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Tesla Motors’ Strategic Management and SWOT Analysis Essay

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Updated: Jul 21st, 2021


Tesla Motors is a unique company, which focuses on electric car manufacturing (“Tesla’s Mission” par. 1). The main goal of the company is to provide evidence to the world that electric cars can be more efficient than normal gasoline vehicles (“Tesla’s Mission” par. 1). An interesting fact is that the company is named after a famous inventor, Nikola Tesla (“Tesla’s Mission” par. 2). Nikola Tesla was a well-known scientist, who could be called a father of the “electrical age” (Syon 347). He is not only famous for his contribution to the applied sciences but also by his charismatic personality and ‘magic powers.’ This person is truly inspiring, and it is not surprising that a company has chosen his name to represent an electric company.

This essay provides a SWOT analysis of Tesla Motors. It will encourage seeing its strengths, weaknesses, opportunities, and threats. Moreover, the analysis of its external and internal factors allows seeing the company’s position in the current market. Furthermore, the results will provide the company with recommendations for its future development.

SWOT Analysis

In order to determine a position and the company’s competitiveness on the market, a SWOT analysis is used. This analyzing tool is rather simple. However, it allows seeing a product from different perspectives and evaluating possible future steps (Hall 92).

Both internal and external environments are discovered with the help of a SWOT analysis (Hall 92). The strengths and weaknesses provide the internal exploration of the company’s assets and features, which differentiate the company from its competitors. In turn, the opportunities and threats focus on the external analysis (Hall 92). It could be said that a SWOT analysis is the most suitable tool to determine future steps of Tesla Motors. It evaluates important aspects of the internal and external environment.


As it was mentioned previously, strengths are referred to as the internal factors of the company. Firstly, one of the most important resources of any company is its employees. Like other companies, Tesla Motors tries to recruit only the best specialists, which are available on the labor market. It increases the company’s efficiency and competitiveness on the market. Consequently, one of the strengths of the company is know-how (Tilley par.1).

Another important strength is the fact that the company pays a significant amount of attention to the design of its cars. It could be said that Tesla Motors’ cars stand out from its competitors. It seems that cars can be possible future jets. Tesla Motors has a reputation for a highly advanced technological company, as it won several awards and prizes for design and innovation (McKenzie par. 1).

As for the cars, the vehicles are comfortable to use, as it is not necessary to go to a gas station in order to recharge them (“Tesla’s Mission” par. 6). Moreover, Tesla’s cars do not require gasoline (“Tesla’s Mission” par. 3). It could be said that it is the main benefit of the product. It saves money and reduces time since electric cars could be charged during the night.


Tesla Motors was founded in 2003 (“Tesla’s Mission” par. 1). Consequently, it was present in the car industry, not for a long time. It could be assumed that it might lack competence and experience in this sphere. This weakness could be considered as a benefit for the competitors.

One of the strongest weaknesses of the car is the fact that it might unexpectedly run out of charge (Mandel par. 4). This situation occurs due to the undeveloped infrastructure of the charging stations. An unplanned stop in the middle of the road might be a reason for the accident and injuries.

Another disadvantage of Tesla Motor is the fact that the car can be hacked. Two researchers have conducted an experiment. The results revealed that it was possible to start the car and even infect the system with a virus (Zetter par. 2). This fact might also lead to accidents due to a lack of control.


Today people are more concerned with the environment, as they were before. Tesla’s cars are perfect vehicles for environmentalists, as the cars do not pollute the surroundings (Tompson par.5). Moreover, Tesla Motors supports green policies and encourages people to be environmentally friendly. This fact can be considered as a chance for the company, as the trend might become widely known in the future. This tendency will help the company gain a bigger share of the market and become more popular among people around the world.

Tesla Motors has an opportunity for growth and development. It has established a partnership with several companies in order to reduce costs (“Tesla’s Mission” par. 7). The contracts with companies will help Tesla Motors become more productive on the market.


As the world and technology are continuously growing, it could be mentioned that the competition in the electric car industry also becomes more intense. Nissan, Renaults, and Carlos Ghosn started new product lines of hybrids and electric cars (Stenquist par. 3). It could be said that more and more companies consider electric cars as a future of the industry. This fact might be the most serious threat to the company, as it might lose its market share in the future.

Another threat is Tesla Motors’ price policy. The company states on its official website that “each new generation will be increasingly affordable” (“Tesla’s Mission” par.2). However, it could be said that Tesla’s cars could be considered expensive. Only a limited amount of people could afford to buy an electric car. Moreover, people might experience difficulties while driving it. The car might get hacked, and charging stations for this type of vehicle are not widely available.


As for recommendations, there are several suggestions. The proposed steps will help the company remain competitive on the market and gain a bigger market share. Firstly, it is important to fix all the errors, which might lead to a lack of control. It will help the company assure its users about its reliability. Secondly, it has to expand and develop the infrastructure of charging stations. This fact will keep the drivers safe. Thirdly, it has to continue its participation in various events and try to win as many awards as possible. It will help increase its reputation and gain the loyalty of the customers.

The next step is to pay close attention to the trends in the car industry. This fact will allow staying competitive and increasing effectiveness. Moreover, reevaluating the price policy is also vital, as a majority of potential customers might not be able to afford it. Tesla Motors might not need to reset the prices. However, it might be necessary to find a new market niche or a marketing strategy to reach the target audience.

Works Cited

Hall, Richard. Starting a Small Business, Haverford: Infinity Publishing, 2003. Print.

Mandel, Dutch. “The great Tesla bubble.” Automotive News. Web.

McKenzie, Angus. “2013 Motor Trend Car of the Year: Tesla Model S.” Motor Trend 2013. Web.

2015. Web.

Tilley, Parker. “Tesla Motors offers the epitome of automobile innovation.” The Dispatch . 2014.Web.

Stenquist, Paul. “Electric Vehicles Are Cleaner but Still Not a Magic Bullet.” The New York Times. 2014. Web.

Syon, Guillaume. “Tesla: Inventor of electrical age.” Canadian Journal of History 49.2 (2014): 347. Print.

Tompson, Clive. “Batteries Not Included.” New York Times. 2009. Web.

Zetter, Kim. “Researchers Hacked a Model S, but Tesla’s Already Released a Patch.” Wired. 2015. Web.

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