Tesla Motors Inc. PESTEL Analysis: Pollution

Tesla’s PESTEL Analysis Student’s Name Institutional Affiliation Tesla’s PESTEL Analysis Tesla Motors Inc. The car manufacturing industry has become highly competitive, particularly due to the increased need for conservation of the environment, which has necessitated the production of eco-friendly vehicles. Consequently, Tesla Motors Inc. has tremendously revolutionized the motor vehicle sector by introducing electric cars that do not contribute towards the pollution of the environment like gasoline cars. Some external factors such as political, economic, social, technological, legal and environmental factors affect how the company operates. Political Influences The establishment of the Tesla Motors Inc. was greatly influenced by the current political environment in North America (Rothaermel & Arthaud-Day, 2015). For instance, in the United States, the government has introduced the taxation system that favors the production of electric cars in a bid to protect the environment from carbon emissions. Moreover, the government granted the company a loan of $465 million to enable it facilitate its operation (Schonfeld, 2009). In Canada, various province governments have also offered support towards the production of the eco-friendly vehicles. For example, Ontario has enacted a legislation that will allow construction of 240V outlets to allow charging of the electric cars (Schonfeld, 2009). Economic Factors Some economic factors that have affected Tesla Motors include the economic crises. For example, in 2008, the world was hit by a severe economic crisis that affected the sales of most commodities around the world (Rothaermel & Arthaud-Day, 2015). The sales of cars fell dramatically during this period, but it has risen since the 2008 recession. The sales are now back to the levels observed before the collapse of the market. Further, the cost of fuel has risen and a considerable number of people are considering using more energy-efficient vehicles and this could work in favor of Tesla (Rothaermel & Arthaud-Day, 2015). Social Influences Most of the social factors influencing the operation of the Tesla are based on the current environmental concerns. Customers have become more aware of the drastic effects gasoline fuels have on the environment (Rothaermel &am...