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TitleA Case Study of Tesla Motors
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Page 7

Running head: TESLA MOTORS INC.
7

Tesla is not a car company it’s a technology company.

STRENGTHS

 High demand for Tesla Cars.
 Niche market where it is only firm.
 Good Public Relations.
 Excellent Futuristic vehicle design
 Only all electric vehicles.
 Luxurious and high performance cars.
 Outsourcing of secondary components

helps them to focus more on technology
(Welch, 2015).

 Strong R&D department.
 Successful Strategic partnerships with

companies like Google, Daimler and
Toyota.

 No dealership commissions so increased
sale efficiency.

 Share value and Stock value are
increasing every year.

 Elon Musk CEO of Tesla Motors is a
great strength to the company.

 Unique and innovative products.
 Brand Loyalty.
 Tesla Model S has the highest distance

range of 300 miles.

WEAKNESS

 Lack of liquid assets is the major
problem of Tesla motors, Tesla Reported
its 1st profit in 2013 that is 10 years from
its date of launch.

 Its vehicle offering ranges are not
feasible for mass market.

 Public have not yet adapted to Tesla
idea.

 Tesla motors are not serious contender
for majority of market share.

 High debt to equity ratio,4,9
(Wikipedia)

 Limited manufacturing capacity.
 Technology development is time

consuming

 Low brand awareness.
 Issues with resale value.
 Very low number of Tesla supercharger

stations.

 A thin line of difference in hybrid and
electric cars.

 Elon Musk is also the CEO of SPACE X
program, so his busy schedule may
affect company.

OPPORTUNITIES

 Should build-up Loyalty to dominate
competitors.

 With continuous increase in price of
petrol and concern about global warming
Tesla should generate demand for its
vehicles.

 Utilizing the funds from US government

THREATS

 Other auto companies have huge brand
awareness like BMW, Mercedes and Ford.

 Major threat for Tesla Motors is Hybrid cars
like Toyota Prius, Prius is the most sold car
in 2014 (academia,2015).

 Hydrogen powered vehicles may dominate
Tesla technology.

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