Tesla vs Ford: A Financial Performance Analysis & Strategic Review

This report provides a critical analysis of Tesla and Ford's financial performance, examining their strategic approaches and market positions from 2019 to 2021. It assesses the macro environment using PESTLE analysis, evaluates Tesla's market position through SWOT analysis, and compares marketing strategies using the Ansoff Matrix. The analysis focuses on key financial ratios to determine the monetary performance of both companies, highlighting strategic options and areas for improvement. The research aims to identify gaps and provide summative information to enhance Tesla's performance, with a strong emphasis on market penetration and sustainable growth strategies. Desklib offers a wide range of similar solved assignments and past papers for students.

A Critical Analysis

Contents
INTRODUCTION...........................................................................................................................3
Research Objectives.........................................................................................................................4
Current Strategies Followed by the Organisation............................................................................4
REFERENCES................................................................................................................................6

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 Jiangling 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. 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. 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. 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 its 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.

REFERENCES
Books and Journals
About Tesla, 2022. [Online] Available through <https://www.tesla.com/about>
Ford History, 2020 [Online] Available through <https://corporate.ford.com/about/history.html>