Understand your customers better. Chen, W. M., Kim, H., & Yamaguchi, H. (2014). The corporation’s management can expect better performance upon addressing the identified SWOT factors. The market cap of the industry, excluding Tesla, is down 17%. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Also boosting Tesla's prospects is its international expansion. Before you dive into this post, take a look at our brand report on Tesla and its share of voice in the automotive industry. It got its production up and running in China, its gross margins increased even as the price of the Model 3 comes down, and it's about to launch a new truck. According to Tesla, it opens these stores in places “people regularly visit in a relatively open-minded buying mood.” However, limited global operations remain a weakness that, along with other issues identified in this SWOT analysis, Tesla must address to maintain international competitiveness and corresponding business growth. Tesla, Inc. has major opportunities to improve its financial standing and competitiveness in the global automotive and energy markets, as follows: In relation to its weaknesses, Tesla must consider the opportunity for global sales expansion. The article also covers top Tesla Motors competitors and includes Tesla Motors target market, segmentation, positioning & Unique Selling Proposition (USP). However, as identified in this SWOT analysis, there are various issues that the company must address to maintain its competitiveness and improve its profitability. Tesla’s corporate social responsibility efforts are satisfactory in addressing the interests of most of its stakeholders. Moving forward, Tesla plans to continue building on its first round of Tesla360 surveys. Returns as of 12/19/2020. Any snafus, like the ones that plagued the Model 3, could be its death knell. We try harder. Tesla has several big competitive advantages, imho. In this SWOT analysis, another opportunity is to expand Tesla’s supply chain to support the global expansion of production and sales operations. The average customer needs to look and feel his/her car in real life, test drive it, and then only come to a decision whether to buy it or not. However, some states like Virginia and Texas prohibits direct sales of the company’s products, requiring that such sales must go through dealerships. They likely invest significant money in their marketing strategy. This aspect of Tesla’s SWOT analysis points to the benefits of international expansion. SWOT analysis. It ended the third quarter with $5.3 billion in cash. Shares of Tesla (NASDAQ: TSLA) are up sharply again on Thursday, extending a bullish run for the stock this week. This article may not be reproduced, distributed, or mirrored without written permission from Panmore Institute and its author/s. This SWOT analysis shows that the company has the strengths needed to maintain profitability in the long term. (2006). Tesla's stock fell more than 3 percent Monday after news broke that the electric car maker had asked suppliers to return some of its payments. The table leads to a straightforward question. For example, the company can increase its revenues through expansion in Asian automotive and renewable energy markets. Copyright by Panmore Institute - All rights reserved. Positioning statement TESLA is the only STYLISH CAR that can go FROM 0 TO 100 in 3 SECONDS without A DROP OF OIL 20. Tesla, Inc. has the strengths to remain successful in the business in the years to come. Apart from that the brand also installs, operates and maintains solar and energy storage products. This isn't an approach that necessarily works for everyone, but when you've built a hype machine as Tesla has done, the rules of social media start to change. Continue or increase investments for product innovation. Investing in Tesla requires resolve given the volatile nature of its performance and its stock price. On the face of it, this should make … The latter is expected to drive much of the demand for Tesla in the near term. Factors in SWOT analysis applied to micro, small-to-medium, and large software enterprises: An Austrian study. Legendary short-seller Jim Chanos told Bloomberg he's reduced the size of his Tesla short, adding that his position has been "painful," for the last 12 months. Also, the company must continue its significant investments in research and development (R&D) to produce technologically advanced products that are competitive. Despite its strong brand as a manufacturer of electric vehicles, Tesla, Inc.’s performance and potential future growth suffer from the following major weaknesses: Tesla suffers from limited market presence. The Model X is also a strong indicator of whether Tesla can follow-up on its initial success, or if it just got lucky with the right product at the right time. Since its launch in September, it's been used more than one million times. Marketing Mix of Tesla analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and explains the Tesla marketing strategy. Tesla has 17 stores worldwide to sell its cars. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. A memorable example is Avis Rental Cars’ We’re #2. These external factors are threats that prevent the company from maximizing the benefits of its strengths and opportunities. Stock Advisor launched in February of 2002. It goes without saying, but Tesla won’t be where it is today without its … The sales growth was above Tesla Inc 's competitors average revenue growth of 7.7 %, recorded in the same quarter. Tesla has the first-mover advantage as well, but that doesn't mean its leadership won't be tested. For example, the company generates most of its revenues in the United States and has a small presence in China and the developing world. Heads up. 2 The Company Tesla Motors Tesla Motors (Tesla) is a global enterprise designing, producing and marketing electric powered vehicles and its components e.g. Also boosting Tesla's prospects is its international expansion. In Tesla’s case, this involves building out a network of superchargers, battery swap stations, and service stations. Tesla (TSLA) is seen as being able to “maintain a strong market position” by Goldman Sachs who upgrades the company in a new coverage update. It has a huge following of supporters and an equal amount of critics. The Surprisingly Good Reason Why Tesla Should Acquire Ford, Report: Construction on Tesla Berlin Gigafactory Again Halted Over Non-Payment, Wall Street Braces for the Impact of Tesla's Big Day on Monday, Stock Markets Fall as Tesla Prepares to Join S&P 500; Share Move Hits Virgin Galactic, Copyright, Trademark and Patent Information. A lot of vehicle manufacturers, including Ford (NYSE:F) and BMW, are getting into the market. Tesla has saturated the markets where it can legally sell cars. For example, expansion in foreign markets increases the company’s revenues and stability. The external factors that limit or reduce Tesla’s organizational performance are covered in this aspect of the SWOT Analysis. The last thing Tesla needs is to burn through cash trying to fix production problems. Tesla (TSLA) is seen as being able to “maintain a strong market position” by Goldman Sachs who upgrades the company in a new coverage update. To grow its market share and financial stability, Tesla needs to take vigorous actions. Also, Tesla actively engages its CEOs in the marketing of the company. This external strategic factor threatens Tesla, considering current efforts of other firms in producing electric vehicles. Pricing is expected to be around $49,000, undercutting its rival Rivian, which is rolling out two electric trucks starting at $61,000. Tesla's Marketing Strategy on Social - The "Apple" Approach. See you at the top! In this way, you can explore different topics in-depth and get feedback from the participants. Jackson, S. E., Joshi, A., & Erhardt, N. L. (2003). When Tesla's stock wobbles, as in the drop … Diversify the supply chain to reduce supply-side risks. Overall, this aspect of the SWOT analysis of Tesla points to innovation and brand image as major strengths of the company. Tesla has 17 stores worldwide to sell its cars. Musk has been teasing the truck for months now but is keeping the look under wraps for maximum impact. @themotleyfool #stocks $TSLA $F. This SWOT analysis also determines that the company’s limited supply chain is a related weakness that prevents the company from rapidly expanding in such markets. This internal strategic factor is a weakness that limits business growth based on the rapid economic development of overseas markets. Predicting the future for any company is never an exact science, but when it comes to Tesla (NASDAQ:TSLA) it's almost an exercise in futility. Yet, Tesla name recognition is very high. He described it as something out of Blade Runner. Taking the whole premium segment into account, premium cars contribute around 10% of the unit sales volume but 20% of the revenues and nearly half … REDSTAR Project Next step in Tesla’s marketing strategy Red Star Project TESLA’S MODEL 3 LAUNCH IN RUSSIA 2. However, the company can improve its CSR programs to improve its performance in supporting communities and investors/shareholders. The internal factors that limit organizational performance are identified in this aspect of the SWOT Analysis. All cars are available on the Tesla website, and its marketing was conceived to be entirely online. While the electric vehicle market is tiny today, it's expected to explode in the coming years. See our Privacy Policy page to find out more about cookies or to switch them off. I think the OP fails to appreciate the elegance of Tesla’s current marketing strategy. Tesla’s Model S is expensive (it ranges from $70,000 to over $100,000), but its range is 265 miles, more than triple that of Nissan’s Leaf (75 miles). Tesla has literally changed the way we buy cars. The purpose of this document is to analyse the strategic marketing positioning of Tesla Motors with the focus on its premium electric car, “Model S”. Before you dive into this post, take a look at our brand report on Tesla and its share of voice in the automotive industry. The company is active on social media, specifically on Twitter and the company blog. Such a strong brand optimizes the company’s ability to attract and retain new customers. Tesla is the maker of high performance and fully electric vehicles and energy storage systems. Selling its cars in as many countries as possible is critical to the company's future success. At the same time, Tesla uses unconventional marketing to promote its products. GM beat Tesla to the punch by releasing its mass-market EV, the Chevy Bolt, months before the Model 3. It needs to increase market share in the 20 states that have banned or limited how many stores it can have. It already has manufacturing facilities in the U.S. and Shanghai. Here are four marketing lessons that can help any business wanting some of Tesla’s magic to work for them. Let's conquer your financial goals together...faster. Positioning statement For DRIVERS WHO ARE KEEN ON INNOVATION, TECHNOLOGIES, COMFORT and WANT TO BE AHEAD OF THE CROUD; TESLA is the only PREMIUM CAR that goes FROM 0 TO 100 in 3 SECONDS and can reach 260 KM/H WITHOUT ANY … But Tesla has to execute on the manufacturing front to make this all possible. Also boosting Tesla's prospects is its international expansion. But Tesla struggles to meet deadlines and frequently delivers flawed vehicles, and profitability remains elusive. As cars become more tech-savvy, Tesla is in the lead. Renewable energy in eastern Asia: Renewable energy policy review and comparative SWOT analysis for promoting renewable energy in Japan, South Korea, and Taiwan. You'll also get to see how great your reports can look with our example social media report template. 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