Tesla, Inc. is an electric automobile company based in the USA, named after Nikola Tesla the most famous inventor of all time as an Honour, Founded by Marc Tarpenning, Martin Eberhard, Ian Wright, JB Straubel in 2003. Let us see the overview of Tesla before starting with the SWOT Analysis of Tesla
|Headquarters||Palo Alto, California, USA|
|Founders||Marc Tarpenning, Martin Eberhard, Ian Wright, JB Strauben|
Overview Of Tesla and Its Development Timeline
Tesla, Inc. is an electric car and cleans energy company based in Palo Alto, California, USA, which produces electric cars, solar panels, solar roof tiles, home solar, and other products.
Tesla has over 23% market share in electric cars and 16% plug-in; Tesla Energy is the major installer of photovoltaic cells ( solar panels ) across the US.
Tesla is currently the major producer of electric cars by defeating other major brands like BMW, Audi, Hyundai, Etc, and a major supplier of battery energy storage systems in 2020.
|No: Of Employees||70,700|
|Annual Revenue||$35.940 Billion ( FY21 )|
|Net Profit||$1.112 Billion ( FY21 )|
|Competitors||Kia, Volkswagen, Audi, Hyundai, BMW and Etc.|
Did You Know?
Tesla. Elon Musk does not found inc; it was founded by Marc Tarpenning in 2003 later. Elon musk entered the company by investing over $5 million, which he got by selling PayPal. But later, marc tarpenning left the company due to internal issues, and then Elon Musk became the CEO in 2008.
Development Timeline of Tesla Inc
2003: Tesla was founded by Martin Eberhard and Marc Tarpenning.
2006: Tesla made a deal with Toyota. Both companies joined hands to source drivetrains from the RAV4 EV crossover SUV.
2008: Elon Musk Became the CEO Of Tesla and launched the Tesla roadster, which revolutionized the automobile industry.
2012: The Model S launched into the market being the first Sedan clean sheet-designed vehicle to prove they can also create luxury electric cars.
2015: Tesla has begun its operations on self-driving cars. Tesla tested its semi self-driving vehicles.
2017: In a concert like-reveal, Tesla’s CEO Elon Musk launched Tesla Semi and the New Roadster. The New Roadster became the fastest production car worldwide.
2019: The launch of Model Y, a compact crossover, and The Cybertruck, Tesla’s energy-saving version of a pickup truck.
2020: Tesla became the most valuable automotive company in the world by surpassing its competitors.
SWOT Analysis Of Tesla
SWOT Analysis of Tesla discusses the company’s strengths, weaknesses, figuring out how the company is planning to expand its businesses, growth strategies which we call opportunities and threats. As one of the largest electric car producers in the world, it has several strengths, weaknesses, opportunities, and threats.
S Stands For Strengths
1. Energy Star: Tesla only produces electric cars and uses only renewable energy for its operations, which revolutionized most people worldwide to use electric cars, which helps nature to revive instead of diesel and petrol cars, which harm.
2. Credible Employees: a say is there ” your attitude is known by knowing your competitor ” likewise a company is innovative and successful not because of its name but because of its employees. Tesla has the best employees in the world, also tesla ranked in the top 250 lists of Forbes best employees.
3. Best in Class Electic Cars: Tesla has produced the most innovative and best quality cars. A recent study shows that Tesla ranked in the top three in terms of traveling range. The Tesla Model S will get you the furthest – traveling up to 600 kilometers on a single charge. The nearest another brand has got is the Opel Ampera, with a range of 520 kilometers.
Tesla also engineered and designed the most comfortable cars, which gives extreme comfort to its customers.
4. Brand Image: Tesla has gained a huge trust from customers due to quality products and their efforts to develop clean energy.
W Stands For Weakness
Even though tesla has many strengths, it also has some weaknesses.
1. Limited Area Served: Tesla is the most famous clean energy brand in the world but in terms of fame, not by-products because it only serves in limited areas, and it is only most used in the American market it is where it matured more than in other markets like Europe and Asia it is just budding over there.
2. Manufacturing: Tesla’s production rate is less compared to its competitors Toyota, Volkswagen, and its production rate declined 31% in 2019 than in 2018.
3. Premium Products Only: Tesla has established a premium car brand like Apple in mobile phones, which many cannot afford. Tesla needs to launch affordable products to gather interest among all-level customers.
4. Succession Strategy: most people think Elon musk is the only man who works for tesla at a high level. This needs to change. It is more like a one-man show because nobody is permanent in the world. Tesla needs to focus on other executives instead of focusing only on Elon Musk.
O Stands For Opportunities
1. Battery Production: Tesla can produce their own battery instead of outsourcing them because it can affect its production rate. It can also reduce its production cost by at least 5% to 10%.
2. Long Term: Tesla is the first car brand globally, which started as a 100% electric car brand and gained more popularity.
Tesla has a great opportunity in the long term as more people are liked to move to electric cars instead of diesel or petrol cars due to clean energy, which helps to reduce the carbon rate in the earth.
Nowadays, more central and state-level governments are announcing more incentives for electric car buyers like lesser tax-free purchases, road tax-free, etc., which encourages more people to buy electric cars.
T Stands For Threats
1. Competition: For the last few years, big brands like BMW, Volkswagen, Audi, Tata Motors are entering the electric car segment.
Those big brands already have a huge production capacity and more loyal customers, which is easy for them to tap into the market without much stress like tesla.
Even Google, Apple, Xiaomi are Rumored to enter electric and self-driving cars soon.
2. Product Defects: Tesla is an electric car that is good for the earth, but sometimes it’s a bad time for its customers due to battery explosion and self-driving error.
some of its customers have reported a battery explosion, battery smoke, etc., and also some reported self-driving errors which lead to accidents
Tesla SWOT Analysis Key Takeaways:
The SWOT analysis of Tesla highlights where the brand currently stands and its threats in this era. Following are a few suggestions for Tesla that were recommended after this detailed analysis:
- Tesla needs to focus on increasing its market share in Asia, Europe, and Oceania countries.
- It needs to produce affordable cars to attract all levels of customers to the ecosystem.
- Tesla also needs to invent new battery technology which is safer because Lithium-Ion battery is more prone to explosion.