Porter Analysis
Threat of substitutes
The Tesla Model X faces a high threat of substitutes. There several options with regard to
crossover SUV’s available that year-over-year are becoming increasingly more
fuel-efficient including hybrid electric vehicles. In today’s market, consumers are more
likely to purchase a vehicle of this type due to the abundance of refueling stations
available. The current availability of charging stations pale in comparison to that of
gasoline refueling stations which make the decision to buy the Model X over a substitute
that much more challenging.
Threat of new entry
Tesla faces minimal threat of new entry into the full electric vehicle market due to the high
cost associated with developing and introducing a fully electric vehicle to the market.
Tesla’s product would be impossible to duplicate due to unique product patents and
proprietary technology.
Threat from established rivals
Tesla does, however, face a potential threat from other vehicle manufacturers producing
their own fully electric crossover models. Chevrolet and Nissan already introduced their
own fully electric vehicles to the market and manufacturers like Audi and Porsche will be
introducing their own all-electric luxury vehicles to the market in the future.
Bargaining power of suppliers
Tesla as a whole is highly dependent on its lithium-ion battery cell suppliers to meet
market demand. However, since materials are provided from a variety of vendors the
bargaining power of their suppliers is limited. Tesla’s chassis and engine and engineering
are all handled in house which also limits the bargaining power.
Bargaining power of consumers
Based on the fact there are currently no other comparable substitutes on the market and
