SWOT Analysis Of Tesla

Tesla’s internal environment has been affected of strengths and weaknesses, and there are various external factors will affect the operation of Tesla. For example Opportunity and Threaten.
 SWOT analysis
1. Strengths In the automotive market, Tesla has a unique position. Tesla offers innovative new technology to manufacture electric vehicles. While Tesla is not the only car manufacturer of electric vehicles, but it has hit the luxury remotely create and dominate the electric vehicle market. The market is clear from inexpensive electric cars, as well as the market for luxury gas-power vehicles. Moreover, Tesla has a strongly sales growth. Tesla has been rapidly increasing in the past few years, mainly due to public interest in its vehicles.

It is mainly due to the significant investment in research and development of technology transformation of their car. It is also the result of the company within a few years of rapid expansion. Tesla also Gigafactory invested heavily in the construction of the Gigafactory has begun production of batteries, and lithium batteries manufactured before the end of the year. Because these large cash outlay, Tesla will report earnings and free cash flow. Therefore, Tesla was forced to add more debt and sell more shares. Tesla 's debt liabilities is relatively high. As of March 31, 2016, Tesla has nearly $ 2.5 billion in long-term debt and capital leases on the balance sheet, 72% of the total capital. In contrast, only $ 1.4 billion in cash. The debt interest payments is important, it may continue to cut benefits. If the company cannot fulfill the debt, due to lack of cash flow, it may want to reduce or delay capital expenditures and investments, which could hinder future

The external factor is directly related to micro carbon emissions of the company’s products. In the United States, the Department of atomic energy has approved 465 million US dollars to finance loans. The federal government is paying $7500 in tax credits for buying electric cars. Like Colorado and Virginia, they offer more than $5000 US dollars in tax credits for purchasing electric cars. The government of India has launched the FAME program to support manufacturing and sales support for hybrid and electric vehicles by 2020. In addition, the government of Hong Kong has implemented all tax exemptions for electric cars. Moreover, the expansion of free trade agreements provides an opportunity for Tesla expand its business. On the order hand, the political stability of the main market and the macro environment favorable for Tesla market penetration