USA Market Analysis of Tesla: Sales, Issues & Recommendations

This report provides a marketing analysis of Tesla in the USA, focusing on the electric car market. It includes both qualitative and quantitative analysis, comparing Tesla's sales with competitors like BMW, Mercedes-Benz, and Cadillac, particularly regarding autopilot features. The report examines issues such as vehicle recalls and accidents, and provides recommendations for Tesla to improve its sales and market position, emphasizing the importance of feasibility studies and strategic marketing mix adjustments for sustainable growth in the international market. It also touches upon the importance of analyzing macro and micro environmental factors for Tesla's business growth.

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Marketing analysis to Tesla (Cars)
This market analysis is aimed at recommending Tesla motors to be the best suitable in the
global market. The company manufactures electric cars which were started in 2003. In the
international market, Tesla has around 17 stores, and it has plans to enter in the same market
with a strategy of online selling. In addition, it is very crucial for it to have physical stores in the
international market for the purpose of promoting and ensuring growth. In the report, it is
suggesting the most suitable global market and also marketing mix which are efficient in order to
enter the market through physical stores.
In recent, the analysis of internal and external market forces has become a very vital
factor for marketers because these factors are affecting the growth of business for many
organizations. Since there is very stiff competition in the market, Tesla Company needs to carry
out efficient analysis of the market for the purpose of knowing the macro and micro factors that
are going to affect the company’s business growth. For the purpose of understanding these
market forces impacts to Tesla manufacturer; these are the macro and micro analysis of the
automobile industry.
These are the six macro environment factors (PESTLE) which may affect Tesla business
growth either positively or negatively: political, social, economic, legal, technological and
environmental.
Considering these factors like the political stability of the targeted country is very
important for Tesla manufacturer in order to be able to conduct business in the global market
since it needs to comply with the government’s imposed set of legislation and policies. For
instance, the electric car manufacturer should ensure minimum energy efficiency and offer
efficient safety features. Since electric cars are expensive, it is important to put into consideration
all these macro environment forces since they affect and influence the consumers’ buying power,
decision-making process and buying behavior.
Also, Tesla manufacturer should conduct microanalysis which helps in identifying the
strengths and weaknesses, opportunities and threats in the automobile industry. Therefore it is
important for the electric vehicle manufacturer to carry out the internal analysis of Tesla firm
through a SWOT analysis of the industry.
It is very important for Tesla motors to do an in-depth evaluation of different markets
especially in the potential countries, from every aspect based on products demand and also
market competition before making a final decision in order to ensure sustainable development.
On a different score, for the purpose of gaining superiority in the global market, it is
highly crucial for Tesla to frame its marketing strategy by having an appropriate marketing mix.
Quantitative and qualitative analysis of the market for Tesla vehicles
Qualitative Analysis: Many businesses tend to employ cost leadership strategy which is
usually aimed at creating a low operation cost within their marketing niche. The primary purpose

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of using this strategy is aimed at gaining an advantage over the competitors by reduction of costs
of operation below those of the others in the same industry. From this strategy perspective, Tesla
motors don’t employ this strategy. Hence it has been losing money in its operations, which in
turn has limited and affected its vision and overall goals.
Quantitative Analysis: As per the statistics, they show that Tesla Company has been
operating on a net loss since the fiscal year of 2008 to 2015. Issues of supply chain management
have limited the ability of Tesla to produce vehicles. Due to dealing with suppliers who operate
in adjacent countries or overseas has led to the increased impact of shipments delay, poor quality
and/or unmet specifications on their production. It needs to develop infrastructure for repair,
recycle and recharge which currently is limited and not that cheap. Recalling of the vehicles and
other problems has contributed to the issue of reliability of Tesla Motors especially in advancing
its new and found success. (Aboussou, 2016)
Tesla electric car-maker globally has produced and delivered 143,740 vehicles by the
second quarter of 2018. Recently, Tesla has different model ranges which are Tesla Model S,
Tesla Model X, Tesla Model 3, and also planned Tesla Semi and Roadster models.
Nowadays, Tesla is one of the best car selling brands compared to other brands especially
the premium ones. Its sales were recently boosted by Tesla Model 3.
Here is the list of selected brands with autopilot for comparison (As in August 2018):
 Tesla- 23,175
 BMW- 23,789
 Mercedes-Benz- 20,339
 Cadillac- 22,784
Right now in the car market, Tesla Autopilot and Cadillac Super Cruise have the best semi-self-
driving features.
Tesla has voluntarily recalled around 123,000 of its Model S luxury sedan vehicles to fix a
power-steering problem/issue. Also, it’s around 2 cars which have been involved in a
crash/accident. (Bhuiyan, 2018)
Recommendation
It is very important for Tesla Motors to conduct a feasibility study while venturing and entering
the international market, especially its potential targeted countries. This will make them remain
relevant in the automobile industry, gaining a competitive advantage against its rivals and also
establishing a significant and sustainable business growth.

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References
Aboussou, N. (2016). Tesla Strategy recommendations Report. Strategy Project, 6-14.
Bhuiyan, J. (2018). Tesla's latest Autopilot crash is just one of many problems it is now dealing with. 5-9.
Kane, M. (2018). Tesla Outsold All of These Brands in the U.S. in August. 3-7.