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TESLA,
INC.
 SWOT ANALYSIS
S 1. Elon Musk and team – bold vision and 1. Elon Musk – Public Relations mishaps due
W
T bold leader. to high exposure to public (mainly via Social
E
R 2. High Brand Value – market leader for EVs Media – Twitter).
A
E (cutting edge technology). K
N 3. High Brand Loyalty – customer centric 2. High Debt – Funding construction of
N
G business model, similar to Apple. Gigafactories worldwide affecting
E
T 4. Gigafactory – benefitting from economies financial statements, low profits.
S
H of scale. S
S

O 1. Intense competition from established rival

P 1. Government providing tax rebates, tax automotive brands.
T
P breaks, low-interest loans, grants and so H 2. Negative Word-Of-Mouth due to very low
O on for EV users. R profits.
R E 3. Potential loss of investors due to falling
T 2. Manufacture and Mass-Produce Tesla’s A stock price.
U T
via Gigafactory – gaining Competitive 4. Competitors introducing disruptive
N S
I Advantage. technologies.
T 5. Economic instability - financial crisis in
Y international markets.
 Objective
Increase Stock
TESLA Price by 20%
by the end of
What Happened? the year 2019
Tesla’s shares have been down by .
30% this year.
Reasons: Steps taken:
o slower production Tesla plans to raise its capital by
o late deliveries and $2 billion through acquiring new
o substandard customer service equity ($650M) and convertible
notes ($1.35B). In addition, Elon
Led to a loss $702 million
Musk intents to buy $10 million
worth of stock himself, i.e. 41 869
shares.
Current marketing strategies and performance
Zero-dollar strategy Social Media
A diverse social media presence with over 5 million
followers, along with a high frequency of posts and
engagement with audience.
Elon Musk plays an important role in the
company’s marketing strategy as he is a
recognizable face and active personality on
platforms.

Project Loveday Public Relations

Project Loveday was a video contest held

Tesla’s latest stunt involves sending a
by Tesla where brand enthusiasts got to
Tesla Roadster into the space which was
make commercials which highlighted the
the biggest publicity boost for Tesla.
benefits of owning a Tesla
 Communications Strategy
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OBJECTIVE:
Convey its messages in a unified voice to its key stakeholders and to improve brand awareness and customer
targeting.

Website and Social Media Sales Promotion

Most adverts and announcements, info Talk Shows, Test drive
scheme

Google Advertising Other Forms of Media

Ad words pick up key words for Newspapers, magazines, billboards
targeted market

Tesla has faced many lawsuits as such which has affected their brand image, thus it is crucial to be
mindful of communications that are made externally by any representative of the company.
PRICING STRATEGY
Structured Perceived Value Pricing
Strategy
Pricing Tesla vehicles based on brand
value, level of sophistication, product
differentiation and customers willingness
to pay

Implementation

Bring up prices back to usual rate stated

upon release of product. Eg: Price Tesla
Model S back to $93,000 from $85,000
price drop.
 Customer Relationship Management

ENHANCE CUSTOMER Collaborate with quality

Implementation
EXPERIENCE independent mechanic repair
shops, thereby decreasing
Tesla-Approved waiting times and increasing Connect with quality independent
Mechanic/Body customer service satisfaction.
dealers, distribute spare parts and provide
Shops
instruction manuals related to repairing
Right to Repair for the Tesla.
Customers

‘Do It Yourself’ enables Tesla Provide instruction manuals and how-to

owners to fix cars and allows guides to fix their Tesla, and provide
Tesla to free themselves of discounted spare parts for warranty-less
customer dissatisfaction with
long wait times in service center
users
issues in current phase.
 Distribution & Sales Strategy
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Online sales model: a cost cutting Partnership with a logistic
strategy company; International Car
Increased sales for the company as Operators
fewer including permits and laws to help distribute the large volume
restrictions in sales. of cars within Europe and China.

Gigafactory Shanghai Shipment of cars that are ready

vehicles will be produced and for delivery every 2 weeks
shipped from the factory itself This will reduce inventory-
throughout China resulting in waiting time and increase delivery
faster deliveries. times for customers.

On-Time Delivery Perfect Order

Customer Returns
to Commit Percentage
Product Strategy : Tesla Power Tanks
The battery would become a reservoir for large amounts of kinetic
energy (at high speeds) which can be either stored or drawn back out
as electrical energy

The ‘power tank’ would give Tesla a competitive advantage over the
competitors who are entering the electric vehicles market

First mover advantage and can tap into new target markets of
potential customers who enjoy long drives and were afraid to buy the
car due to the lack of mileage.

Gigafactory 3 in Shanghai would be the best place to implement this

model in the production line.
CONCLUSION
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