Tesla Motors

Tesla Corporation

Tesla Corporation is an American company that designs, manufacture and sells electric
powertrains, electric cars, and battery products. The company first gained global attention
following its production of the tesla Roadtester a fully electric sports car (Hitt, Ireland &
Hoskisson, 2015). The company has sold over 140,000 electric cars worldwide with Norway
being its most preferred market due to its environmental friendly approach.
External Analysis of the Product
Technological Force
The current dynamism in technology is the main factor that led the company to develop
the first fully electric car in the world. The tesla car components come from various companies
and it is assembled at tesla Motors, Inc. base. For example, the brakes come from a company
known as Brembo in Italy while the electric power steering is imported from Germany. The
power seat recliner is sourced from a company in the United States known as Fisher dynamics.
The company first started producing the vehicle on a large scale in the year 2008. The
first car used lithium-ion battery cells. The model that brought the company worldwide attention
is the Tesla Model S which is an all-electric sedan and was produced in 2009 making its first
delivery in 2012 (Hitt, Ireland & Hoskisson, 2015). The electric car is charged from in a
recharging station which tesla has gone forward to install in some areas around the world mostly
in places where the cars are common.
The company has marketed its product to the affluent in the society. This is their
marketing strategy which has so far worked for them. Lately, the company has developed a

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strategy where it is targeting every person through its lower priced vehicles. Additionally, the
company has started to invest in charging infrastructure to boost its image in the market.
Competitive Force
General Motors has developed to become one of the competitive companies. The
company first started to push the idea of an electric car in 2007 where it managed to develop the
Chevrolet Volt. This car was a plug-in hybrid sedan. General motors also developed the Chevy
Bolt EV which is generally thought as the real competitor for the Model S. Currently, BMW has
become the most potent competitor of Tesla with its BMW 3 series (Lambert, 2016). This is a
sports luxury vehicle that uses electricity and provides more millage than Tesla’s model S.
Hybrid cars are the ones which provide the most competition due to the inadequate charging
infrastructure in many parts of the world.
Regulatory Force
So far, there are few regulatory forces that have hindered the development of the electric
car. Its clean energy is one of the factors that have endeared it to most organizations and non-
governmental organizations. The company was also the pioneer of electric cars which gives it an
edge when it comes to drafting of regulations in this field of vehicle production.
Internal Analysis of the Product
Product Strength
The strength of Tesla electric car is its environment friendly approach. Currently, the
biggest issue internationally is global warming. Global warming has led to many problems such
as the receding ice caps and rising ocean level. Smoke from vehicles is attributed as the leading

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contributing factor, Tesla provides an alternative and it is the best approach for a healthy
environment. Additionally, Tesla is the most developed company in this area of vehicle
production.
Product Weakness
The main weakness of the Tesla electric car is the charging infrastructure worldwide.
Currently, the battery can only last fro up to 200 miles. This is a big problem for people
travelling long distance. As such, motor vehicles still continue being the preferred choice due to
its flexibility and wide use.
Summary
One of the upcoming major issues the company has to deal with is the level of
competition that is rising each year. With the introduction of the BMW 3 series, this field will
become more competitive. It is a matter of time before other companies decide to build their
electric cars as well. Additionally, the batteries need to be further improved so that it can allow
the vehicle to travel long distance without it being depleted.

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References

Lambert, F. (2016). Tesla Model 3 to have a real competitor in upcoming all-electric BMW 3
Series. Electrek. Retrieved 1 October 2016, from https://electrek.co/2016/07/13/tesla-
model-3-all-electric-2018-bmw-3-series/
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2015). Strategic management: Competitiveness
& globalization : concepts & cases. Stamford, Conn: Cengage Learning.

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