Business Review of Tesla Company

BUSINESS REVIEW
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Business Review of Tesla
Economic analysis: how will the overall economy affect the company’s business?
Given that the company is producing and luxury goods, slight shocks on the economy can have a big impact on the company. Up to date, the company has never made a profit though it is expected to be profitable soon owing to ramping up production numbers since the overall goal of the company was to expand aggressively and dominate the market. The company has also been reliant on government incentives to promote use of clean power and economic shocks can either reduce these incentives and or reduce their sales numbers which is the other main source of revenue. Additionally, Tesla performance in the stock market is largely centered on the Elon Musk’s character. Whenever he mentions anything controversial, there is always significant movement of the share value CITATION Leo18 \l 1033 (Vanstone, 2018).
Industrial Analysis
Tesla has caused a ripple in the car manufacturing industry by proving the concept of practical electric cars. As a pioneer of the technology, the company has enjoyed dominance in the market but lately, more companies have caught up and they are producing electric cars. Most other automotive companies have invested in producing electric cars with notable corporations like BMW, Jaguar, Renault, Honda, Lucid etc. having released at least one electric car. The industry is however not saturated and each company sales are impressive at the moment. Tesla hover has few advantages over its competitors due to the strategic diversification of her products. Tesla is largely an electric energy firm with strategic mergers i.e. with the solar city and being contracted to provide energy solutions to countries, companies etc. this has hel...