TESLA REPORT

STRATEGIC MANAGEMENT

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 1. STRATEGIC MANAGEMENT

Strategic administration is the perpetual orchestrating, monitoring,

evaluating and sizably distinction of all essentialities a corporation wishes to
meet its goals and objectives. Transmutations in business enterprise
environments will require firms to commonly take a gasconade up at their
techniques for prosperity. The strategic administration laptop computer
avails groups to take inventory of their present-day situation, trace out
plans, set up them and evaluate the efficacy of the utilized administration
strategies. The Strategic Command helps groups take inventory of their
present-day situation, trace strategies, set up them and examine the
efficacy of the utilized administration strategies.

2. TESLA’S INITIATION

Tesla is a leading electric vehicle and clean energy company founded in

2003 by a group of engineers in Silicon Valley, including Elon Musk. Tesla
aimed to change the automotive industry by producing electric cars with
exceptional performance. In addition to cars, Tesla also produces energy
storage systems, solar panels, and solar roofs.

Elon Musk, who also founded SpaceX and is involved in other ventures,
continues to lead Tesla as its CEO. Under his leadership, Tesla has
become a major player in the electric car market and clean energy industry.

As of March,2023 Tesla has a market cap of $557.98 Billion based majorly

on the US market
3. TESLA’S STRATEGY

Tesla's strategy is basically centered around innovation. It aims to bring

ground breaking technologies and products to market that will revolutionize
the transportation and energy industries. Tesla's business model involves
vertical integration, which means that it controls every aspect of the
production process, from design to manufacturing to sales. This allows the
company to have greater control over the quality of its products and to
respond quickly to changes in the market. Also, Tesla's sales strategy
involves selling directly to consumers rather than through traditional
dealership networks. This allows the company to maintain more control over
its pricing and distribution and to provide more personalized customer
experience.

4. Analyzing Tesla's Strategy using PESTLE Method

4.1 Political Factors

• Public-private partnerships

Tesla has formed partnerships with government agencies and

utilities to develop charging infrastructure and other initiatives that
support the adoption of electric vehicles. Tesla's public-private
partnerships have been very helpful in advancing the company's
goals of promoting sustainability and accelerating the adoption of
electric vehicles and renewable energy technologies. Tesla has
partnered with various public entities and businesses to build out its
Supercharger network, which provides fast charging for Tesla
vehicles. These partnerships have helped to expand the network
and make it more accessible to Tesla owners. Also,Tesla has
worked with government agencies and academic institutions to
develop its Autopilot technology, which is designed to assist drivers
and increase safety. These partnerships have helped to advance the
development of autonomous vehicle technology and improve road
safety.
• Lobbying
Tesla has been active in lobbying for policies and regulations that
support its goals like support the adoption of electric vehicles,
including tax credits, emissions standards, charging infrastructure,
renewable energy standards, and electric vehicle mandates.
Tesla has lobbied for the expansion of federal tax credits for
electric vehicles, which have helped to make its products more
affordable for consumers. It also lobbied for stricter emissions
standards for vehicles, which would help to level the playing field
for electric vehicles and reduce pollution and has supported
mandates for the adoption of electric vehicles by government
fleets and transportation companies, which would help to drive
demand for electric vehicles and reduce emissions.

• Government subsidies and incentives

Tesla has received substantial government subsidies and

incentives, both at the federal and state level, to support the
development and adoption of electric vehicles. According to data
from the Good Jobs First subsidy tracker, Tesla has received over
$2.4 billion in subsidies and incentives from various governments
in the United States since 2010, including $1.3 billion in tax
breaks and $660 million in grants and loans. The majority of these
subsidies and incentives have been targeted towards Tesla's
manufacturing and battery technology development, as well as
the deployment of charging infrastructure. Despite criticisms of
corporate welfare, these government incentives have helped
Tesla to lower the cost of its electric vehicles, increase production
capacity, and grow its market share in the industry. However,
these incentives are subject to political changes and could be
reduced or eliminated in the future, which could impact Tesla's
business strategy and financial performance.
4.2 Economic Factors

As the company operates in a rapidly growing market for electric

vehicles and renewable energy, Tesla is actively linked to various
economic factors. According to data from Statista, Tesla's global
revenue increased from $7 billion in 2016 to $31.5 billion in 2020,
reflecting a compound annual growth rate of over 50%. In addition, the
company's market capitalization has surged in recent years, reaching
over $800 billion in early 2021. This growth has been driven by factors
such as increased demand for electric vehicles, advancements in
battery technology, and expansion into new markets. However, Tesla's
economic success is also subject to risks, such as supply chain
disruptions, fluctuations in commodity prices, and competition from
established automakers and new entrants in the electric vehicle
market. Therefore, it is essential for Tesla to maintain a strong financial
position, invest in research and development, and continue to innovate
in order to stay ahead of the competition.

4.3 Social Factors

Social Factors affecting the growth of Tesla majorly consist of

consumer attitudes and behaviors, demographic trends, and cultural
norms. According to data from Statista, the global electric vehicle
market is projected to grow rapidly in the coming years, reaching over
30 million units by 2030. This growth is driven by factors such as
increased awareness of climate change, government incentives and
regulations, and improvements in battery technology. Tesla has been
successful in appealing to consumers who are interested in
sustainability and innovation, as well as those who value luxury and
performance. The company's Model S and Model X vehicles have
been particularly popular among affluent consumers in the United
States, while the Model 3 and Model Y have helped to expand Tesla's
market share globally.
4.4 Technological Factors

According to data from Statista, Tesla has been a leader in the global
electric vehicle market, with a market share of over 16% in 2020. This
success is driven by the company's ability to innovate in areas such as
battery technology, autonomous driving, and software development.
For example, Tesla's electric vehicles are known for their long-range
capabilities and fast charging speeds, while the company's Autopilot
software is among the most advanced autonomous driving systems
available. In addition, Tesla has been successful in leveraging
technology to optimize its supply chain, reduce costs, and improve
efficiency. However, there are always some risks involved like
cybersecurity threats, product defects, and potential disruptions in the
supply of critical components.

4.5 Environmental Factors

According to data from the International Energy Agency, the

transportation sector is responsible for approximately one-quarter of
global CO2 emissions, making it a significant contributor to climate
change. Tesla has been successful in promoting the adoption of
electric vehicles as a cleaner alternative to gasoline-powered cars, with
its vehicles emitting zero emissions and running entirely on electricity.
In addition, Tesla has been a leader in developing renewable energy
technologies, including solar panels and battery storage systems.
According to data from the company's sustainability report, Tesla's
products have helped to avoid over 11 million metric tons of CO2
emissions since 2012.
4.6 Legal Factors

Tesla operates in USA which is a heavily regulated industry that is

subject to various laws and regulations. According to data from the US
National Highway Traffic Safety Administration, Tesla has been subject
to several investigations and recalls related to vehicle safety issues,
including incidents involving Autopilot crashes and battery fires. In
addition, Tesla has been involved in legal disputes with government
agencies and other companies, such as a recent lawsuit over the
acquisition of SolarCity. The outcome of these legal battles could have
significant implications for Tesla's business operations and financial
performance. Furthermore, changes in government policies and
regulations, such as emissions standards and trade policies, could also
impact Tesla's ability to operate in certain markets or access key
resources. Therefore, it is essential for Tesla to maintain a strong focus
on regulatory compliance, risk management, and legal expertise to
navigate these challenges effectively.

5. CONCLUSION

This report was based on PESTEL analysis of Tesla, which highlights

the various external factors that impact the company's business
operations and performance. The analysis shows that Tesla operates
in a market that is heavily influenced by political, economic, social,
technological, environmental, and legal factors. While these factors
present both opportunities and challenges for the company, Tesla has
been successful in leveraging its strengths in innovation, sustainability,
and customer appeal to build a strong brand and capture a significant
market share in the global electric vehicle market. However, the
analysis also underscores the risks and uncertainties that Tesla faces,
such as regulatory changes, competition, and potential disruptions in
the supply chain. Therefore, it is essential for Tesla to continue to
invest in research and development, risk management, and strategic
partnerships to maintain its competitive position and achieve long-term
success in the rapidly evolving automotive and renewable energy
industries.
6. REFERENCES

US National Highway Traffic Safety Administration

(https://www.nhtsa.gov/vehicle/2022/TESLA/MODEL%2525203/4%252
520DR/RWD)

International Energy Agency

(https://www.iea.org/reports/electric-vehicles)

Statista
(https://www.statista.com/topics/2086/tesla/)

Good Jobs First subsidy tracker

(https://subsidytracker.goodjobsfirst.org/parent/tesla-inc)