Tesla Motors Strategic Audit

Running Head: TESLA MOTORS STRATEGIC AUDIT 1
TESLA Motors Strategic Audit
Students Name
Professors’ Name
TESLA MOTORS STRATEGIC AUDIT 2
TESLA Motors Strategic Audit
1. Current Situation
I. Current Performance
Despite its continued losses year after year, Tesla remains of the fastest-growing
companies in the U.S. Although it has the best selling electric vehicle of 2018, Tesla recorded
net losses in all quarters of the 2019 financial year. The company reached the 1 billion mark in
terms of revenue in 2015, an indication that it is still growing. In fact, experts attribute its net
losses to its ambitious expansion plan that involves building infrastructure for future
sustainability. Some of its areas of expansion include a new battery production plant, launching
new products such as the cybertruck, and establishing supercharge stations throughout the united
states (Sherman, 2013).
I. Strategic Posture
a) Mission
Tesla’s mission is “to accelerate the advent of sustainable transport by bringing
compelling mass-market electric cars to market as soon as possible.” (Tesla.com, 2020)
b) Objectives
According to Elon musk “the overarching purpose of Tesla Motors… is to help
expedite the move from a mine-and-burn hydrocarbon economy towards a solar electric
economy, which I believe to be the primary, but not exclusive, sustainable solution” (Tesla.com,
2020)
c) Strategy
Tesla follows a differentiation strategy and prides itself on producing electric cars
that are superior to other cars that run on fuel (Griffin, 2008). The company continues to build
new cars that dispel the limitations of previous models of electric cars and provide consumers
with cost-effective cars in terms of fuel usage.
Tesla also uses the growth strategy (Griffin, 2008). Its short-term goal was to build
an electric sports car that could compete with the likes of Ferrari and Porsche. The long term
goal was to use the revenue gained from the sale of the sports car to build a more affordable
four-door sedan. Profits from these two models would then be invested in building a new sports
utility car and also more affordable cars in the future.
Tesla also has a unique retail strategy in that it does not have dealerships but sells its
cars online and through its own stores(Siegan & Siegan, 2011). Potential buyers are offered test
drives before they can purchase a car. Tesla’s target audience is mainly the upper-middle class
who are well informed and environmentally conscious. This retail strategy works for the
carmaker because of its target audience and also allows them to better manage their inventory.
d) Policies
Tesla values R&D since it is focused on changing how people view and use electric
cars that are run by batteries. The company has invested more than 48% of its net sales in R&D
and this has proven to be an effective strategy that attracts new customers with new more
effective models. It also has a resale guarantee whereby they can buy back a car from a customer
after 3 years, at a percentage that is subject to certain terms and conditions. Another policy is that
all executive officers should own a minimum stock percentage according to their title in the
company. Although not a unique strategy, it shows that they value interest leadership and
commitment from its executives.
1. Strategic Managers
I. Board of Directors
Tesla has seven board members, which is chaired by Elon Musk and also acts as the
company CEO and chief product architect.all the other board members are outsiders. It is a
young board with an average age of 50 years (Tesla.com, 2020). All these members have a
background in technology and innovation and many have been part of either Space X or
SolarCity.
II. Top Management
The top management of Tesla was recruited from companies not associated with the
automotive industry. However, there has been a high turnover over recent years due to various
issues. Chief among them is the kind of pressure to perform managers at the company face which
often leads to burnout. The issue of money has also been touted as a possible reason for leaving
as some opt to cash out on their stock options for a big pay check. Managers leaving the
company calls for new hires, which increases uncertainty around the company.
2. External Environment
I. Natural Environment
The electric car maker focuses on renewable energy as a substitute for fossil fuels.
With the controversy surrounding CO2 emissions, the use of renewable energy has become a
popular issue. However, critics oppose electric cars arguing that batteries are toxic and that the
electricity that charges the cars still produce by CO2 emitting plants. The company addressed
these issues by developing household batteries that are charged with solar panel systems. This is
Tesla’s vision as it aims to take more homes off the grid and also reduce CO2 emissions.
II. Societal Environment
a. Economic
 An unstable economy that is yet to recover from the effects of the coronavirus pandemic.
The Chinese market is also extremely volatile and this has a negative impact on the US
markets as well and buyers may not be willing to pay so much for an electric car. (W)
 However, Tesla customers can get tax credits by purchasing an electric car and other green
energy items such as solar panels. (O)
b. Technology
 Tesla is known for its innovation and ability to develop technology. The company has
invested heavily in its R&D department as a strategy to stay ahead of rivals. (S)
 The vehicle batteries are not the only innovation as Tesla cars also have onboard computers
that can update themselves regularly (S)
c. Political-legal
 Tesla still faces significant hurdles in selling its cars in various states. The company is
obstructed by anti-free market laws in US states such as Texas and Connecticut (Pressman,
2016). Also, its retail strategy discourages some people who need to test drive the car since
they have to buy online (S)
 The company has created an image of being environmentally friendly. They strive for
minimum pollutant footprint and pans to use solar power in most of its production plants. (S)
d. Sociocultural
 Environmental issues have taken center stage in the globe as they are debated and legislated
every day. Consequently, the society is becoming more aware and responsible for the
environment. (O)
 Elon’s vision is to have energy without power lines for all homes in remote
places(Middelkoop, 2017). This would reduce the high cost associated with building power
grid infrastructure and popularize solar and battery technology (O)
III. Task Environment
 The automotive industry is highly competitive and having a breakthrough is extremely hard
for newcomers more so if it is a new product (T)
 Competition in the electric car segment is high as other automakers have also begun
developing their own electric car models (T)
 Consumers power is low since they have limited options to choose from
 Power of other stakeholders is medium due to increasing environmental regulations and
unstable gas prices (O)
 The threat of substitute products is high as there are other electric car manufacturers (T)
 Barriers for new entrants are high and if Tesla succeeds in this market, other automakers
might invest more in electric cars (T)
TESLA INC. External Factor Analysis Summary
External Factors Weigh Rating Weighted Comments

t score
Opportunities
The fluctuating 0.4 4 1.6 One of the main advantages that Tesla
prices of oil and the has over its rival is the fact that oil is a
fact that electricity is non-renewable resource and its prices
renewable energy have been fluctuating over the years.
This makes it an unreliable source of
energy as the population of people with
car increases around the world. On the
other hand, electricity is a renewable
source of energy, which appeals to many
people who value environmental
conservation. It is also relatively cheaper
to produce as compared to fossil fuels.
Tesla battery 0.1 2 0.2 It is true that the batteries of Tesla can
technology can be get other wide ranges of application.

used in other areas Despite this, the market manufacturing
such as solar panels batteries is flooded globally. This factor
for storing power is among the least that can ensure
survival of Tesla
Environmental 0.05 3 0.15 Issues regarding the conservation of the
issues are currently environment have always been on
on peoples priority people’s minds. But they do not compare
list with others in the vehicle industry such
as affordability and making a living with
the current global crisis such as the
corona virus. This as a factor is not
essential for Tesla’s survival
Support from 0.05 4 0.2 Governments have been giving tax
governments such as credits to people who purchase green
tax credits products such as electric cars and solar
panels. Pollution and global warming is
an issue that is of concern to most
customers. But electric vehicles that are
made by Tesla are luxurious and target
high end customers. To this regards,
most individuals even if they are
concerned about the environment will
still not be able to afford and this reason
makes this factor not critical for the
survival of Tesla.
Market potential that 0.2 5 1 Tesla has made a name for itself as a
is large luxury car that competes with the likes
internationally, of Porsche and Ferrari. Many rich people
particularly in China, outside the United States view it as a
Canada and Europe symbol of status and are willing to
purchase it. This presents an attractive
market for Tesla internationally, and
could significantly boost its sales.
External factors
Threats
The operating costs 0.05 3 0.15 It is true that the costs of operation at
are less while the Tesla are low but the competition is high
competition is very due to other companies such as BMW,
high Nissan, Ford and KIA being in the
market. Tesla has managed to stand out
from the rest due to the luxury vehicles
that it is capable of producing. In fact it
has been able to maintain the being the
best choice company producer of electric

vehicles. Even it is still not able to meet
the clients demand. Hence it should be
ranked highly on this
Slowdown in the 0.05 4 0.2 The economy has greatly slowed in the
economy last few months due to the coronavirus
pandemic and others crises that are
common worldwide. But in the recent
years Tesla has not been much affected
with this crisis. Hence Tesla still rates
high on this.
Resource pool that is 0.1 3 0.3 Tesla might be having issues with
limited in experience enough skilled manpower to handle and
meet the clients demand. But with the
help and partnership from Elon Musk
other companies such as SpaceX, it is
better than its competitors. Additionally,
its Gigafactory is located in Silicon
valley where there are many intellects.
Hence it still ranks high on this.
Total 1 3.75
3. Internal Environment
I. Corporate Structure
 Tesla uses a centralized structure where the CEO is very powerful. This can either be a
strength or a weakness depending on the actions of the CEO (W)
II. Corporate Culture
 The main focus at Tesla is always improving production and problem-solving. It can be
argued that the culture at Tesla is similar to that of a tech company and less like an
automaker. The chief focus in tech companies is innovation and fostering functionality as a
way for the company to differentiate itself from rivals. As mentioned before, this has been
Tesla’s strategy since it was founded.

 This company believes in its product more than making money, ad this is demonstrated by
the losses it has made for years. For instance, the company does not charge people who use its
supercharging station.
III. Corporate Resources
a. Marketing
 The company has won multiple awards for its innovation and producing cars that satisfy
consumers.
 The sales and marketing team for Tesla is based in Fremont California (Tesla.com, 2020).
In its annual report, the company states four marketing goals, which include generating
demand for Tesla cars, Building the company’s brand awareness and also managing the
corporate reputation, encouraging customer feedback for product development, and
managing existing customers to establish loyalty and also gain word of mouth advertising.
 The company has a unique approach to marketing that involves direct sales and running its
own showrooms. The showroom approach allows Tesla to manage its brand image and also
manage sales more effectively and efficiently.
 Tesla main marketing challenge is not only selling vehicles, but convincing consumers to
accept an entirely new mode of personal transport.
b. Finance
INCOME STATEMENT Q4FY2012 Q4FY2011

Net Sales ($ mil)
EBITDA($ mil) -367 -237
EBIT($ mil) -396 -254
Net Income ($ mil) -396 -254
BALANCE SHEET Q4FY2012 Q4FY2011

Cash & Equivalents ($ mil) 226 287
Total assets ($ mil) 1114 713
TESLA MOTORS STRATEGIC AUDIT
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Total debt ($ mil) 467 280

Equity ($ mil) 125 224
PROFITABILITY Q4FY2012 Q4FY2011

Gross profit Margin -95.9% -124.6%
EBITDA margin -88.6% -116%
Operating margin -95.4% -123.1%
Return on assets -35.6% -35.7%
Return on equity -3.18 -1.14
DEBT Q4FY2012 Q4FY2011

Current ratio 0.97 1.95
Net cash/debt -241 -31.72
Debt to equity ratio 3.74 1.25
Equity ratio 0.11 0.31
ASSET MANAGEMENT Q4FY2012 Q4FY2011

Asset turnover ratio 37% 29%
Inventory turnover ratio 1.5 4.1
Receivables turnover ratio 10.9 11.2
From the financial ratios above, it can be seen that Tesla’s total revenue has been increasing year
after year. This is mainly driven by increasing car sales as the company becomes popular among
consumers. While sales are expected to keep on rising ,the company still has to rely on internal
investors for capital expenses such as the construction of the the Gigafactory that will improve
its production capacity.
 Looking at the debt analysis, the numbers are not very god for the company as it shows that
it is struggling to pay outstanding debts. While some of these figures make sense for a start-
up, Tesla is has accrued serious debts as it strives to expand its operations.
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 Looking at the income breakdown summary, the EBITDA and EBIT metrics are on the
negative side despite an increase in sales. This, coupled with the net income, show that the
company is not making any money because it has entered an industry where the start-up
costs are very high and it has a small market share.
 The balance sheet analysis shows that the company is preparing for major investments in the
future. The significant drop in cash and cash equivalents is indicative of the company
spending the money it has saved or cashing in on some investments. The total assets
increased pointing to new investments being made. The total debt also increased which is
indicative of a growth strategy
 It can, therefore, be deduced that the company is burning through its cash reserves at an
alarming rate as it finances its growth plan (Waters, 2019)
c. Leadership
 Tesla’s CEO stands out as one of the most innovative and visionary leaders in the
contemporary world. He has had a cleat vision for the company since its was founded back
in 2003. he is a renowned entrepreneur and engineer who is also involved in a host of other
ventures from where he has horned his leadership skills.
 As mentioned before, the CEO leads a board of directors that is relatively young and mostly
drawn from the tech world, which is a clear indication of the direction this company is
taking, one of innovation.
 Elon musk is a visionary leader who inspires those around him to think outside the box and
develop innovative solutions to modern challenges.

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d. Operations
 Tesla aims to make its products more affordable by relying on innovation and smart business
practices.
 The company has also diversified by venturing into energy storage through its powerful
batteries. This is a way to break into a new market and increase its revenue streams.
 Also, the construction of the Gigafactory is a significant achievement for the company since
it will allow it to increase production, which then makes it easier to compete with the
traditional carmakers. This new plant is projected to reduce the production costs of tesla
batteries as well as the electric cars.
e. Human Resources
 The goal of the Tesla human resources department is to ensure that the company has a
workforce that is both technical and capable.
 The company is not know to pay its employees exceptionally well, but they are motivated
since they believe in the vision of the CEO Elon Musk, of changing the world.
 The company has a positive work environment that is often accompanied by tough demands
for results (Furr & Dyer, 2020) (S)
 Tesla hiring policy is unique in that they hunt for employees who fit a tech start-up company
rather than the traditional hires expected of an automobile manufacturer
 The people are considered to be the most valuable resource in this company as it strives to
achieve social change through its environmentally friendly products.
TESLA INC. Internal Factor Analysis Summary
Internal Factors Weight Rating Weighted Comments

Score
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Opportunities
O1: Highly 0.025 5.0 0.125 Tesla, Inc. is renowned for its high level of
Innovative innovation. This strength empowers the
organization to develop competitive products. The
company has also diversified its product portfolio
by developing unique power pack applications.
This represents core strengths in electric power
systems that could be applied in domestic homes
and commercial purposes. Innovation has enabled
the company to develop electric vehicles and other
energy storage solutions meant for applications in
electric market solutions, load shifting, and power
back-up solutions. Additionally, automation is an
aspect of innovation that has enabled the company
to achieve consistency when it comes to the quality
of Tesla’s products. Automation has also enabled
the company to be in a better position to scale up or
down depending on market demand conditions.
O2: Strong Brand 0.25 4.0 1.0 The company has positioned itself as a distinct
brand in the market with a special focus on
developing cars that run on electric energy. The
Tesla brand alone is a remarkable icon of
innovation and renewable energy solutions. The
company’s strong brand enhances its ability to
attract as well as retain new customers. The
products that Tesla brand produces are also highly
differentiated and that makes it a leader in electric
power train technology. The company employs
digitized power train systems and their electric
power train technologies enable the production of
energy efficient vehicles that are more efficient
than the currently available internal combustion
engine and hybrid vehicles.
O3: Human 0.20 5.0 1.0 Tesla has created a name for itself in the job market
Resources as an employer because the work environment is
management positive. Even though the job is tough and there are
demands to be met, the company has a culture of
diversity and collaboration that makes work fun.
Furthermore, Tesla head hunts individuals who are
innovative rather than the traditional automaker
job roles.
O3: A Strong 0.25 3 0.75 Tesla, Inc. has invested heavily in R&D as it
Research and recognizes its innovation as one of its major
Design competitive advantages. The company pushes its
Department employees to exceed expectations and come up
with products that set is apart from its industry
rivals.
Weaknesses
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Weight Rating Weighted Comments

Score
W1: Weak 0.25 5 1.25 Tesla, Inc. has been making losses year after year
Financial Position since it was founded in 2003. one of the major
reasons for these losses is selling a low volume of
cars due to low production capacity. Customers
have to wait for a while before they can get their
car once they have made an order. Also, the
company has been burning through its financial
reserves due to its aggressive expansion strategy.
This leaves the electric cars company is a
precarious financial position that could soon affect
its operations. However, things have been looking
up and the company is expected to turn around its
financial situation as more people become
environmentally conscious.
W2: High Prices 0.15 5 0.75 Tesla cars are relatively costlier compared to other
cars that run on fuel. They are not affordable to the
lower middle class, even if one is passionate about
preserving the environment. That is why the
company targets the upper middle class who have
the money to make such a purchase. These high
prices have limited the company’s ability to expand
to more markets, which in turn adversely affects its
profitability.
W3: Low 0.25 4 1 Tesla does not have the capacity to produce a large
Production volume of cars since it has not built enough
Capacity production plants. This has been an issue for a
while and even though the company has released
new car models, doubts still linger about its ability
to compete with the established automakers in
terms of fulfilling large orders.
4. Analysis of Strategic Factors
I. Situational Analysis (SWOT)
a. Strengths
 A strong R&D department that produced a superior quality battery and power-train(DiStasio
& DiStasio, 2020).
 A culture that fosters innovation and creative problem solving
 Superior customer service as demonstrated by the success of word of mouth marketing.

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b. Weaknesses
 Its cash reserves have reduced greatly due to continued losses year after year.
 Its is a small company compared to established automakers
 Low production that does not meet demand and opens the door for a rival to grab this market
share
c. Opportunities
 The ongoing conversation and focus on environmental sustainability gives Tesla an
advantage to produce and sell electric cars.
 Fluctuating prices of fuel are also pushing more people to find alternatives
 The automotive market is big in places such as Canada, China and Europe provided Tesla
penetrates this market.
 It has benefited from government subsidies for customers who buy electric cars and other
green items
d. Threats
 The biggest threat for Tesla is an established automaker venturing into the electric car
segment and beating them using its innovation.
TESLA INC. Strategic Factor Analysis Summary
Strategic Weight Rating Weighted Short Intermediate Long Comments

Factors score
S1:Innovative 0.2 5 1 X This SF was
technologies chosen because
Tesla is a highly
innovative and this
makes it stand out
from its
competitors.
Innovativeness for
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Tesla translates
into sales as this
factor enables the
company develop
profitable and
competitive
products. It enabled
it become the most
sold electric cars of
2019. Hence the
weighting of this
SF factor is very
high at 0.2 since it
is key for the
survival of the
company in the
vehicle industry.
The rating is at 5,
since Tesla is the
leader in electric
cars
S2 Strong 0.2 3.5 0.7 X This SF was
brand chosen since Tesla
is a symbol of
renewable energy
and innovation
solutions. The
brand ensures it
retains and attracts
new customers. It
is weighted high at
0.2. The rating is at
3.5 as Tesla is
among best brands
in the vehicle
industry.
W1High 0.1 2 0.2 X X This SF was
prices selected because
prices of Tesla are
relatively high in
comparison to their
competitors. This
hinders the
company from
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rapidly growing its

market share and
customer base.
This is especially
in the developing
countries. Due to
this it is weighted
relatively high at
0.1The rating is at
2. As it is one of
the main factors
that hinder it from
rapidly growing its
market share.
W2 Limited 0.1 2 0.2 X This SF factor was
market chosen because the
presence market presence of
Tesla is limited.
Most revenue of
Tesla is from the
US. In the
developing world
and China it only
has a small
presence. This
strategic factor
limits Tesla from
tapping into the
overseas markets
that are growing
rapidly. This factor
is weighted
averagely high at
0.1 The rating for
this factor is at 2
01Global 0.1 4 O.4 X X The reason why
Sales this SF factor was
expansion selected is due to
the impact it have
on the profits of
Tesla. Countries
where Tesla lacks
market presence
that is significant
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are experiencing
significant
economic presence
and this brings the
opportunity for the
company. Tesla
can increase sales
for example by
expanding in
renewable energy
and automotive
Asian markets. Due
to this reason the
strategic factor is
weighted at 0.1 and
is given a rating of
4
02 Business 0.1 4 0.4 X This SF factor was
diversification chosen because of
the opportunity
Tesla has to
increase its market
share by
diversifying. This
SF factor involves
acquiring or
establishing new
businesses in order
to ensure that it
reduces risks of
exposure in the
market of the
automotive. As a
result of this, this
factor is weighted
relatively low at
0.1and assigned a
rating of 4
T1 Aggressive 0.1 2 0.2 X X This SF factor was
Competition chosen due to the
aggressive
competition that
does exist among
automotive
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companies. This is
a threat to Tesla as
other firms are
strongly venturing
into the electric
vehicles industry.
As a result of this,
this SF factor is
weighted relatively
high at O.1 and
given a rating of 2
T2 Dealership 0.1 2 0.2 X This SF factor was
regulations chosen because of
the current model
of Tesla of selling
products directly to
clients. Some states
such as Texas have
regulations that
require products to
go through dealers
and this results in
price increment.
This is likely to
affect sales of the
company’s
products. This SF
factor is weighted
at 0.1 and assigned
a rating of 2
Total 1 3.3
5. Strategic Alternatives and Recommended Strategy
I. Strategy Alternatives
a. Penetrate the Chinese market by acquiring a small electric car manufacturer and
then develop it to Tesla’s standards. The advantage with this strategy is that Tesla would gain
trust and recognition in that market, leading to increased sales. The drawback is that it might not
have enough funds to execute this strategy and Chinese regulations might be too hard to satisfy.
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b. Building more factories to increase production and meet the demand. With this
strategy, more cars would be produced and sold. However, the cost of making a new plant might
be a deterrent and the company has to decide between a whole new plant and retrofitting an old
plant.
II. Recommended Strategy
Reduce prices - a major challenge for Tesla is that electric cars are still too
expensive for the majority of the consumers. While the cost of driving an electric car might be
cheaper compared to buying fuel for a car in a period of 10 years, most people consider the
upfront fee when making purchase decisions. Tesla needs to reduce the upfront costs of their
vehicles if they wish to compete with the fuel powered cars. The Gigafactory is expected to help
the company reduce costs and allow it to bridge the gap between present sales and its plans for
success in the future.
Diversification- in order to minimize risk, Tesla needs to incorporate its technology
into other products that are not necessarily related to the car industry.There is always the risk of
the mainstream automakers venturing into electric cars segment, which would bring serious
competition to Tesla. Already, its batteries have gained a reputation as some of the best in the
world, and it is possible they can be used for other purposes and not vehicles only. Investment in
another product that uses these batteries could open up new markets for Tesla while also
providing a wide audience for the company to spread its message about sustainability.
Better management of production, debt, and demand- it has been shown that Tesla
lacks the capacity to meet existing demand for its electric vehicles. This means that the company
is not getting the maximum revenue it should get if it meets the demand of the existing market.
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Consequently, this inability to meet demand and generate maximum revenue has seen it struggle
financially with debt obligations. This is a critical situation that could see the company struggle
to attain its long term goals. The company continues to assume that other industry players will
not compete with it in the electric vehicle segment but if ford or Toyota were to build a more
efficient and cheaper EV, Tesla’s products would fail. It is inevitable that these other automakers
will venture into this market, and it is the best time for tesla to secure its market share.
6. Implementation
a. As the company releases new models such as the cybertruck, it must address the
issue of shared production facilities by acquiring a new facility to expedite production(Kolodny,
2019). Having customers wait for months before their order can be manufactured and delivered
is negatively affecting the company’s reputation.
b. More efforts should be put into producing a car for the ordinary car buyer because
it would make Tesla a mainstream automaker. This would see its sales increase drastically and
the company eventually turning profitable.
7. Evaluation and Control
This company needs to look at its production line and implement strategies to
improve efficiency. This is important especially now that it has several models. It might become
completely necessary to acquire a new plant if production cannot meet demand and with the need
for maximum efficiency. Also, the company needs to form a team to evaluate what is needed to
improve efficiency. This team has to find answers to questions such as do the different models
share some car parts, and how should Tesla invest to improve its advertising.
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October 2020, from https://www.ft.com/content/13dcf22a-66c4-11e9-9adc-
98bf1d35a056
Appendices
Appendix I
25
Source: (Tesla annual reports, 2012)
Appendix 2
26
Source: (Tesla annual reports, 2012)

Tesla Motors Strategic Audit

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Running Head: TESLA MOTORS STRATEGIC AUDIT 1

TESLA Motors Strategic Audit

TESLA Motors Strategic Audit

states (Sherman, 2013).

Tesla’s mission is “to accelerate the advent of sustainable transport by bringing

compelling mass-market electric cars to market as soon as possible.” (Tesla.com, 2020)

According to Elon musk “the overarching purpose of Tesla Motors… is to help

with cost-effective cars in terms of fuel usage.

utility car and also more affordable cars in the future.

commitment from its executives.

II. Top Management

II. Societal Environment

energy items such as solar panels. (O)

that can update themselves regularly (S)

they have to buy online (S)

grid infrastructure and popularize solar and battery technology (O)

III. Task Environment

for newcomers more so if it is a new product (T)

developing their own electric car models (T)

 Power of other stakeholders is medium due to increasing environmental regulations and

unstable gas prices (O)

might invest more in electric cars (T)

TESLA INC. External Factor Analysis Summary

External Factors Weigh Rating Weighted Comments

technology can be get other wide ranges of application.

best choice company producer of electric

strength or a weakness depending on the actions of the CEO (W)

II. Corporate Culture

Tesla’s strategy since it was founded.

III. Corporate Resources

corporate reputation, encouraging customer feedback for product development, and

manage sales more effectively and efficiently.

accept an entirely new mode of personal transport.

INCOME STATEMENT Q4FY2012 Q4FY2011

BALANCE SHEET Q4FY2012 Q4FY2011

Total debt ($ mil) 467 280

PROFITABILITY Q4FY2012 Q4FY2011

DEBT Q4FY2012 Q4FY2011

ASSET MANAGEMENT Q4FY2012 Q4FY2011

its production capacity.

costs are very high and it has a small market share.

indicative of a growth strategy

alarming rate as it finances its growth plan (Waters, 2019)

ventures from where he has horned his leadership skills.

taking, one of innovation.

develop innovative solutions to modern challenges.

batteries as well as the electric cars.

workforce that is both technical and capable.

for results (Furr & Dyer, 2020) (S)

rather than the traditional hires expected of an automobile manufacturer

achieve social change through its environmentally friendly products.

TESLA INC. Internal Factor Analysis Summary

Internal Factors Weight Rating Weighted Comments

Weight Rating Weighted Comments

4. Analysis of Strategic Factors

I. Situational Analysis (SWOT)

& DiStasio, 2020).

 A culture that fosters innovation and creative problem solving

 Superior customer service as demonstrated by the success of word of mouth marketing.

 Its is a small company compared to established automakers

 The ongoing conversation and focus on environmental sustainability gives Tesla an

advantage to produce and sell electric cars.

penetrates this market.