Tesla Motor Inc. Competitor, Customer and SWOT Analysis

Subject: Business
Type: Profile Essay
Pages: 3
Word count: 824
Topics: SWOT analysis, Business Ethics, Innovation, Management, Marketing

Tesla motor Inc. is considered a standout among other giant companies in the same industry.  Globally, Tesla products are utilized and acknowledge by all walks of life. From automobile to electric cars, Tesla Company has been serving the industries and its consumers in great terms. Tesla Company fundamentally deals with the production of electric cars. It is based in America and its name was derived from the chief executive Nikola Tesla (Liu et al, 2014). With a specific ultimate goal to keep the market gradient up and running, Tesla Company ought to dependably consider some internal as well as external market forces. Tesla has canvassed many nations and states; in this regard, it is imperative to dissect competitor analysis, customer analysis as well as SWOT analysis 

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Strength Weakness Opportunities and Threats (SWOT)

The SWOT analysis of Tesla motor is also referred to as internal and external analysis. It is worth looking at as it will give a rough overview of the company’s business position (Birk, 2015).


Tesla is a major supplier of car parts to other car manufactures; it supplies spare parts to Toyota, which they use in RAV4. Additionally, it is considered as the best electric car manufacturer globally (Hardman, Shiu & Steinberger-Wilckens, 2015). Worth noting, Tesla has a sheer and complete advantage over other manufacturers; Tesla has the ability to manufacture environmentally friendly cars that use electricity instead of an engine.  


Tesla cars are strikingly expensive, model X, which is a high-tech car that was recently launched, is so expensive compared to other cars. Additionally, Tesla Company is criticized for its delay in making delivery; if a customer places an order, it takes a whole year to collect the goods. Albeit making strides toward development of electric cars, it is still a challenge as people still suspicious of an electric car, which is extremely difficult to handle (Mangram, 2012).


As the word is increasingly running short of oil and as the prices of oil keep surging, the next option is to look for alternatives. Tesla has made strides toward the invention of the electric car stands a better ground to make huge profits in the future. Also the fact that all walks of life word over are becoming conscious about the environment, this is good news to Tesla motor as they are manufacturing environmentally friendly cars.


Tesla motors face stiff opposition from other larger manufacturers in the market. Although Toyota and Volkswagen are not manufacturing electric cars, they still make good sales as electric cars have not reached all corners of the globe. Besides, the cars are very expensive and only a small percentage can afford it. Finally, electric car manufacturers are popping out day in day out, thus posing a stiff competition in future. 

Customer analysis

Half of the US adults consider the gas price to be too high when it hits to $3.44 per gallon. When the prices are up to the ceiling, consumers consider alternatives to replace automobile cars that consume fewer gallons within a mile. This effect spurs the demand for more energy efficient cars. Eco-friendly users consider buying pure electric cars or hybrid electric/ gas automobile cars.

The current target individuals comprise business executives, entrepreneurs who reside in the city, tech-savvy individuals, green friendly-citizens, early adopters who are in the upper to middle class. Precisely, Tesla motor targets wealthy individuals who have insatiable greedy for luxurious car models. Additionally, these individuals already own expensive brands such as BMW, Mercedes and Audi.

Due to the growing increasing demand for Tesla products, it is now considering expanding its market to reach out to young people between the age of 19 and 35 years. The following table shows the distribution as well as the demographist composition of Tesla’s customer (Tansel, 2015).

GENDERmale 80%
AGE18-40 yrs25%
 41-59 yrs64%
 60- & above11%
INCOMEbelow $50,0009%
 $50,000- $100,00021%
 $100000 & above70%


Competitor analysis

Arguably, Tesla motor is undeniably the best and the fastest evolving auto manufacturer of the decade. As giant automaker increases their focus on electric vehicles, Tesla motor is facing very stiff competition if this sector. In December 2016, Ford Motor Company, which poses a big threat to Tesla, announced the intention to put an additional budget in order to venture into electric car manufacturing. General Motors, another big fish in the market, has made big strides in the industry; it introduced a power battery powered by Chevrolet and has a capacity of 200 charges per mile. Other prayers include Honda Motor Company, Navistar and Toyota Motor Company.

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Although Tesla is facing stiff competition, Tesla motor still has a competitive edge given its supercharging network. The supercharger network has over three thousand superchargers scattered in the US, giving its car users a convenient option of for charging. Since no other manufacturer has this rather network, Tesla motor is still a stand out on the market.

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  1. Birk, D. (2015). Tesla Motors, Inc. Market Analysis and Definition.
  2. Hardman, S., Shiu, E., & Steinberger-Wilckens, R. (2015). Changing the fate of Fuel Cell Vehicles: Can lessons be learnt from Tesla Motors?. international journal of hydrogen energy40(4), 1625-1638.
  3. Liu, Y. E., Kang, Y., Wu, H., Chen, C., & Hon, E. (2014). Tesla Motors Inc. Case Synopsis. Burnaby BC: Simon Fraser University. Retrieved10(18), 2014.
  4. Mangram, M. E. (2012). The globalization of Tesla Motors: a strategic marketing plan analysis. Journal of Strategic Marketing20(4), 289-312.
  5. Tansel, A. K. (2015). Analysis of Tesla Motors’ Marketing Communications Strategy.
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