For example services like Dropbox and Google Drive are substitute to storage hardware drives. As of 2014, Tesla’s current ratio is 1.52 and cash ratio is 0.9. As well as their strengths and weaknesses in the industry. 2) Tesla is competing globally in the automotive industry; it is more selective regarding the market not like other competitors since it is only producing full electronic cars. Would they like to expand their powertrain electrical components? Additionally, Tesla should consider working with companies that would provide a synergistic relationship. Tesla should note the primary locations in which its cars are being sold to. This will be helpful in two ways. Tesla sells electric luxury cars, automotive components, rechargeable energy storage systems. Tesla employs digitized powertrain system whereby the torque to the front and rear wheels are instantaneously … Tesla’s shareholder equity has been steadily increasing from $207,048 in 2010 to $911,710 in 2014. Ultimately, the reduction in return on equity between 2012 and 2013 resulted from the reduction in net profit margin, more specifically the sustained net loss of income (See Table 4). Tesla PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. There is more competition, however, now entering the higher-end electric and self-driving car market. Tesla, Inc. Porter Five Forces & Industry Analysis, Ken Private Limited: Digitization Project case study solution, Microsoft Goes Online: MSN--1998 case study solution, IPremier Co. (C): Denial of Service Attack case study solution, British Motorcycle Industry at a Crossroads, Chinese Version case study solution, Tootsie Roll Industries, Inc. Porter Five Forces Analysis, Tempur Sealy International, Inc. Porter Five Forces Analysis, Turning Point Brands, Inc. Porter Five Forces Analysis, Tower International, Inc. Porter Five Forces Analysis, Tyson Foods, Inc. Porter Five Forces Analysis, Tata Motors Limited Porter Five Forces Analysis, Tupperware Brands Corporation Porter Five Forces Analysis, Travelport Worldwide Limited Porter Five Forces Analysis, Hostess Brands, Inc. Porter Five Forces Analysis. Other companies would have to innovate on a level beyond that of Tesla and produce a product that is significantly superior in order to be an acceptable substitute. Amazing Business Data Maps. Tesla PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Other competitors will also by vying to earn market share within the electric vehicle industry. . The bargaining power of the buyers is moderately low. The “Secret Master Plan” implemented by Tesla helped develop and fund the necessary R&D to develop the Tesla vehicles but the inefficiencies in supply chain process resulted in the company to incur massive production costs that limited profits. The aim of this market analysis is to recommend Tesla Motors the best suit international market. If Tesla continues to incur sustain net income losses, then shareholders and debt financers will eventually lose confidence in the company. The most significant change in current ratio was between 2012 to 2013 in which the current ratio increased from 0.97 to 1.88. This seems to be backed by a survey from Bloomberg that shows that most buyers traded in vehicles in the price range between US $20,000 – 40,000 (vs. average Model 3 selling price of US $50,528). The unique aspect Tesla has gained, is the fact that the company produces its very own proprietary lithium-ion batteries with a range of more than 200 miles per charge. Political factors: You could qualify for tax credits when buying a Tesla vehicle. Tesla’s cost of goods sold continue to increase from $142,647 in 2011 to $2.3 million in 2014 while the company’s gross profits also continue to increase from $61,595 in 2011 to $881,671 in 2014. Tesla should also consider the major and minor cities that would receive the most benefit by having a Supercharger station. When Tesla launched the Model S in 2012, its revenues increased significantly each year following the launch. Tesla’s current business model has relied heavily on the its “Secret Master Plan”, which was unveiled in 2006. All rights reserved. A 360-degree analysis of Tesla's business in 2020.In 2020, Tesla is at cross roads. Tesla’s Background Fundamentals. By innovating new products and services. This PESTLE analysis of Tesla Inc. contains major findings about the company. Tesla Inc. Tesla, Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. Political. As a result of limited suppliers, Tesla became less selective with its choices of suppliers, often having to pay certain suppliers more than others due to minimal competition. See Tesla, Inc. (TSLA) stock analyst estimates, including earnings and revenue, EPS, upgrades and downgrades. The second step is to determine the most likely major and minor US cities that would benefit by having a Supercharger station. Tesla’s Market Return Correlations vs The Auto Industry Turning to the auto industry , the results for the major US producers, reported below, are similar with one glaring exception, Tesla. Tesla’s resilience is a reflection of strategic effectiveness. The batteries have been the backbone of the company and being able to sell these batteries to larger and more established automobile manufacturers would significantly increase revenue for Tesla. If there is one thing I learned about this company, is that Elon Musk is literally a living god. These companies must be interested in either gaining Tesla’s expertise, technology, or both. Changing the supply chain process overnight would significantly disrupt the manufacturing process. According to Fuel economy, gasoline engines convert only about 17%–21% of the energy but, electric cars convert 59 … Tesla became the first automobile company to successfully create and design a fully electric and rechargeable vehicle that was both beautiful and capable of competing with gasoline powered cars from even the most established automobile manufacturers in the United States. Tesla, Inc. is one of the leading firms in the Auto Manufacturers - Major. The improvement of the supply chain process should be conducted in four major steps. Tesla's market cap has increased by more than $500 billion in 2020, and is now worth as much as the combined market cap of the nine largest car companies globally. Tesla has managed to see success by focusing on high-status and premium electric vehicles (EVs). Focusing on the areas that contain the most consumers and expanding Supercharger stations in these areas first, will become the starting point for expansion. The popularity of Tesla vehicles has increased. A brief history of Tesla. Tesla's second largest segment was the Large SUVs segment. The company sold approximately 2,500 … By rapidly innovating new products. 1. They want to buy the best offerings available by paying the minimum price as possible. This was likely due to sustained annual net losses (See Table 3). When one considers an electric vehicle, they simply think of Tesla. Tesla Valuation Module provides a unique way to ballpark how much the company is worth today. Manufacture and develop electric cars more affordable to reach a broader Consumer base business world is known! 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