Tesla Motors SWOT Analysis 2021

Tesla Motors SWOT Analysis 2021

This Tesla Motors SWOT is also called an internal as well as external analysis of strategy. It gives an image of the situation and sparks discussion on the company’s strategies and its current situation. 

The report can be used to assess the state of the company’s business and develop a strategy for business. 

It can also be used to inform the overall strategy sessions of Tesla Motors. It can also be used to delve into a particular area such as marketing, production, and sales.

tesla motors swot analysis

Background of Tesla

Tesla Motors SWOT Analysis: Tesla Inc. founded in 2003, is named after Nikola Tesla, a famous scientist, and inventor. This review of the SWOT on Tesla will explore its fast-paced business model as well as its innovative designs for automobiles.

Tesla’s energy-efficient approach and luxurious design have helped make it one of the most prestigious automotive industries in the world. 

Martin Eberhard and Marc Tarpenning who were the original creators of Tesla Motors (former name) had a meeting along with Elon Musk in February of 2004. Musk provided US$6.5 million to their initial US$7.5 million investment round.

Tesla revolutionized the automotive industry with its green energy system and made an enormous global impact. Tesla’s first car was the Roadster. The roadster was the first car that used lithium batteries.

Based in California, United States, Tesla has grown in popularity with the American people as a top electric car with an ingenious design.

Its SWOT analysis conducted by Tesla will give more insight into its operational model as well as future projections.

Company Name Tesla, Inc.
Founder(s) Martin Eberhard and Marc Tarpenning
Founded in 2003
Company Headquarters Palo Alto, California, United States
Present CEO(s) Elon Musk (Oct 2008–)
Company Type Public
Industry The automotive industry, Battery Energy Storage, Photovoltaic systems
Number of Employees 70,700+ (2020)
Annual Revenue 31.54B (2020)
Operating income $1.994B (2020)
Area of service 35 countries including the USA
Link to website www.tesla.com/

Strengths In The SWOT Analysis Of  Tesla

tesla motors swot analysis

Tesla even though it is a younger company in the automobile market, has a lot of advantages that work to its advantages. They are:

  • Innovative: Tesla as a brand is known for its unique design. The design of their vehicles is fresh and elegant, bringing the highest level of comfort and quality for the customer. The electric vehicles they manufacture are managed with care from conception to engineering, and they are constantly adding the value of their vehicles. For instance, the company recently created the world’s first completely electric semi-truck, as well as the latest sports vehicle. These advancements are an important catalyst to attract new customers.
  • Energy-efficient Electric Cars: Many companies are moving towards electric vehicles and are creating new models, however, Tesla has proved to be the top manufacturer in this area. Tesla’s vehicles have a great range and can give up to 600 miles on one charge. 3 three Tesla models S, 3, and X are on high on the chart for the length one charge will be able to take you. A renewable energy source is a sustainable option for the next generation. Since the entire world is heading towards sustainable growth and sustainability, these attributes give Tesla an enormous competitive advantage.
  • Best Employer: Tesla President Elon Musk was known for taking an eye on the abilities over education qualifications. The company’s employees reflect this as well. Tesla is an excellent employer and employs highly skilled people. The company has a wide range of employees and creativity is encouraged at Tesla. Tesla has been featured on Forbes rankings of the top employers across a variety of areas over the past few times.
  • Dominance over the competition in US Electric Vehicle Sales: Based on statistics, Tesla has been the leading company in electric vehicle sales for the past couple of years. In the year 2019 three of the top 7 selling electric cars, 2019 were Tesla models. This further builds trust with new customers and makes them more likely to purchase Tesla cars based on past sales.

Weaknesses In The SWOT Analysis Of  Tesla

tesla motors swot analysis

The internal elements of the company that cause damages or limits to performance evaluation are identified as weaknesses in the SWOT analysis. These are a few of the flaws in Tesla’s structure that affect its effectiveness and its growth.

  • Limited Production: In order to provide the highest quality, it’s evident that there will be many costs involved. However, the production cost hinders Tesla’s capacity to produce. Cost of production, resources for management, and space are the primary restriction. The company is located in just one or two countries and isn’t able to make use of the more abundant resources in other countries.
  • Reliance on Musk’s image as a brand: Tesla has come a far since its inception however, the company’s growth is dependent upon Elon Musk alone. Musk’s brand image is what drives a lot of consumers to desire Tesla products. But, Musk also has other ventures to support while carrying Tesla on his own isn’t easy.
  • Production issues: The vehicles manufactured produced by Tesla are frequently on the news for being involved in accidents because they are automated in their operation. The high quality of their technological advancement increases the chance of mechanical failures as well as other problems in production. The delays in production, launch, and production are observed every day because of this at Tesla.
  • Incapacity to meet demand: The factors mentioned above will result in an inability to satisfy demand. The continuous experimentation and difficulties that arise from this process could result in an imbalance between the demand and supply of Tesla cars on the market.

Opportunities In The SWOT Analysis Of  Tesla

tesla motors swot analysis

The section on opportunities in this SWOT Analysis highlights the upcoming possibilities for expansion for the company. It is an external element that, if it is discovered, will assist Tesla to enhance its performance in business as well as its management structure and strategic growth, among other things.

  • Expansion across the globe: As noted earlier, Tesla is found in just 35 countries. This leaves a vast array of markets and countries Tesla can reach out to and market its products. Asian countries in which the electric vehicle market is only starting to take off, are an excellent possibility for Tesla to explore.
  • In-house battery production technology for batteries: Tesla has relied on external sources to source its batteries, and a finite supply has proved to be an issue previously. The company has now is planning to bring the manufacturing of their batteries into-house. If done properly it could reduce the amount of time and cost for the business.
  • Economic viability: As a premium car manufacturer with cutting-edge features, the sales of Tesla’s offerings are through the top. But there’s ample opportunity to offer some of the same features, but with less variety and create more affordable models that are geared towards more people. For instance, the Tesla Model 3 car is an excellent base for this since it’s a more costly version of the Model S but it lacks some features.
  • Autonomous driving: has had its own set of challenges because of accident-related incidents Tesla will greatly benefit from autonomous driving technology in the near future. Enhancing the technology to ensure its safety is crucial for Tesla, as it continues to attract many customers.

Threats In The SWOT Analysis Of  Tesla

tesla motors swot analysis

  • The market: is competitive Companies are shifting towards more sustainable production. As a result, Tesla faces heavy competition from rivals around the globe. They offer products at lower prices, allowing buyers to buy them. In this way, Tesla is being threatened by other firms that have a greater hold over the market for automobiles and is now moving to environmentally friendly production.
  • Slow customer acceptance: Tesla offers innovative solutions however these may not be appreciated by the customers right away. In addition, the claims of product liability that Tesla has been battling are not in any way beneficial to the goals that Tesla is trying to accomplish. Because of this, a significant amount of customers are skeptical of purchasing Tesla products, which can be a significant obstacle to Tesla.
  • Insufficient raw materials: For the production of their products Tesla uses premium metals and alloys like Aluminium Steel, Nickel, etc. during the process of manufacturing. They are costly and are not always readily accessible. Any change in the price of these materials can greatly impact Tesla’s production.
  • Legal complexities surrounding Self-driving vehicles: are new in many areas and, as such, there aren’t any legal laws governing their usage. This has caused legal problems in the past and is currently threatening the company’s expansion.

The limitations of SWOT analysis for Tesla Motors

While SWOT analysis is a popular tool for strategic planning, SWOT analysis is used widely to plan strategic strategies However, the analysis has its fair share of drawbacks.

  • Certain aspects or capabilities of an organization could be both a strength as well as a weakness at the same time. This is among the main drawbacks of SWOT analyses. Changes in environmental regulations can be damaging to companies, but however, it could also be an opportunity in the sense that it allows the company to compete in a position to compete with its competitors or gain an advantage over its competitors when it is can develop its products more quickly than its competitors.
  • SWOT is not a method of determining how to gain competitive advantages and therefore it shouldn’t be a complete solution.
  • The matrix serves as an initial point of reference for discussions on how suggested strategies might be implemented. It provides an evaluation time frame, but no implementation plan that is based on the strategic competitiveness of Tesla Motors
  • The SWOT model is a static analysis and analysis of the existing conditions and a small number of potential modifications. As the environment, circumstances, as well as threats, and strategies, evolve, the dynamics of the competitive landscape will not be apparent in the form of a single matrix.
  • SWOT analysis could cause a company to focus too much on one external or internal aspect when formulating strategies. There are interrelations among important external and internal elements that SWOT doesn’t reveal, which can be vital in formulating strategies.

A SWOT Analysis That Is Weighted Tesla Motors

Due to the previously identified weaknesses of the SWOT analysis/ matrix, the management of corporations have decided to assign an appropriate amount of weightage for each of the strengths and weaknesses of the business. 

They also consider the likeliness of the events happening in the near future and what the effect can be on the performance of the company.

This is referred to as weighted SWOT analysis. It’s better than basic SWOT analysis as With weighted SWOT analysis Tesla Motors managers can focus on the most important aspects and eliminate the less important ones. 

This also helps solve the long list issue which is when organizations create an extensive list, but none of the elements are considered to be crucial.



Tesla is a well-known innovator in the areas of innovation and sustainability. Tesla has the capabilities to remain successful according to a SWOT analysis. There are certain challenges that could be faced by the firm.

The expansion of international operations of the company in Asia as well as other regions of the globe is vitally important. Tesla must reconsider its strategies and concentrate on growing its worldwide popularity.

Tesla is a groundbreaking car company that is determined to alter the way we drive in the near future. 

They’re not just focused on creating stylish green vehicles for the rich, but also to make advancements in autonomous driving.

This SWOT analysis examined each of Tesla’s strengths as well as its weaknesses, opportunities and threats. Tesla must take decisive steps to expand its market share as well as maintain financial stability.

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