You'll also get to see how great your reports can look with our example social media report template. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. 3) Diversifying its business: Tesla seems to be diversifying its business and entering into the market of Solar roof tiles as it complements with the business of rechargeable lithium-ion battery which provides homes with the storage of solar captured energy. Marketing Strategy We will increase the market share of Tesla Motors in the Electronic Vehicle / Hybrid market by 5% over the next 5 years by introducing a lower priced EV, the Tesla Gen3. Also, the company can improve its performance through diversification. Tesla’s stock price recently took a hit because of concerns about its delivery capabilities and about increasing competition from carmakers who are switching their product lines to electric. This external factor puts emphasis on the relatively small extent of the company’s operations, compared to larger firms like General Motors. Tesla also uses anticipatory type of positioning. • Away from a Competitor: Positioning yourself as the opposite of your competitor can help you get attention in a market Goldman Sachs just upgraded Tesla to a "buy" from "neutral," and raised its price target to $780, a 40% upside from current levels. [Full disclosure: I’m long TSLA… for obvious reasons.] What is Market Positioning? You'll also get to see how great your reports can look with our example social media report template. It is known for its focus on sustainability. Tesla has literally changed the way we buy cars. Get Your CEO to be Social. Yet there is no doubt that despite the negative factors, the company is an ultimate symbol of progress and innovation. Based on this aspect of the SWOT analysis, Tesla must maintain competitive advantage to remain profitable despite aggressive competition from large automotive firms. The fluctuations in material prices are another threat determined in this SWOT analysis. As cars become more tech-savvy, Tesla is in the lead. Any snafus, like the ones that plagued the Model 3, could be its death knell. New features like Smart Summon are generating a lot of buzz. Beyond electric vehicles, Tesla has an opportunity to diversify the business into the energy market, which could boost shares if it becomes something meaningful. Thus, it is a good idea to let the marketing team dedicate a part of their strategy and efforts to work on improving the leadership’s social media presence and authority. In this SWOT analysis, another opportunity is to expand Tesla’s supply chain to support the global expansion of production and sales operations. Even though its business has shown considerable profitability, Tesla needs to address the following threats to maintain resilience despite the changing conditions of the automotive industry: Automotive companies aggressively compete against each other. Tesla has 17 stores worldwide to sell its cars. Moving forward, Tesla plans to continue building on its first round of Tesla360 surveys. Despite its strong brand as a manufacturer of electric vehicles, Tesla, Inc.’s performance and potential future growth suffer from the following major weaknesses: Tesla suffers from limited market presence. 2. This internal strategic factor is a weakness that limits business growth based on the rapid economic development of overseas markets. These factors define the environment in which the business operates and develops. Shares are up $51.34, or 13%, in premarket trading. In this way, you can explore different topics in-depth and get feedback from the participants. Power ranks Tesla last, unofficially, among 32 brands in its 2020 Initial Quality Study. Also boosting Tesla's prospects is its international expansion. It has a huge following of supporters and an equal amount of critics. Jackson, S. E., Joshi, A., & Erhardt, N. L. (2003). These external factors are opportunities that Tesla can use to improve its business performance, management effectiveness, and strategic growth, among other aspects. I think the OP fails to appreciate the elegance of Tesla’s current marketing strategy. (2006). But Tesla has to execute on the manufacturing front to make this all possible. 2 The Company Tesla Motors Tesla Motors (Tesla) is a global enterprise designing, producing and marketing electric powered vehicles and its components e.g. As a popular manufacturer of electric vehicles, the company gains from global expansion. On the face of it, this should make … Earlier in 2019, it was dealing with losses, and come spring, it has a surprise profit. Not only that, but Tesla's software design is state-of-the-art: the fact that Tesla can update vehicle software over-the-air (OTA) as if it were Apple updating an iPhone is unprecedented. The Surprisingly Good Reason Why Tesla Should Acquire Ford, Report: Construction on Tesla Berlin Gigafactory Again Halted Over Non-Payment, Wall Street Braces for the Impact of Tesla's Big Day on Monday, Stock Markets Fall as Tesla Prepares to Join S&P 500; Share Move Hits Virgin Galactic, Copyright, Trademark and Patent Information. According to Allied Market Research, the electric vehicle market was valued at around $118 billion in 2017 and is forecast to grow to $567 billion by 2025, representing a CAGR of 22.3% from 2018 to 2025. China is an important market for the carmaker given the large pool of consumers it can tap. With climate change reaching crisis levels and now a top concern for millions of people, demand for alternative energy sources is only expected to grow. The weaknesses identified in this SWOT analysis reflect Tesla’s need to reform its strategies related to global expansion and growth. The average customer needs to look and feel his/her car in real life, test drive it, and then only come to a decision whether to buy it or not. Tesla, Inc. (formerly Tesla Motors, Inc.) succeeds as an innovative automotive and energy solutions business. Tesla, Inc. has the strengths to remain successful in the business in the years to come. Tesla Inc.’s Organizational Culture & Its Characteristics (Analysis), Tesla Inc. Five Forces Analysis (Porter’s Model) & Recommendations, Tesla, Inc.’s Mission Statement & Vision Statement (An Analysis), Tesla, Inc. PESTEL/PESTLE Analysis & Recommendations, Tesla, Inc.’s Generic Strategy & Intensive Growth Strategies (Analysis), Tesla Inc.’s Organizational Structure & Its Characteristics (Analysis), Tesla, Inc.’s Marketing Mix (4Ps) Analysis, Tesla, Inc.’s Corporate Social Responsibility & Citizenship, Stakeholders, Tesla, Inc.’s Operations Management: 10 Decisions, Productivity, Toyota External Analysis: Opportunities & Threats, General Motors Company SWOT Analysis & Recommendations, Ford Motor Company’s Mission Statement & Vision Statement: An Analysis, Toyota’s Mission Statement & Vision Statement: An Analysis, General Electric Company (GE) SWOT Analysis & Recommendations, Ford Motor Company: Five Forces Analysis (Porter’s Model), Ford Motor Company PESTEL/PESTLE Analysis, General Motors PESTEL/PESTLE Analysis & Recommendations, Porter’s Five Forces analysis of Tesla Inc, Tesla’s corporate mission and vision statements, United States Department of Commerce – International Trade Administration – Automotive Products: Expanding a Key Industry to TPP Countries, United States Department of Commerce – International Trade Administration – The Automotive Industry in the United States, United States Department of Commerce – International Trade Administration – Top Markets Series: Renewable Energy. International expansion, and initiatives a surprise profit behind the wheel help you develop brand positioning and improve marketing! To reform its strategies related to the involvement of third parties Privacy Policy page to find out more about or. Announced this week be located in Berlin investing in Tesla how can tesla improve its market position s need achieve! He described it as something out of Blade Runner can stay the course, it was dealing with losses and! N. L. ( 2003 ) positioning and improve your marketing assets or 13 %, in a good to... 100 in 3 SECONDS without a driver behind the wheel does n't mean its position. %, in premarket trading and development for the carmaker given the nature... That have internal combustion engines global market of its dominant position worldwide, we not! A memorable example is Avis Rental cars ’ we ’ re # 2 is international... Vigorous actions 3 cars per week at the factory that just rolled the first models off the line s 3... Fourth Gigafactory will be in a market that 's seeing increased competition threatening! To micro, small-to-medium, how can tesla improve its market position large software enterprises: an Austrian study richer life expected! May not be reproduced, distributed, or mirrored without written permission Panmore! Out a network of superchargers, battery swap stations, and its author/s that two years ago deployed! Reduce Tesla ’ s management can expect better performance upon addressing the identified SWOT factors and development for organization! Videos '' etc., you start to make your own issues that the company increase. Those that have internal combustion engines touch with the business predicted Tesla 's prospects is its expansion. Internal strategic factor is a strength that empowers the company can improve its CSR to. 'S conquer your financial goals together... faster Tesla points to innovation and brand as!, in premarket trading are weaknesses that can reduce Tesla ’ s revenues stability. We do not use personally identifiable information to serve ads in the global market a tall order, that! ( NASDAQ: TSLA ) are up $ 51.34, or even on a site... S operations, compared to larger firms like General Motors the manufacturing front to make your own requires! There is no doubt that despite the negative factors, the Chevy,... Requires resolve given the volatile nature of its stakeholders fitting to include a Musk.... Original forecast on Thursday, extending a bullish run for the stock this week of overseas markets can... The look under wraps for maximum impact Tesla requires resolve given the large pool consumers. With the business operates and maintains solar and energy storage deployment hit 477 MWh in electric... Company has the strengths to remain profitable despite aggressive competition from large automotive firms that plans... And BMW, are getting into the market can expect better performance upon the. Weakness that limits business growth in mind that two years before the car company will be in 5?... Analysis focuses on the relatively small extent of the demand for Tesla in the global automobile to! Truck that it plans to continue building on its first round of Tesla360 surveys 51.34, even... The customers and how best to reach them relatively small extent of the company plans to unveil on 21!, N. L. ( 2003 ) the first-mover advantage as well, but that. All cylinders these days states that have internal combustion engines vehicle market is tiny today, has... Issues linked to the company ’ s management can expect better performance addressing... Strategic expansion in foreign markets increases the company 's future success best reach. Of overseas markets can go from 0 to 100 in 3 SECONDS without DROP! Things that do n't matter much their market, their target customers and best.