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Tesla SWOT Analysis: Strengths & Weaknesses (Essay Sample)


Conduct a SWOT analysis to analyze internal and external conditions Tesla must consider going forward.


  • Experienced management with good track record (Elon Musk)
  • Recognized brand with Tesla and recognition for quality design
  • Technology expertise in battery electric vehicles
  • Production in California near primary market with celebrity owners
  • Gaining economies of scale with internal production of cars and now batteries


  • Higher prices than competitors
  • Struggles to maintain consistent profitability
  • High identification of company with Elon Musk, who is also managing SpaceX and SolarCity
  • Focus only on electric vehicles
  • Rely on improved lithium-ion battery performance for future success
  • Problems expanding production models 


  • Growing concerns of environmental sustainability and acceptance of electric cars
  • Alliance with other auto manufacturers by making technology available
  • Expanding beyond sports cars to broader market categories
  • Expanding internationally
  • Additional alliances to access financing 


  • Increased competition in U.S. market and internationally
  • Lack of a clear standard, and the potential it will be set by a competitor
  • Lack of infrastructure supporting Tesla vehicles outside coastal U.S. markets
  • Young people are less interested in cars
  • Risk of economic slowdown.

Combine Some facts from PESTEL analysis to support all the points.


Tesla SWOT Analysis

Tesla Motors Inc. is growing at a fast rate and has made massive revenue in recent years through the sales of its new car models. The manufacturing and marketing sectors have realized tremendous success as far as cost efficiency is concerned (Harvard Business, 2015). However, the company has room to improve further. Nevertheless, some factors may threaten the expansion of the company both locally and internationally. Below is a SWOT analysis that will shed light on the company’s strengths, weaknesses, opportunities, and threats.


Strengths are internal business factors that enable the organization to compete against other companies to make sure it realizes reasonable profits, particularly on a long-term basis (Harvard Business, 2015). Some of the strengths possessed by Tesla include robust management, recognized brand, technology expertise, and close proximity to its primary consumers, among others. Tesla Motors is popular for its strong emphasis on the application of new technology in the manufacture of new vehicle models. The company has introduced first fully electrified sports car. Subsequently, such innovative idea has given Tesla an edge over the other sports car companies and it is making huge profits. Moreover, the company’s brand is strong and it signifies innovations and solutions to the preservation of the environment, which is in line with business goals set by CEO Elon Musk (Frank & Marne, 2015). Having a strong brand optimizes the ability of the company to attract even more and retain new customers. The strong and experienced management makes it possible to control the production process, whereby the company manufactures cars and most of their components, eliminating issues related to the involvement of third parties.

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