AUTOMOTIVE AND ENERGY COMPANY BASED ON PALO ALTO, CALIFORNIA SPECIALIZES IN ELECTRIC CARS FOUNDED BY MARTIN E BERHAD AND MARC TARPENNING CURRENT CHIEF EXECUTIVE OFFICER – ELON MUSK

1.  ABOUT
 PESTEL ANALYSIS
 SWOT ANALYSIS
ECONOMIC ENVIRONMENT BUSINESS
PROJECT

2. PRESENTED BY-
• SHLOKA KUMAR ADARSH
• TARUN AGARWAL
• SOURAV ROY
• SHIVAM KUMAR
• SOURAV KUMAR JHA
• ADITYA GUPTA

3. TESLA
AUTOMOTIVE AND ENERGY COMPANY
BASED ON PALO ALTO, CALIFORNIA
SPECIALIZES IN ELECTRIC CARS
FOUNDED BY MARTIN EBERHAND AND MARC TARPENNING
CURRENT CHIEF EXECUTIVE OFFICER – ELON MUSK

4. MORE ABOUT TESLA
PRODUCTS INCLUDE – MODEL X,
MODEL S, MODEL 3, SOLAR PANELS,
POWERPACK BATTERIES
FROM 2017 TO 2018; VEHICLES SALES INCRESED BY 280%
AIMED AT OFFERING ELECTRIC CARS AT AFFORDABLE PRICES
CHEAPEST CAR PRICED AT $35,000 USD
FOUNDED IN JULY 2003

5. PESTEL ANALYSIS
A PESTEL analysis is a framework or tool used by marketers
to analyse and monitor the external marketing environment
factors that have an impact on an organization.
 P – POLITICAL
 E – ECONOMIC
 S - SOCIAL
 T – TECHNOLOGICAL
 E – ENVIRONMENT
 L - LEGAL

6. POLITICAL
US GOVERNMENT HAS TAKEN STANCES TO IMPROVE THE
DEVELOPMENT OF ELECTRIC HYBRID CARS
CERTAIN TAX CREDIT ARE EXERCISED ON THOSE WHO
BUY ELECTRIC CARS
CERTAIN STATES LIKE VIRGINIA AND COLORADO OFFERS
TAX CREDIT OF UPTO $5000 USD
IMPROVED POLITICAL STABILITY HAS BOOSTED THE
SALES

7. ECONOMIC
RISE IN ECONOMY HAS LED TO RISE IN BUSINESS
IMPROVED ECONOMIC ACTIVITY HAS LED TO RISE IN
EMPLOYMENT
MORE PEOPLE ARE ABLE TO AFFORD LUXURY CARS
DEVELOPMENT IN ELECTRIC BATTERIES HAS ENABLED THEM
TO PRODUCE CARS AT RELATIVELY LOWER PRICES
THIS LEAD TO PRICES OF TESLA BEING QUITE AFFORDABLE

8. SOCIAL
DEMAND FOR SUSTAINABLE PRODUCTS
HAS RISEN GLOBALLY
MORE PEOPLE WANT PRODUCTS THAT ARE GOOD FOR THE
ENVIRONMENT
SUSTAINABLE BRANDS HAVE A BETTER IMAGE IN THE
MARKET AND THE BRANDS THAT ARE INVESTING IN
ENVIRONMENT ARE ALSO MORE POPULAR IN THE MARKET
TESLA HAS GAINED A GOOD IMAGE BY MAKING SUSTAINABLE
PRODUCTS
TESLA’S FOCUS IS ON HELPING THE BRAND TRANSITION
TOWARDS A BETTER, GREENER, SUSTAINABLE AND MORE
FUEL ECIENT FUTURE

9. TECHNOLOGICAL
UNDENIABLY THE BIGGEST FACTOR INFLUENCING THE
GROWTH AND MARKETING OF BUSINESSES GLOBALLY
TESLA’S SALES AND PROFITS ROSE VERY FAST FROM 2015
TO 2016
BIG REASON BEHIND THIS WAS THE FAST IMPROVEMENT
IN SUSTAINABLE DEVELOPMENT
TECHNOLOGICAL ADVANCEMENT
IN DEVELOPMENT OF LITHIUM ION
BATTERIES HAS RESULTED IN -
 LOW COST OF BATTERIES
 BETTER MILEAGE OF THE VEHICLE
 EASY MANUFACTURING OF BATTERIES

10. ENVIRONMENTAL
ENVIRONMENTAL FACTOR ARE NOW ALSO GROWING IN
IMPORTANCE IN THE CONTEXT OF BUSINESS
BRANDS THAT HAVE INVESTED IN ENVIRONMENT HAVE
GROWN FASTER IN POPULARITY
IN TERMS OF ENVIRONMENTAL IMPACT TESLA HAS A VERY
GOOD REPUTATION.
FROM ITS ELECTRICAL VEHICLES TO
THE OTHER ENERGY SAVING
PRODUCTS, EVERYWHERE THE FOCUS
IS ON SUSTAINABILITY AND SAVING
ENERGY

11. LEGAL
LEGAL FACTORS HAVE GROWN IN
IMPORTANCE IN THE 21ST CENTURY
FROM LABOR REGULATIONS TO ENVIRONMENTAL AND
OTHER KIND OF BUSINESS REGULATIONS, LAW CAN HAVE
A DIRECT EFFECT ON BUSINESSES
MANY SUCH LAWS HAVE BECAME FAVOURABLE TOWARDS
SUSTAINABLE BUSINESSES
SOME LAWS ARE RELATED TO SUPPLY CHAIN AND LABOR
THAT AFFECT AND LEAD TO HIGHER OPERATIONAL COSTS

13. SWOT ANALYSIS
SWOT ANALYSIS IS A FRAMEWORK USED TO EVALUATE
A COMPANY’S COMPETITIVE POSITION BY IDENTIFYING
ITS STRENGTHS, WEAKNESSES, OPPORTUNITIIES AND
THREATS
 STRENGTHS
 WEAKNESSES
 OPPORTUNITIES
 THREATS

14. STRENGTHS
TECHNOLOGY: TESLA HAS ALWAYS BEEN ASSOCIATED
WITH CUTTING-EDGE TECHNOLOGIES AND MANY
COMPANIES HAVE ADOPTED THE TECHNOLOGIES
INTRODUCED BY TESLA
MONOPOLY: TESLA MOTORS STARTED OFF TARGETING A
VERY UNUSED SEGMENT WHICH WAS ELECTRIC AND
ALTERNATE ENERGY CARS. NOW IT WOULD NOT BE
WRONG TO SAY THAT THE COMPANY OPERATES IN A
MONOPOLY MARKET
GREAT LEADERSHIP AND TEAM SPIRIT: THE CEO OF THE
COMPANY ELON MUSK IS EXTREMELY PASSIONATE ABOUT
ENGINEERING AND AN ASTUTE SALESMAN. THIS MAKES
EQUALLY PROFICIENT IN THE ENGINEERING AS WELL AS
THE COMMERCIAL SIDE OF THE BUSINESS.

15. WEAKNESSES
POOR LIQUIDITY: IN COMPARISON TO COMPETITORS
LIKE FORD WHICH HAS USD 20 BILLION OR GENERAL
MOTORS WITH USD 25BILLION WHICH ARE CASH RICH FROM
YEARS AND YEARS OF OPERATIONS. IN COMPARISON TO
THIS TESLA HAS ONLY USD 3 BILLION USD WHICH WILL NOT BE
SUFFICIENT FOR IT TO SURVIVE THE LONG TERM.
CAPACITY ISSUES: TESLA MANUFACTURES CARS IN JUST ONE
PLANT. THE PLANT HAS A CAPACITY TO MAKE 500,000 VEHICLES
MAKING IT DIFFICULT FOR THE COMPANY TO TARGET HIGHER
VOLUMES.
POOR CUSTOMER AWARENESS: TESLA PRODUCTS ARE HIGHLY
FUTURISTIC AND MOST CUSTOMERS ARE STILL NOT SURE ABOUT
WHETHER OR NOT THEY NEED TO INVEST IN THESE
TECHNOLOGIES WHICH ARE EXPENSIVE.

16. OPPORTUNITY
PREFERENCE FOR NEW TECHNOLOGIES: VEHICLE
TECHNOLOGY IS TAKING A WHOLE NEW TURN. THERE ARE
A HOST OF NEW TECHNOLOGIES LIKE HYBRID VEHICLES,
GREEN CARS, ELECTRIC CARS, BATTERY OPERATED CARS
AND SELF-DRIVEN AUTONOMOUS CARS. TESLA HAS
RESEARCHED AND LAUNCHED MANY PRODUCTS IN THESE
EMERGING TECHNOLOGY AREAS.
COST-REDUCTION INITIATIVES: IN ORDER FOR TESLA TO
FINALLY BEGIN POSTING PROFITS, IT WILL NEED TO
BRING DOWN COSTS. IT IS MAKING MOVES TO
ACCOMPLISH THIS GOAL. THE COMPANY IS IN THE
PROCESS OF BUILDING A GIGAFACTORY, WHICH WILL
ALLOW IT TO BUILD BATTERIES FOR ITS VEHICLES AT
REDUCED COSTS.

17. THREATS
COMPETITION: TESLA FACES A LOT OF COMPETITION
FROM VARIOUS CAR COMPANIES LIKE FORD, GENERAL
MOTORS, FIAT CHRYSLER AUTOMOBILES, AS WELL AS
TECHNOLOGY COMPANIES LIKE GOOGLE.
FUNDING: EVEN AFTER ITS RELATIVELY LOW ASSETS THE
COMPANY ANNOUNCED THE PRODUCTION OF 5,00,000
CARS IN 2019, 2 YEARS AHEAD OF SCHEDULE. THERE
COULD BE A CHANCE THAT THE COMPANY WOULD NOT BE
ABLE TO FUND THIS.