Tesla Task Environment Competitive Factors

Tesla operates mostly in the market environment of electric cars, facing competition based on clean energy, effectiveness, and low-cost alternatives. This article discusses Tesla's competitive advantage and its direct and indirect competitors.

Running head: TESLA TASK ENVIRONMENT COMPETITIVE FACTORS
TESLA TASK ENVIRONMENT COMPETITIVE FACTORS
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1TESLA TASK ENVIRONMENT COMPETITIVE FACTORS
Tesla operates mostly in the market environment of electric cars. The market is
dominated by the competitive factors that emerge from cars running on clean energy,
effectiveness of functional attributes of the cars and provision of low cost alternative vehicular
solutions. Tesla is operating in an environment where the competitive advantage of any
organization is determined through the most effective innovative solution that it provides to its
customers. The most important factors are battery performance, cost of maintenance, energy
usage and all round vehicle performance. However, tesla have other wide ranging businesses as
well that might not be related to automobiles but dependent on non-conventional energy sources.
Tesla is soon going to manufacture automobiles with battery costs of less than 100 dollars
per kWh annually (Tesla 2019). Most other competitors are not close to the mark. This is an
essential advantage for the company. General Motors is one of the indirect competitors of the
organization. The organization is one of the largest manufacturers of traditional automobiles. The
automobiles manufactured by GM currently provide better performance than the electric cars but
has much higher maintenance costs. This is an effective advantage that is gained by Tesla over
these indirect competitors. Tesla has come up with cheap engine solutions that would boost the
battery performance of its cars. Electric vehicles of Tesla are also much more cost efficient if the
fuel costs of GM vehicles are considered (GM Joins Tesla, Ford In Building EV Pickups 2019).
One of the direct competitors of the company are Chevrolet. One of the most important
electric cars of Chevrolet is the Bolt EV ("2019 Bolt EV Electric Car: An Affordable All-Electric
Car" 2019). The Tesla S 75D provides marginally better performance over the Bolt EV.
Additionally, the auto pilot facility is much better for Tesla. Competitive advantage is gained by
Tesla increasing number of charging stations across the globe (Foley 2016). Chevrolet and other
competitors do not have these many charging stations. The supercharger network of the

2TESLA TASK ENVIRONMENT COMPETITIVE FACTORS
organization is being expanded across the globe. This is a facility that very few other competitors
are offering. That too on a much lower scale. Another significant competitive advantage of
Tesla comes from the fact that it collects customers’ on road data to analyze the problems with
its cars. The larger battery power is a significant factor that guides the efficiency of Tesla
(www.inverse.com 2019). The organization thus takes a stance of continuously improving its
product offerings. Competitors like Chevrolet do not have data collection devices on the vehicles
to record engine performance, car health and other important aspects. This provides a significant
competitive edge to Tesla and improves the future prospects of the organization.

3TESLA TASK ENVIRONMENT COMPETITIVE FACTORS
References
"2019 Bolt EV Electric Car: An Affordable All-Electric Car". 2019. Chevrolet.Com.
https://www.chevrolet.com/electric/bolt-ev-electric-car.
"A $250K Tesla? Three Factors That Support Elon Musk's Spectacular Claim". 2019. Inverse.
https://www.inverse.com/article/55483-teslas-worth-250k-in-3-years-claim.
"GM Joins Tesla, Ford In Building EV Pickups — But Texas Ranchers Don't Want A 'Playboy's
Truck'". 2019. CNBC. https://www.cnbc.com/2019/05/03/gm-tesla-ford-race-to-build-ev-
pickups-texas-ranchers-dont-want.html.
Electric Cars, Solar Panels & Clean Energy Storage | Tesla. (2019). Retrieved from
https://www.tesla.com/
Foley, Jeffrey. "Shared Value and Competitive Advantage: A Tesla Motors Case Study." (2016).
Wolf, Ingo, Tobias Schröder, Jochen Neumann, and Gerhard de Haan. "Changing minds about
electric cars: An empirically grounded agent-based modeling approach." Technological
forecasting and social change 94 (2015): 269-285.