Tesla: Internal and External Assessment, PESTEL Analysis, Strategic Action Plan

Tesla 0
TESLA
Tesla Motors
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Tesla 1
Contents
Internal assessment..........................................................................................................................3
External assessment/Environmental Scan.......................................................................................3
PESTEL analysis.............................................................................................................................3
Political:...........................................................................................................................................3
Economic:........................................................................................................................................4
Social:..............................................................................................................................................4
Technological:.................................................................................................................................4
Environmental:................................................................................................................................4
Legal factors:...................................................................................................................................4
Perspective strategic action plan......................................................................................................5
PORTERS’ MODEL.......................................................................................................................5
Business rivalry:..............................................................................................................................5
Negotiating power of suppliers........................................................................................................5
Threats of newcomer:......................................................................................................................5
Ratio analysis...................................................................................................................................9
Recommendation.............................................................................................................................9
Bibliography..................................................................................................................................11

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Internal assessment
Tesla is an automotive company founded in 200, with revenue of $50 billion. Currently,
Tesla for all three models of Tesla cars produces power wall, battery modules, and power-pack
product. Currently, Tesla has a positive brand image because of the high demand for the
products as model 3 has a reservation of 32,500 in the first week of release. By launching the
Model X and Model S company providing cheaper options with the software limited battery
pack. Specifications of Model X and Model S are (Jeff, 2010).
Model X: This model has a price of $88,000 with a range of 270-miles. Model X can be
travel 0-60 mph: 4.1 sec.
Model S: Model S has a price of $85000 with a range of 310-miles. Model S can be travel 0-
60mph: 4.7 sec.
External assessment/Environmental Scan
The trend of environment-friendly, transforming of electric cars is far-reaching through
the industry. As per the US Department of Energy, electric engines transform on ordinary
59% to 62% of the power put in storage to the power of wheels while ICE (Internal
combustion engine) only transform 17% to 21% of the energy. Major competitors of Tesla
are Ford and General Motors who concentrating on the electric vehicle market due to the
trend of environment-friendly. Tesla has more experience in the production and assembly of
products. In reference to the foreign market, Tesla has a good performance record in the US
market and earns 45% revenue from Model S and Model X. The company is planning to
open the factory in the chin to increase the electric vehicle market share in China (Hwee,
2015).
PESTEL analysis
The PESTEL analysis is a vital administration tool that defines the macro environment of
the company. (Bharwani, 2012)

Tesla 3
Political: According to the current situation, nowadays government taking steps to
enhance economic conditions by supporting technological innovation in that case Tesla has
an opportunity to use government incentives for revolution, environmentally friendly
products, and sustainability. Political factors directly relate to the reduced carbon emissions
of the company’s procedures and products. PESTLE analysis helps the company increasing
free trade agreements and has an opportunity to expand its operations
Economic: There are certain economic factors that have a significant effect on the
company:
1. Lower battery costs
2. Lower cost of renewable energy
3. Economic stability issues
Lower battery costs give performance benefits to Tesla. For example, decreasing
battery costs translates to the sustainability of the automobile products in company.
Fall in the costs of renewable energy makes the products of the company more
attractive.
Social: Progressively trend of low-carbon lifestyles provide the company growth
opportunity and expand more operations. The increasing trend of renewable energy helps the
company to boost up the financial performance in the market. Better wealth distribution in
emerging markets leads to an increase in the number of potential buyers in the company.
Technological: Increase in the technology of automotive technology, gives the
opportunity to Tesla to increase its product’s technology. The increased rate of automation in
the business leads the company towards growth and development. The increasing trend of
online mobile network should adopt by the company in the integrated system of its
automobiles. Technological enhancement led the company towards better performance.
Environmental: Ecological factors have significant forces on the company such as
climate change, increasing environmental programs, growing principles on waste disposal.
Tesla‘s solar panels and electric vehicles are measured as a suitable way to address business
sustainability and ecologically friendly products.