A Critical Analysis of Teslas Business and Financial Performance With Ford Motors 2019 to 2021

A Critical Analysis of
Teslas Business and
Financial Performance
with Ford Motors 2019
to 2021

Contents
INTRODUCTION...........................................................................................................................3
RESEARCH OBJECTIVES............................................................................................................4
CURRENT STRATEGIES FOLLOWED BY THE ORGANISATION........................................4
LITERATURE REVIEW USING ESTABLISHED MODELS......................................................5
RESEARCH METHODOLOGY.....................................................................................................9
ANALYSIS....................................................................................................................................10
SWOT..................................................................................................................................10
PESTLE...............................................................................................................................11
FOUR Ps MARKETING MIX..........................................................................................13
ANSOFF MATRIX............................................................................................................14
RATIO ANALYSIS............................................................................................................15
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
The business and the monetary performance of any organisation can be determined by the
help of the financial statement that are prepared by every listed and non – listed company. It
helps in measuring the quantifiable information and the standing of the firm in the industry.
Tesla is an American multinational company with headquarters in Austin Texas. It is an electric
vehicle and clean energy organisation. The company mainly creates and produces electric cars,
solar panels, battery energy storage from home to grid-scale, solar roof tiles and many other
products related to it. The company regards as the most valuable company throughout the world
and remains the most valuable automaker in the entire world. The company founded in July,
2003 as Tesla Motors (About Tesla, 2022).
Ford Motor Company is commonly names as Ford. It is also an American brand in car
manufacturing industry. It has its headquarter in Dearborn, Michigan, United States. The founder
Henry Ford announced the company in the year 1903. This automobile company specialises in
selling automobile and commercial goods under the name of Ford. The company owns several
other brands such as Brazilian SUV and Jangling Motors. It has created joint ventures in various
countries such as Chine, Turkey, Thailand and Russia. Ford is known as the second-largest US
based automobile company and fifth in the entire world, behind Volkswagen, Toyota, Hyundai
and more (Ford History, 2020).
The comparative analysis of the two companies is done to identify the monetary
performance and the operating results of in the financial year. It can be judged by evaluating the
annual report and the data information of the company which is utilised for making the
significant differences. The several choices are to be made by the company to ensure that the
decision making process in effectively completed.
The report prepared from collected information gives an idea about the research
objectives and questions which are useful for company’s long life cycle. It helps to have an
explanatory research and design which would be helpful to understand working of company with
a better view. It also serves as a guide to understand analysis and describe the reason behind
events taking place in carrying out operations related to company. It gives a better understanding
to people who are connected with company both internal as well as external users which
contribute to growth and expansion of business. It helps to evaluate that the data provided by the
company is accurate, reliable, reasonable or not. The report is helpful for choosing from best

alternatives available in case of methods applicable I.e. which must be helpful and will serve best
results. It helps to evaluate best hypothesis which would be helpful for the company to be
applied. These are of two types Null and alternate which helps to choose which would be more
effective and efficient policy which can be implemented. This reports helps to build a
competitive advantage in market against other companies as well (Conlon and Ford, 2022). It
helps to find out what could be done, when could be done and which would be the best path for
reaching goals and fulfilling aims wished for. This report gives an idea where the company is
lacking and where it lagging behind which would not only increase its speed towards success but
help to utilise its resources in other areas which would result more beneficial. It can also be
considered as a guide providing solutions for unnecessary issues and problems which can be
easily dealt with in no time.
RESEARCH OBJECTIVES
The main of the research is to gives the summative information and the gap which can be
addressed for fulfilling the performance of Tesla. It will involve the strategic analysis and
evaluation that will involve the skills that need to be displayed by the relevant models and
theory’s in the paper (Gautam, Verma, and Srivastava, 2019). For this the comparative analysis
of the performance of the firm is done.
The objectives of the paper are:
1. To assess the macro environment by undertaking a Pestle analysis.
2. To assess the current position of Tesla in the market by undertaking the SWOT.
3. To analyse the strategy and the models of marketing that are used by Tesla in the
comparison of Ford Motors.
4. To analyse the strategic options followed by Tesla by undertaking a Ansoff Matrix
analysis of Tesla.
5. The evaluate the monetary performance of the Tesla against Ford Motors from the 2
years from 2019 to 2021 analysis on the basis of the fiscal ratios.
CURRENT STRATEGIES FOLLOWED BY THE ORGANISATION
The research about the company suggests that the large emphasis of the organisation is
on the market penetration strategy by developing the aim of gaining sustainability in the market
for increasing the customer satisfaction. Its main aim is to apply the strategy of intensive growth

which can enable the firm to elevate the revenue in the current market of the company. The Tesla
owns the market share of around 18 % in the industry which signifies in leadership position in
the market (Ogunbameru, Adeloye, and Oyebode, 2019). It gives a brief understanding about the
consumers’ needs and encourages the executive of the organisation to create some innovation in
its products and also aims at increasing the supply distribution channel.
The company Ford Motors Uses the generic strategy it’s in marketing models which emphasises
ion the competitive advantage of the firm. It helps the company to maintain the costs leadership
in the market which attracts more customers. It enables the company to enforce the international
growth of the company and helps in gaining the distinctive competencies in the market.
LITERATURE REVIEW USING ESTABLISHED MODELS
 Assess the macro environment by undertaking a Pestle analysis:
According to Daniel Kissinger, Pestle analysis is the tool used in analysing macro
environment factors that affects organisations performance. Tesla Plc. needs to overcome
challenges which are connected to external factors explained in Pestle. Their case involved
macro environment of Automobile sector, energy generation industry as these factors directly
influence other business determinants such as Tesla customer base directly depends upon the
cost effectiveness they got in technology and logistic sector. In order to maintain growth and
success they need to formulate their strategic decisions considering Pestle Analysis. Political
factors by way of government incentives to Electric vehicle, International global trade
agreements with other countries, Political stability in maximum market etc. reflects the
opportunity they got to strengthen their business. Decrease in cost of Battery, Renewable energy
cost etc. are the opportunity they got as economic factor, however stability issues in economy
created a threat for them. Preferences towards low carbon lifestyle, usage of renewable energy
product etc. are opportunities they must encash in social factors (Boldrini, and et.al., 2021).
There is a rapid technological change that creates threat for them. However, Tesla gets an
opportunity of increased automation in business with awareness towards online mobile system.
Ecological factors with respect to change in climate, program relating to expanding environment
etc. are certain opportunity that exist for Tesla. Dealership regulations in Unites States create
threat and Opportunity whereas rules and regulation towards energy consumption, global
protection of intangibles safeguard Tesla so that they lead the market. Tesla Pestle Analysis,
(2019)