TESLA

History
Contrary to popular belief, Tesla was not an overnight success. The company was founded
in 2003 by two Silicon Valley engineers Martin Eberhard and Marc Tarpenning, who wanted
to prove that "electric vehicles can be better, quicker, and more fun to drive than gasoline
cars.”
Tesla Motors was named after alternating current inventor Nikola Tesla.
In 2004, the company’s co-founders went through initial rounds of investing with venture
capital firms. Musk led the initial round of funding and soon joined as the head of the board of
directors.

In 2008, Musk became the company’s CEO and product architect, positions he still holds as of
March 2022. That same year, Tesla released its first automobile, the Roadster sports car. "It is not
just a car, but one of the strongest automotive statements on the road,”

TESLA TODAY
Tesla, as part of its secret to success, continues to focus on creating electric cars and making
electric vehicle (EV) powertrain systems and components. As of 2021, the company has a network
of 438 stores and galleries, 100 service centers, and more than 30,000 Superchargers (charging
portals) in over 3,100 locations.

To move with the changing times, Tesla focuses on launching new offerings that target a wider
range of consumers. To stay competitive in the niche market, Tesla Motors has expanded its
operations globally with locations in the U.S. and China.

To keep costs down on lithium-ion battery packs, Tesla and key strategic partners, including
Panasonic, built a gigafactory in Nevada that produces the Model 3, battery packs, and energy
storage products.

Model X $99,000 ( 10,000 units)

Model S $90,000 ( 10,000 units)
Model Y $55,000
Model 3 $42,000 ( 90,000 units)
GPM 30%
https://panmore.com/tesla-motors-inc-marketing-mix-4ps-analysis

Product Mix (Sources of Revenue)

1) Automotive
2) Sale of regulatory credits
3) Servicing
4) Energy Business

Place/Distribution in Tesla’s Marketing Mix

1. Company-owned Stores and Galleries

2. Official Company Website
3. Company-owned Service Centers
4. Charging stations

Tesla, Inc.’s Promotion (Promotional Mix)

1. Viral marketing (most significant)

2. Personal selling
3. Public relations
4. Sales promotions
5. Direct marketing

Tesla’s Prices and Pricing Strategy

1. Premium pricing strategy

2. Market-oriented pricing
TESLA SWOT ANALYSIS
https://bstrategyhub.com/tesla-swot-analysis/

STRENGTHS

1) A Top Employer Company

2) Most Valuable Automotive Company.
3) Best-in-class Electric Car
4) Tesla Doubles it's Electric Vehicle Delivery
5) Cross-sell and Diversification
6) Innovative Company
7) Better Positioned
8) Unconventional but Effective Strategies

WEAKNESS

1. Manufacturing Complications
2. Unable to meet demand might affect brand value
3. Lack of High Volume Production
4. Shortage of Batteries
5. Elon Musk as Tesla’s Sole Representative
6. Financial Uncertainty
7. Employee Safety Concerns
8. 8. Leadership Wrangles

OPPORTUNITIES

1. Sales expansion in untapped Marke

2. Less Expensive Car

3. Bringing battery production technology in-house

4. Introduction of pick up truck

5. Market Confidence in Tesla

6. Exploit Air-Taxi Market

7. Hertz Books Order for 100,000 Tesla Cars

THREATS

1. Product Liability Claims

2. Extensive Competition

3. Product Defects

4. Long term confidence

5. Custumer Adaptation

6. Self-Driving Cars Are Still a Concern for Pedestrians

7. Disruption of Supply Due to Shortage of Materials

8. High-Risk Factor Due to Usage of Lithium-ion

9. Lack of Regulations for Self Driving

10. Elon Musk’s Erratic Behavior Affecting Tesla’s Reputation

TESLA’s PESTEL MODEL

https://pestleanalysis.com/pestle-analysis-of-tesla/
https://panmore.com/tesla-motors-inc-pestel-pestle-analysis-recommendations

Political Factor
1. Governmental incentives for electric automobiles (opportunity)
2. New global trade agreements (opportunity)
3. Political stability in the majority of major markets (opportunity)

Economic Factor
1. Decreasing battery costs (opportunity)
2. Decreasing renewable energy costs (opportunity)
3. Economic stability issues (threat)

Social Environment Factor

1. Increasingly popularity of low-carbon lifestyles (opportunity)
2. Increasing preference for renewable energy (opportunity)
3. Improving wealth distribution in developing markets (opportunity)

Technological Factor
1. High rate of technological change (opportunity & threat)
2. Increasing automation in business (opportunity)
3. Increasing popularity of online mobile systems (opportunity)

Ecological Factor
1. Climate change (opportunity)
2. Expanding environmental programs (opportunity)
3. Rising standards on waste disposal (opportunity)

Legal Factors
1. Expanding international patent protection (opportunity)
2. Energy consumption regulations (opportunity)
3. Dealership sales regulation in the United States (opportunity & threat)