Tesla Motors Essay Example for Free

Tesla Motors Essay Strength 1. They developed 1st fully electric sports car â€Å"The Roadster†Ã¢â‚¬ ¨ 2. Also a strong supplier to other manufacturers like Toyota†¨ 3. Strong technological expertise in the area of electric transmissions drive train†¨ 4. Ability to develop vehicles completely in house including the sub-assemblies required 5. Their current platform developed for Model S has the ability to be used for their future crossover model or any other model they envision Weakness. 1.Since they fully develop the vehicles including their sub-assemblies this leads to higher costs of production as economies of scale are not achieved†¨ 2. The prices of their products are higher than their competitors who sell combustion engine powered vehicles Opportunity 1. The growing support by governments across the globe for environmentally friendly vehicles in form of exemptions from duties other support†¨ 2.Supports the Mercedes’ Smart car, which can lead to learning which will help them with their passenger cars which they plan to launch in near future†¨ 3.Improvements in the quality control processes can reduce these costs drastically Threats. 1.Tesla wants to be able to produce, distribute sell its cars to average which seems difficult to achieve due to their current business model†¨ 2. Their strategy for pricing (skimming) has not been used so far in the auto industry†¨ 3. They are currently competing against a technology which has been in use for over hundred years i.e. the combustion engines also their technology may take time for being optimal for use of masses Competition. Competitors 1. Chevrolet Volt 2. Toyota Prius 3. Honda Civic Hybrid 4. Toyota Rav4 Hybrid 5. Smart Car.