Tesla Swot Analysis

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Date Submitted: 02/21/2016 03:47 PM

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Tesla Motor is an American automotive and energy storage company that manufactures and sells its own designs of luxury electric vehicles and battery products. In 2010, Tesla Motors went public on the NASDAQ stock exchange under the name of TSLA. Its’ first car product of Tesla Roadster gained a widespread attention from the world. The Model S followed was the world's best-selling plug-in electric vehicle in 2015. To get a better understanding on the complex competitive landscape Tesla faces today, here's a look at Tesla's strength, weaknesses, opportunities, and threats.

Strength

Tesla's greatest strength is undoubtedly its execution and its management team. Tesla although has broken several promises and postponed to launch Model X multiple times, the company succeeded against all odds. Since 2014, Model S vehicle sales are growing about 50% annually. With the money, Tesla invested carefully and with vision. Tesla's invested another 5 billion dollars into factory and manufacture plants to begin cell and pack production next year. Last year, Tesla successfully launched an upgraded Model S with dual-motor all-wheel drive version which significantly improved the attractiveness of the vehicle and drove dramatic amount of sales. With good performance, investors and stockholders have great expectations and confidence while Tesla paving the way for the all-wheel drive technology to be used in Model X. Tesla follow the trend of energy business and introduced an entirely new business, Tesla Energy, after piloting energy storage solutions for a few hundred Solar City customers. Tesla has rapidly expanded its Supercharger locations, all across from the west coast to the east coast. Currently launched to worldwide and Superchargers increased fivefold in 2014 and are on pace to double in 2015.

Weakness

Due to rapid expansion, Tesla is burning lots of cash. Company invested heavily into plants and factories and other businesses, shareholders have concerns. The company's...