➢Tesla, an American electric vehicle manufacturing company formed

by Elon Musk, Martin Eberhard, JB Straubel, Ian Wright, and Marc

Tarpenning in July 2003. Tesla Motors has its headquarters in Palo
Alto, California. Tesla was chosen by the founders as an homage to
Nikola Tesla, a well-known physicist and innovator.
➢Elon Musk is the co-founder and CEO of Tesla, SpaceX, Neuralink,
and The Boring Company, among other companies.
➢Elon Musk supervises all product design, engineering, and
worldwide production for Tesla's electric automobiles, battery
goods, and solar energy products as co-founder and CEO.
SWOT Analysis:

➢SWOT stands for Strengths, Weaknesses, Opportunities, and Threats,

and it is a methodical planning technique for analyzing an
organization's, projects, or commercial initiative's four characteristics.
A SWOT analysis is a simple yet efficient framework for, exploiting
Strengths, correcting Weaknesses maximizing Opportunities and
tackling Threat.
➢Tesla's growth and operation are fascinating; thus, a SWOT analysis is
required to fully comprehend its major performance and success.
Tesla’s Strengths:
Starting with Tesla Incorporation's strengths, which will contain the good characteristics of the firm
that have bolstered Tesla's position as one of the world's most powerful corporations. The following
qualities, which are seen to be Tesla's strong points, have secured the company's long-term
profitability, expansion, and popularity.
➢ Technology:- The organization exclusively employs new ideas and only utilizes updated and
enhanced elements. This internal strategic component is a source of strength for the organization,
allowing it to generate competitive and lucrative goods [Kessinger 2018]. Other firms, like as
Mercedes-Benz, Daimler, GE, and Toyota, have successfully used Tesla's innovations.
➢ Monopoly:-Tesla Motors established a monopoly by focusing on a particular market, namely
electric vehicles. The goal of the strategic strategy was to delve further into the industry and
increase its possibilities. As a result of this move, the firm has been rapidly evolving among its
counterparties.
➢ Leadership:- The CEO is a huge fan of engineering and devotes all of his energy to producing high-
quality work while also inspiring and coaching team members to help the firm grow. Tesla has
unquestionable success as a result of this approach.
➢ Distribution channel:-Tesla attempts to maintain a high profile and so owns the distribution
channel, which helps the brand stand out in the market.
Tesla’s Weaknesses:
In the SWOT Analysis, any internal characteristics in a corporation that cause any damage or limit performance
evaluation are recognized as weaknesses. So, these are some of the flaws in Tesla's organizational structure that
limit its competitiveness and growth.
➢ Issues with capacity:- Tesla manufactures automobiles at a single facility in Fremont, California. It has a
capacity of 500 000 automobiles, which is insufficient because the company's maximum output restriction
prevents it from aiming larger quantities.
➢ High Debt:-Tesla has around $31.09 billion in long-term debt, according to figures. Interest payments on this
debt are substantial, and they will almost certainly continue to cut into earnings [Anon 2022]. If the
corporation does not deal with the loan down the road, the problem will be the reduction or delay of
overseas investments or any capital expenditures to increase growth.
➢ High prices:- Compared to competitors, manufacture is more expensive, particularly for automobiles with
internal combustion engines. Tesla's rapid market development is hampered by high pricing.
➢ Poor buyer awareness:- Tesla Motors makes all of its goods environmentally friendly from a sustainability
standpoint. They are, however, futuristic, and clients do not yet understand all of the ins and outs of their
technology to comfortably invest in them.
The advice is to review these flaws and try to come up with something beneficial and less dangerous to deal
with large loans while also removing the costly technologies that may deter consumers and investors. Tesla may
also expand the factory and produce additional automobiles in large quantities.
Tesla’s Opportunities:

The opportunity part of this SWOT Analysis highlights the company's potential for development. It's
an external component that, if discovered, may assist Tesla in improving its company performance,
management structure, strategic growth, and other areas.
➢ New technology are preferred:- Tesla has developed a number of revolutionary technologies to
improve market performance and strategic strategies. The corporation is always reinventing itself in
order to provide something new and exciting, such as "hybrid automobiles, green cars, electric cars,
battery-powered cars, and self-driving autonomous cars"[Bhasin 2020].
➢ Diversification of the business:- This element entails establishing and/or acquiring new businesses
in order to reduce exposure to risks and biases in the automobile industry. Diversification is
advantageous to any firm, therefore it would help substantially in improving overall performance.
➢ Initiative to save costs:- "It will need to bring down expenses" if Tesla Motors wants to start making
money. It means that the corporation will have to rethink some significant expenses in order to
develop a more stable and authoritative business. Tesla's ability to decrease costs and preserve
economies of scale while achieving more critical efficiencies in manufacturing and distribution
would rather assist the company lower unit costs and increase the final total in the future quarters.
Tesla’s Threats:
The threat element is paired with a phenomena that prevents the firm from fully using the
benefits that may be drawn from its existing assets. As a result, these are the few dangers
that Tesla faces in order to keep its business afloat despite the market's unpredictability.
➢Competition:- The automobile industry is fiercely competitive, and Tesla must keep a close
watch on its rivals in order to retain its high profile. Top competitors include Ford, Fiat
Chrysler Automobiles, General Motors, and even Google. Because many industries employ
normal internal combustion engines, Tesla has to work harder to distinguish itself.
➢Dealership regulations:- Tesla sells its products straight to customers, bypassing the
middleman, which raises pricing. However, other jurisdictions, such as Virginia and Texas,
prohibit direct sales of a company's goods, implying that such sales can only occur
through dealership restrictions.
➢Investing in the production ramp:- Some people are worried that Tesla won't be able to
fund its access ramp. When Tesla announced that it will produce 1.8 million cars in 2022,
it sparked a lot of curiosity. While it has approximately $18 billion in cash on hand in 2022,
the project's capital expenditures will be significantly higher[Condon 2022] .
Conclusion:

Tesla Motors offers a slew of innovative ideas, strategic plans, initiatives,

and implementations that have the potential to transform the global
automobile industry. Using the SWOT analysis, it becomes clear that the
organization is strong enough, despite certain vulnerabilities and
possible threats. Tesla, on the other hand, depicts excellent production
and efficient tactics that might be even better with further work and
certain business changes.
Reference:
▪ Anon, 2022. Tesla Debt to Equity Ratio 2010-2022 |
TSLA. Macrotrends.net.
▪ Kessinger, D., 2018. Tesla Inc. SWOT Analysis &
Recommendations - Panmore Institute. Panmore Institute.
▪ D, K., 2022. Tesla Inc. SWOT Analysis & Recommendations -
Panmore Institute. Panmore Institute.
▪ Condon, S., 2022. Elon Musk: Tesla should produce over 1.5
million cars in 2022. ZDNet.
▪ Bhasin, H., 2020. SWOT Analysis of Tesla Motors - Tesla Swot
Analysis. Marketing91.