Tesla Swot Analysis

SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats)

Tesla’s corporate strategies focuses on making electric vehicles more accessible and therefore, achieve higher market shares; this is the reason why the company launched the Tesla Model X. Production of the Tesla X began late 2014 to meet the high demand for this SUV. Initially Tesla thought they would produce 1,000 units a week for 2016. Unfortunately, the company has failed to meet the market demand and has only delivered 206 models by the fourth quarter of 2015. CEO, Elon Musk claims to have slowed down production to maintain “quality production standards.” (Fehrenbacher) The starting price for the new model is $80,000 USD.- (Groden)The electric vehicle is still in its launch phase, so the products it sells  are early in their life cycle. Additionally, Tesla serves no extra cost to its customers through the deployment of a free of charge network of electric chargers in America, Europe and Asia to facilitate long-distance travel and solve one of the drawbacks of electric vehicles, their autonomy. (Motley Fool).  Moreover the company has introduced a model of direct distribution from manufacturer to consumer, primarily selling through internet and telephone, and is currently deploying its own sales, with a clear focus on marketing; that is, it seeks to create long-term customers, serving the stores to provide information and answer questions, not looking close the sale at the time, but to create loyal customers who buy the vehicle because they are informed about the product they will buy. As a newly established company has been able to adopt this system as a method of distribution. As a result you can get a higher profit margin, unlike traditional manufacturers, which have commitments with dealers and other agents have been responsible for product distribution and who would incur a high cost to move to a direct sales channel .  (Musk) The Tesla Model X competes in a relatively new field in which most vehicle manufacturing has wanted incorporated into the market by developing their own versions of electric cars.  

Strengths:  A pioneer in the development of the electric vehicle.  It has the largest network charging stations.  The company has superior technology in pure electric vehicles. Besides, their own manufacturing and distribution network.  Furthermore, price is below alternatives in terms of power capacity trunk and consumption.  

Weaknesses : High price for the lack of demand electric vehicles.  Slight market share and brand recognition.  Small segment to be addressed.  Consumers might see the need to adapt their home to charge their car an inconvenience and undesirable long delivery time vehicle. (Musk, Tesla)

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