What is Tesla SWOT analysis?
The Tesla SWOT analysis is the crucial tool that enable the company to dig into its programs and reports in order to come up with effective and reliable company routine management. Tesla is a company well known for producing green energy equipment and machines like electric cars, e.t.c that entirely uses solar energy as the driving mechanism. Tesla is not limited to electric cars but they have also diversified into scalable clean energy generation and storage.
Using the formula of SWOT analysis (Strengths, Weaknesses, Opportunity, and Threats) Tesla SWOT analysis can be summarized as shown below
General Tesla’ Strengths
1. Market Dominance: Tesla being the leader and largest electric auto manufacturer in one of the largest auto market is a major strength
2. Highly Innovative: From electric cars to design and manufacture of combustion engines,
3. Strong Strategic Partnerships: Tesla is partnering with the New Caledonia nickel mine as a technical advisor as a way to secure stocks of nickel, Mining Global, and many more, strong partners have contributed to its success.
4. Safest Cars: Consumers consider safety as the main factors that influence their purchase decision. Tesla brands which include the Model S, Model 3, Model X, and Model Y are the safest cars in the market and it is the only carmaker to receive a five-star safety.
5. Global Presence: operates globally across 6 continents under America, China, and International that caters to Europe, Middle East, Africa, and Latin America.
6. Unique Brand Portfolio: Tesla has some of the unique brands under it like a rechargeable battery for electric cars, power max, and e.t.c.
7. Excellent Sales Strategy: The higher the sales, the higher the revenues and profits.
1. Over dependence on U.S. Market: Even though Tesla operates globally, the company relies heavily on the US market than any other carmaker. a decrease in sales in the US market can be catastrophic to the bottom line.
2. Lack of Diversification: operates primarily in the design and manufacture of automobiles. With all its investments in one sector, a decline in the auto industry will be more damaging to GM than other automakers with diversified portfolios.
1. Focus on Eco-friendly Options: The number of Eco-conscious consumers is increasing globally along with the demand for Eco-friendly cars.
2. Strengthen Presence in Emerging Markets: it has a very small presence and market share. It focuses on strengthening its presence to offer higher growth potential.
3. Exploit Autonomous Market: Demand for self-driving cars is poised to increase in the coming years.
4. Diversify Portfolio: From flexible mobility like car share to the increasing demand for electric bikes, there are several related sectors that GM can engage in to diversify its portfolio
1. Global Recession: The pandemic has devastated economies and wiped off millions of jobs with many countries sliding deeper into recession.
2. Trade Tensions: With the trade tension between the US and China still unresolved, GM can become a victim of tit-for-tat tariffs. This is a major threat to Tesla since it has several auto plants in China and depends on the US market.
3. Intense Competition: From relentless Toyota to giant Volkswagen, respected Mercedes, luxurious BMW.
4. Auto Market Slowdown: Regardless of the industry, the profits and existence of all companies in that industry would be threatened in the event of a slowdown of the market. GM’s revenue is declining due to the slowdown of the global auto market.
5. Stringent Regulations: To counter the ever-increasing threat posed by climate change, countries are imposing stringent emission regulations. References