Five Force Model of Tesla

3.  Tesla was founded in 2003,california,USA by ELON MUSK &
MARTIN EBERHARD.
 Design, manufacturers and sell electric cars and vehicle
powertrain components.
 Tesla is positioned as a high-end green electrical car’s
company in a luxury market.
 Gained widespread attention after launching first fully
electric sport cars- THE TESLA ROADSTER in February
2008.

6.  Engineering are produced by tesla and Lithium
ions cells are supplied by Panasonic with which
tesla conclude a partnership to build a
Gigafactory in Nevada decreasing battery final
cost by 30% from here to 2018.The individual
cost prices for an IC car is given by Exhibit 1. -
Solar panels for Solar Roof are provided by solar
city which will soon merge with Tesla. - demand
is growing with the accessible model 3 (35 000$)
and tesla forecast a production growth from 100
000 in 2015 to 500 000 in 2020. Competition is
important in various car engine supplier but a
necessity to shift could cost tesla a lot in
delivery postponing.

7.  Collective actions in order to push price
down have consequently low probability to
occur. - In case of important defaults, they
could gather their discontent to force tesla
decrease its prices. Due to an aggressive
price strategy, arguments to push prices
even lower are rare. Delivery processes are
long and deadline often delayed what could
make customers claiming for discount.

8.  Considering electric car market (no matter
H2, biofuel, biogas), medium potential of
substitution driven by common transports,
bicycle trends or low cost car subscription
programs, considering widely sustainable
lifestyle market, low potential of substitution
evidenced by small amount of available
alternatives in providing intelligent energy
management services to consumers.

9.  High financial barriers for new entrants in
the car industry making new entrant very
occasional. - Traditional car manufacturer
will entry the electric car market as soon
as 20 or already did. They embody a high
short-term threat on electric car market.

10.  Safety norms for electronic products empower the
government to legally delay deliveries. - Ethical issues
concerning Self-driving decision making empower the
government to sue tesla for Al problematic decisions -
Financial participation and help provided by governments
make tesla's activities leveraged by public decisions. A study
in 2009 conducted by DOJ, found consumers would save
approximately $2200 on vehicles that are sold directly from
manufacturers to consumers. So what is stopping them? In
2013, the U.S. federal government gave a $7,500 tax credit
for the purchase of EVs such as the Leaf or the Model S.
Individual states often have additional incentives.
Manufacturers that fell short could buy ZEV credits from
others who were above the mandated minimum. The rule
encouraged the production of EVs directly and by giving
producers of EVs an extra source of income. However, the
price of such credits was expected to drop quickly as all
producers started selling more EVs.