Tesla's Industry and Competitive Conditions

Tesla: External Environment Report
Author
Affiliation
Course
Instructor
Due Date
Tesla: External Environment Report
The Industry the Company Operates in
Electric vehicles and energy storage and production are the focus of Tesla, Inc.'s research and development. As a result, the company's principal concentration is on developing all-electric automobiles. Besides renting and selling these items, the company also provides services relevant to its product offerings. In addition to selling automotive regulatory credits, the Company's automotive business sector includes the development, production, construction, marketing, and leasing of electric vehicles. It also offers vehicle regulatory credits. As a side note, the automobile industry encompasses not only goods but also services and other components. Vehicle non-warranty aftermarket services, retail sales of consumer goods and autos, the sale of previously used vehicles, sales by the company's acquired firms to third parties, and the sale of automotive insurance are some of these aspects (Yan, 2020). Its energy production and storage business offers incentives for installing solar energy systems and the design and manufacturing of solar energy-producing equipment and associated services. The company's automobile offerings are model 3, Model Y, Model S, and Model X. The two lithium-ion battery energy storage solutions offered by this firm are Powerwall and Megapack.
Regarding global sales, Tesla maintains its position as the market leader in the electric car industry. Remarkably, Tesla ($5.5 billion) was the world's eighth-most profitable vehicle business even though the firm only had two assembly lines operating in the previous year (Sull & Reavis, 2019).
Current Industry Condition
Automakers like General Motors and Ford were operating in a parallel universe to Tesla for most of last year. Because of a lack of computer chips, G.M. and Ford stopped one facility after the other—sometimes for months—leaving dealer lots empty and driving up vehicle costs (Teece, 2018). Since 2020, Tesla has sold roughly twice as many vehicles as it did, piling up record sales quarter after quarter.
Tesla's capacity to produce crucial components is more important than the sales of one year's cars. They may be more dangerous to established auto giants like G.M. and Volkswagen than most industry executives and regulators understand. They may also be a model for other emerging electric vehicle startups. Substituting more gasoline-powered vehicles sooner would aid the effort to decrease emissions that cause climate change (Thomas & Maine, 2019). There is a risk that this might harm the many local and national governments that depend on conventional vehicle manufacturing to provide employment and tax money to their citizens.
When it comes to how Tesla beat the rest of the auto business, the company and its mysterious CEO, Elon Musk, have kept quiet. In the end, it became evident that the corporation had a better grasp of technology and its supply network. Tesla could predict demand better than companies that manufacture several times as many vehicles as it does. A dramatic decline in sales early in the epidemic shocked other automakers, who had not purchased...