PESTLE Analysis of Tesla in Global Market: Marketing and Management 1

This report provides a PESTLE analysis of Tesla Motors, examining the political, economic, social, technological, legal, and environmental factors influencing its business. The analysis highlights challenges such as changing political scenarios, economic slowdowns, evolving social preferences, rapid technological advancements, stringent legal requirements, and increasing environmental concerns, particularly regarding carbon emissions. It emphasizes the importance for Tesla to adapt to these factors to maintain competitiveness in the global market, especially with the growing demand for eco-friendly vehicles. Desklib offers a variety of resources, including past papers and solved assignments, to aid students in understanding similar business analyses.

Marketing and Management

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Macro environment Analysis
In the global competitive market, it is essential for every organisation to understand the
environment that is changing all around the world. There are several factors that affect the
business of Tesla as well which can be understood with the help of PESTLE model.
PESTLE analysis of Tesla
 Political: The political scenarios all around the world has changed. This has the great
effect on the trade between two nations. In the automobile sector which is highly
dependent on the imports and exports, this is a serious challenge (Mangram, 2012).
Increasing tax barriers and the changing norms of the government all around the
world has increased the problems for the company.
 Economic: There are lot of hiccups that can be noticed in the economy of various
parts of the world. Since automobile industry is a major contributor to the GDP of
various nations hence they are highly influenced by the economic scenarios. The
slowdown in the economies of two major markets like Europe and America has led to
difficult situations for the automobile companies. In these conditions expanding
markets can be a difficult job for the Tesla. The increasing inflation and the price rise
in the petroleum products has become one of the biggest challenges for the
companies.
 Social: Society has changed tremendously in the past few decades. This has made
greater impacts on the performance of automobile industry. People are loving
automobiles that are innovative and designed as per their requirement. With the price
wars going on among the major players in the industry, it has become difficult for the
companies like Tesla to ensure high rates of profits. For fulfilling people’s demand
company need to invest a whole lot of money on the market research as well as
producing products that are innovative.
 Technology: The technology has changed in the automobile industry. The products of
this sector have gone automated. With Tesla been innovative, they spend a whole lot
of money on the research and development works. The race towards automations has
pushed the research into new levels. This has also attracted the IT giants like Google
to come into the automobile market. Tesla has done huge progress in the driverless

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cars which can be beneficial for them in the future (Hardman, Shiu and Steinberger-
Wilckens, 2015).
 Legal: Legalities have changed all around the world especially related to environment
concerns. Any company breaching it might face serious challenges. Along with this
the consumer laws have also strengthened in many parts of the world which has
changed the global working scenarios of most of the companies.
 Environmental: This is one of the biggest challenges what Tesla is facing. This is due
to the reason that carbon emission related regulations have strengthened in many parts
of the world. Tesla needs to think very closely over this matter so as to ensure that
they do not face any challenge. The things that Volkswagen faced in the American
courts can be disastrous for Tesla. In the coming years there is an increasing demand
towards bring products that are eco-friendly like the ones that runs on electric powers.
Tesla needs to be ready for this so as to remain in the competition.

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REFERENCES
Mangram, M.E., (2012) The globalization of Tesla Motors: a strategic marketing plan
analysis. Journal of Strategic Marketing, 20(4), pp.289-312.
Hardman, S., Shiu, E. and Steinberger-Wilckens, R., (2015) Changing the fate of Fuel Cell
Vehicles: Can lessons be learnt from Tesla Motors?. international journal of hydrogen
energy, 40(4), pp.1625-1638.