2004, who contributed US$6.5 million of the initial US$7.5 million round of investment. Tesla revolutionized the automobile industry by its clean energy model and created a huge global impact. Tesla’s first vehicle, the Roadster became the first automobile to use lithium battery cells. Headquartered in California, United States, Tesla has gained popularity among the American public as a premium electric car model with an innovative design.

This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct a SWOT analysis by Tesla.

Tesla At A Glance – Tesla SWOT Analysis

Company: TESLA, Inc.
Founders: Elon Musk | Marc Tarpenning | Martin Eberhard | Ian Wright | JB Straubel
Year of establishment: 2003
CEO: Elon Reeve Musk
Headquarters: Palo Alto, California
Employees (Dec 2020): 1,73,000
Ticker Symbol: TSL
Type: Public
Annual Revenue (Dec 2020): $32.5 Billion
Profit net income (Dec 2020): $997 Million

Products & Services: Automobiles | Commercial Vehicles | Electric cars | Electric vehicles |  Automobile Repair | Energy generation  | Storage systems

Company Website: www.tesla.com

Tesla Competitors 

Competitors: 2018 Kia Soul EV | 2018 BMW i3 | 2018 Nissan Leaf | 2018 Volkswagen e-Golf | 2018 Hyundai Ioniq EV | 2018 Chevrolet Volt EV.

Tesla SWOT Analysis – SWOT Analysis Of Tesla

SWOT Analysis Of Tesla analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Tesla SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Tesla SWOT Analysis. Below Is The Detailed SWOT Analysis Of Tesla.

Tesla Strengths – Tesla SWOT Analysis

1. A Top Employer Company: Every organization is only as good as the people it employs. It is a key factor in Tesla Inc.’s extraordinary success. Wall Street Journal reports that Tesla has emerged as an ideal company for employees due to its diversity and innovation-encouraging culture. Recently, it was named one of the best places to work. This attracts young talent and is a great place to work. Forbes also featured the company in its America’s Top Employer 2019.

2. Most Valuable Automotive Company: Despite these issues, Tesla’s Q2 2020 sales grew to 90,650 vehicles. This increase in deliveries drove the company’s market capitalization up to almost $208 billion. It also surpassed Toyota’s $202 market cap to become the most valuable automaker according to market value. 

3. The Best Electric Cars in Their Class: Tesla is the best electric car brand. Tesla’s electric cars are the most reliable in covering the maximum distances when compared to their range. According to a recent comparison, Tesla is the most reliable in terms of range. The Tesla Model S is the most versatile, able to travel up to 600 km with a single charge. Opel Ampera is closest with a range that extends to 520 km.

4. Tesla dominates U.S. Electric Vehicle Sales: According to Statista, Tesla delivered 80,050 Model 3 units and Model Y units were delivered in Q2 2020, with a total 90,650 cars being delivered. Because of its extraordinary performance in Q1 2020 and Q2 2020 Tesla is now being called one of the “New Big Three”, along with Ford, GM. With 187,971 sold Tesla Model S electric vehicles in 2019, it was the most popular vehicle in America.

5. Cross-sell and diversification: In partnership with Liberty Mutual, Tesla launched a comprehensive vehicle insurance program called InsureMyTesla.

6. Innovative Company: Tesla is known for its high innovation rate (not to mention the new developments in the world’s first fully-electric semi truck and sports car).The market trusts Tesla and expects them to create profitable and competitive products that will lead to significant financial gains.

7. Better Positioned: Experts believe that Tesla is in a better position than other US automakers to weather economic uncertainty. One, Tesla’s revenue increased during the first two quarters 2020. It is now expected to produce more than 500,000 cars by 2020. This is more than the 400,000 vehicles it produced in 2019.

8. Unconventional, but effective strategies: After the leak of its employee handbook, Tesla’s innovative but highly effective management strategy was revealed to the public. It revealed the secrets to its success. Tesla’s handbook, just like its founder, is direct, no-nonsense and straight to the point. The company employs the most creative and innovative people and sets clear and concise goals.

Tesla Weaknesses – Tesla SWOT Analysis 

1. Manufacturing complications: Higher standards of innovation will result in more production risks and mechanical complications. While launching new products, Tesla is facing continuous manufacturing and launch delays. Tesla, for example, faced numerous manufacturing problems when it was about to launch Model X. This led to continuous delays in distribution. The company also experienced extreme difficulties while producing Model X’s battery assembly line at Gigafactory.

2. Brand value could be affected if it is not possible to meet demand: Tesla might find it difficult to meet its production requirements due to their complex and highly experimental procedures. Tesla delivered 91,650 cars during the second quarter 2020. This is 4.8% less than the previous quarter of 2019.

3. Low volume production: Tesla is without doubt the leader in energy-saving automobiles. It has not been able to produce large volumes of automobiles for any model. The company is planning to produce Model 3 vehicles in high volumes, but it has problems with production costs, management resources, and expansion of Gigafactory.

4. Stock shortage of batteries: Elon Musk, the CEO, admitted that the production rate of their batteries has declined during the annual shareholder meetings. This shortage directly affected sales of electric cars and energy storage systems. Elon Musk, the CEO, admitted that the production rate of their batteries has declined during the annual shareholder meetings. This shortage directly affected sales of electric cars and energy storage systems.

5. Elon Musk is Tesla’s sole representative: Tesla admits that the company can only be described as a “one-man show”. Unfortunately, Elon Musk, the man responsible for the company’s success, has a lot to do to give 100 percent. Musk is also involved in many other projects, such as the Space Exploration Technologies Corporation or The Boring Company.

6. Situation Financially Poor: Companies can compete more effectively for market share because they have a lot of financial resources. Tesla’s financial position is poor and it has not posted an annual profit. 

7. Safety concerns for employees: Tesla was recently penalized for setting up a tent production plant without safety inspection or a permit. The company also failed to train employees about the dangers of working in the tent during the scorching California heat. Some employees may have had breathing problems due to the high temperatures inside the tent. 

8. Leadership Wrangles: Conflict between the management and board of directors can lead to productivity loss and short-term failure. Tesla’s board has been involved in numerous power struggles. 

Tesla Opportunities – Tesla SWOT Analysis 

1. Untapped Markets: Sales growth: The company’s most important opportunity right now is in Asia, where there is little competition in the fields of automotive and renewable energy. Particularly in this situation, where Tesla needs to expand his global market to increase financial stability and strengthen its market presences.

2. A Less Expensive Car: Tesla’s high price is due to its unusual reliance on innovation. This requires maximum financial support in order to develop new technology. Tesla recently launched Model 3, a less expensive version of Model S that has less power and range. It is a great opportunity for Tesla to increase their audience.

3. In-house battery production: Tesla plans to manufacture its battery cell. This move could be a game changer as it will allow the company to increase its manufacturing speed and reduce its production costs. Panasonic is currently their main supplier of batteries.

4. Introduction of pick-up truck: According to National Automobile Dealer Association market data, pickup trucks account for 17.6% of US automotive market. This is a huge opportunity for growth in Electric Vehicle.

5. Tesla Market Confidence: After beating the predicted car deliveries, the stock market showed confidence in Tesla. The company delivered more than 20,000 vehicles, or 90,650 cars. In July 2020, Tesla shares rose nearly 9% due to the results.

6. Exploit Air-Taxi Market: By 2025, the demand for urban air-taxi services is expected to rise dramatically. Tesla is able to provide vertical takeoff and landing vehicles. A second largest shareholder has already invested millions into Lilium, an air taxi startup.

Tesla Threats – Tesla SWOT Analysis

1. Products Liability Claims: Despite Tesla’s high quality assurance and manufacturing standards, the auto industry is used to dealing with product liability claims that can be very costly. This could prove to be a financial disaster for the company. Many autopilot Tesla vehicles have been launched, but not all of them have been able to avoid an accident. Due to their defective technology, the company has been subject to lawsuits. Tesla could be facing greater financial losses if these liability claims continue.

2. There is a lot of competition: Tesla, Inc. is facing fierce competition from alternative fuel vehicles, (Hybrid, Plug in hybrid, fully electric vehicle) and self driving technology. There is fierce competition between many automotive brands, including Mercedes, BMW and Lexus, as well as those in the luxury segment, like Audi, Lexus, Lexus, Lexus, and Toyota. Many brands are not only launching or planning to launch their environment-friendly/ self-driving technology but also, they are offering them at a comparably lower price. This is a serious threat to Tesla, which thrives off its unique value in creating innovative cars that are expensive and difficult for many.

3. Product Defects: Tesla’s vehicles and other energy products are complex because of their innovative engineering. This has led to major flaws in many cases. These defective products can have flaws in design, manufacturing, or other features that could permanently damage the company’s image.

4. Long-term confidence: To maintain a company’s image and morale, it is vital to ensure long-term sustainability . Because of its instable manufacturing conditions, Tesla suffers from disbelief in the public, which can lead to a lack in business development.

5. Customer Adaptation: Acceptance is the cornerstone of any business. Companies can benefit from the new products if the public is willing to change. It can be slow and unforgiving, which creates new challenges for companies such as Tesla. Customers’ willingness to adopt electric cars is a key factor in the success of this organization.

6. Pedestrians Still Have Concerns About Self-Driving Vehicles: According to YouGov’s survey, Americans still feel unsafe walking around in self-driving cars. People over 55 years old are most afraid of being around self-driving cars.

7. Supply disruptions due to shortages: Due to rising prices, Tesla may experience major shortages of materials. Aluminum, steel, nickel, copper and cobalt are all used by the company. The company also uses lithium-ion cell from suppliers. These materials are subject to volatile prices which could have a significant impact on the company’s future production lines.

8. Lithium-ion Use is a High-Risk Activity: Tesla’s battery packs contain lithium-ion batteries. Our products are more vulnerable to the explosive and reactive element of lithium. Tesla was hit with prices when their cars caught on fire and emitted smoke. This has led to a significant devastation of the company.

9. Self-driving regulations are not in place: Tesla’s sale is affected by self-driving regulations in many areas, even the US, as there are no appropriate regulations for self driving in many countries. This confusing situation of legal complexity raises uncertainty about Tesla’s future self-driving projects.

10. Tesla’s Reputation Is Affected by Elon Musk’s Erratic Behavior: Tesla’s reputation rests on the pioneering personality of Elon Musk. However, Tesla’s reputation as an iconic, creative brand has been tarnished by his bizarre behavior and impulsive responses. His marijuana smoking incident was recently discussed on Joe Rogan’s podcast. This caused controversy because it was considered inappropriate. This unexplainable behavior by a visionary genius caused Tesla’s stock price to plummet 9%.

11. Economic Uncertainty: Although Tesla is more prepared to handle economic uncertainty than its competitors, the imminent recession remains a significant threat to the company. 

Tesla SWOT Analysis Template 

Tesla SWOT Analysis Template

This is the SWOT report that Tesla has done. Please let us know if you have additional suggestions to add.

Let us know What do you think? Did you find the article interesting?

Write about your experiences and thoughts in the comments below.