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Running head: TESLA STRATEGY 1
Tesla Motors Strategy to Revolutionize the Global Automotive Industry
Name
Institution
TESLA STRATEGY 2
Tesla Motors Strategy to Revolutionize the Global Automotive Industry
Introduction
An increasing number of companies in the automotive industry are investing in green
technology. The result of this investment has been vehicles that have abandoned traditional fuels
in favor of electric operation. Tesla is among the automotive companies which are spearheading
the development of electric cars. In its effort to transform the automotive industry, Tesla is
leveraging its robust supply chain, its loyal customer base and the vision of its Chairman and
CEO Elon Musk (Thompson, 2014). The firm’s strengths and the numerous opportunities in the
industry will undoubtedly propel it into the future of electric-powered and efficient cars.
SWOT analysis
Strengths
There are a number of factors in Tesla’s internal environment that are driving its growth.
The strong relationship that it has established with its customers is among these factors. The
customers are so loyal and pleased with the firm’s products that they serve as the main marketing
tool (Thompson, 2014). Another strength that is enhancing the company’s performance is its
range of products. The company has developed a number of high-performing cars that attend to
the different needs of customers. The strong leadership that Elon Musk provides is yet another
strength. Musk has been able to transform his vision into a reality that has seen the company
capture the hearts of customers (Thompson, 2014). That Tesla has established a presence in
major global markets is another factor responsible for its continued growth. In addition to the
US, the company has set up a base in Europe and had made plans to introduce its cars in China
TESLA STRATEGY 3
(Thompson, 2014). A highly-recognized brand and strong partnerships are other strengths that
Tesla enjoys.
Weaknesses
One of the weaknesses that could derail Tesla’s progress is its near-exclusive focus on
electric cars (Thompson, 2014). Today, many people still use diesel-powered cars and only few
individuals have any interest in electric cars. This means that Tesla is focusing on a very small
segment of the market. Another weakness is that the company is usually unable to meet
production targets. It has often had to push the release date of some of its products forward
owing to delays (Thompson, 2014). As the financial analysis of key ratios will reveal, Tesla’s
