Tesla SWOT Analysis

                                                                               Tesla SWOT Analysis:

SAWAT - identifying internal strengths (S), and weaknesses (W) and also examining external opportunities
(O) and threats (T)

Strength:

1. They developed 1^st fully electric sports car “The Roadster”

2. Also a strong supplier to other manufacturers like Toyota
3. Strong technological expertise in the area of electric transmissions & drive train
4. Ability to  develop vehicles completely in house including the sub-assemblies required

5. Their current platform developed for Model S has the ability to be used for their future crossover model or any other model they envision

Weakness:

1.Since they fully develop the vehicles including their sub-assemblies this leads to higher costs of production as economies of scale are not achieved
2.The prices of their products are higher than their competitors who sell combustion engine powered vehicles

Opportunity:

1. The growing support by governments across the globe for environmentally friendly vehicles in form of exemptions from duties & other support
2.Supports the Mercedes’ Smart car, which can lead to learning which will help them with their passenger cars which they plan to launch in near future
3.Improvements in the quality control processes can reduce these costs drastically

Threats:

1. Tesla wants to be able to produce, distribute & sell its cars to average which seems difficult to achieve due to their current business model
2. Their strategy for pricing (skimming) has not been used so far in the auto industry
3. They are currently competing against a technology which has been in use for over hundred years i.e. the combustion engines& also their technology may take time for being optimal for use of masses