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Tesla Motors: Competitive Analysis Overview

Tesla Motors is an automotive and energy storage company founded in 2003 with headquarters in California. It produces electric vehicles and energy storage products. In 2020, Tesla's revenue was $31.54 billion and total assets were $52.2 billion. The document discusses Tesla's competitive environment using Porter's Five Forces model, analyzing competitive rivalry, bargaining power of customers and suppliers, threat of substitutes, and threat of new entrants in the electric vehicle industry.

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93 views10 pages

Tesla Motors: Competitive Analysis Overview

Tesla Motors is an automotive and energy storage company founded in 2003 with headquarters in California. It produces electric vehicles and energy storage products. In 2020, Tesla's revenue was $31.54 billion and total assets were $52.2 billion. The document discusses Tesla's competitive environment using Porter's Five Forces model, analyzing competitive rivalry, bargaining power of customers and suppliers, threat of substitutes, and threat of new entrants in the electric vehicle industry.

Uploaded by

Trâm Trương
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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T E S LA M O T O R S

MADILYN – QT19
COMPANY OVERVIEW
• Industry - Automotive, Energy storage
• Founded - July 1 - 2003 Founders - Elon Musk,
J.B Straubel, Martin Eberhard, Mark Tapenning,
lan Wright
• Headquarters - California, US
• Products - Electric vehicle, Tesla Energy
• Revenue - US$31,54 Billion (2020)
• Total assets - US$52,2Billion (2020)
TABLE OF CONTENTS
01
01 Competitive Rivalry

02
02 Bargaining Power of Customers

03
03 Threat of Substitutes

04
04 Threat of New Entrants

05
05 Bargaining Power of Suppliers
Competitive Rivalry (Strong Force)

https:// Low switching


Small number of firms 
tesla-info.com/model-hi costs
story/MY
Weak force
Strong force

Strong force

How Tesla Can Solve


The Rivalry Between
Existing Rivals? Building a sustainable Scale up to be able Collaborating with
differentiation to compete better competitors to increase
the market size
Bargaining Power of
Customers (Moderate force)

https://www.forbes.com/
sites/edgarsten/2019/08/19/
tesla-is-ev-brand-awareness-
juggernaut-compared-to-
competition/?sh=2e3a6c632dc2 Moderate substitute Low volume of
(strong force) availability purchases
https://www.forbes.com/site (moderate force) (weak force)
s/edgarsten/2019/08/19/tesla
-is-ev-brand-awareness-
juggernaut-compared-to-
How Tesla, Inc. can tackle the
competition/ • By building a large base of customers.

Bargaining Power of Buyers? • By rapidly innovating new products


Bargaining Power of Suppliers (Moderate force)
Tesla’s suppliers are as follows:

Moderate forward Moderate size of


integration suppliers Moderate supply level
(moderate force) (moderate force) (moderate force)

How Tesla, Inc. can tackle • Build an efficient supply chain with multiple suppliers
Bargaining Power of the • Experimenting with product designs using different materials

Suppliers? • Develop specialized suppliers whose business depends on the company


Threat of New Substitutes (Moderate force)

Tesla, Inc. experiences the impact of substitutes on the automotive


and energy solutions industry environment.

Moderate
Low switching costs Moderate substitute performance of
(strong force) availability substitutes
(moderate force) (moderate force)
Threat of New Substitutes (Moderate force)

How Tesla, Inc. can tackle the Treat of Substitute


Products / Services?

• By being service oriented rather than just


product oriented.
• By understanding the core need of the
customer rather than what the customer is
buying.
• By increasing the switching cost for the
customers.
Threats of New Entrants
(Weak force)

Performance and cost


The big challenge for electric vehicles is the bargaining or compromise
between their performance and cost.

Economies of scale
The established players in the market benefit from economies of scale
to a large extent.

Time of entry
The timing of entering the electric vehicle industry is an important
factor that invites current car manufacturers.
THANK YOU
Team 4 – Ivy, Louis, Yasuo,
Kay, Wind

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