Tesla (pestle analysis)

Political factor

Government incentives for electric automobiles opportunity. Tesla uses

both gas and electricity. But these cars use a lot less gas than regular cars.
The government has taken measures to advance the development of
electric and hybrid engines, and buying an electric car may even qualify
you to a specialized tax break. The possibility to improve its financial
success through government incentives.
Whereas, Mercedes' activities are highly dependent on political stability.
Now let us say the nations where it conducts business are suffering political
unrest. Mercedes will also experience operational interruption that causes a
financial loss. Mercedes would be suitable if a government implemented an
investor-friendly taxation policy. Losses would result otherwise (FRUE,
2018).

Economic factor

In anything, materials are getting less expensive for Tesla. Electronics in

particular are less expensive now, which is wonderful for the business.
Their cars may become less expensive as they become much well by
consumers. Problems with economic stability, especially in Europe and
Asia, are a risk to the company's financial performance.
However, High inflation increases Mercedes' production costs. Every
vehicle's price has grown as a result. As a consequence of all these
problems brought on by excessive inflation, less people will buy Mercedes.
More opportunities to achieve long-term growth objectives are available by
nations with strong economic growth rates. Consumer spending becomes
more cautious whenever the economy is expanding slowly, which directly
impacts Mercedes.

Social factor

The requirement to utilize as much fuel as a typical vehicle is reduced by

an electric vehicle. And the environment will benefit significantly from that.
Not to mention that using an electric vehicle will be less expensive than
buying a normal one. Environmental sustainability is a Tesla feature. It is
also fresh. There aren't many automobiles on the market that can match
Tesla's power and luxury. 
Whereas, Mercedes-Benz will therefore profit from rapid increasing
population that is mostly driven by a rise in the proportion of young people
and a rise in the buying power of this market. The organization that wants
to enter the market must perform in-depth study to learn about local
consumers. Help them to know the various cultural norms, beliefs, and
traditions of each region and adjust their products accordingly

Technology factor

Tesla is in a great position to incorporate automation and artificial

intelligence (AI) into their automobiles. It supports the business in keeping
a competitive advantage over rivals. It allows Tesla to use less fuel and
opens up the door to sustainability and usability in the future. The most
significant external elements from these business environments must be
identified and addressed.
Therefore, Technology advancements and innovation are developing very
quickly. Businesses are becoming more mechanized and moving toward
online shopping. To compete with or outperform its rivals, Mercedes must
stay current on the technology they utilize and the products they are
supplying to consumers (MOMIN, 2022).

Ecological factor

The cars are marketed as environmentally friendly because it uses

electricity more than gas. Tesla vehicles abide by many environmental
regulations and barely impact carbon emissions By emphasizing on the
environment, Tesla has separated himself in a field that no one can match.
By analyzing the biological elements, Tesla can expect growth.
However, Mercedes-Benz must adopt sustainable production methods to
improve the impression of its business and to meet environmental laws in
many nations. The cost of changing to environmentally friendly methods
will greatly impact Mercedes' profit margins. As the globe transitions
between fossil fuels to renewable energy, electric cars should also be
adopted.
Legal factor

Tesla is extending its market reach. They'll have had to stay

current on their worldwide patents. It will take longer to develop if
you don't. Civil cases could also stop it. Tesla has the ability to
expand its business the right way worldwide; it should think about
extending global intellectual property protection.
Whereas, the purpose of laws governing intellectual property and
other data protection measures is to preserve the patents and
ideas of organizations who solely benefit from the information. If
there is a high likelihood that the data will just be stolen, the
system will lose its competitive lead (KISSINGER, 2019).