Tesla Pest Analysis

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PEST analysis:

This technique analyses Tesla’s position in the marketing environment by considering how it’s doing from the political, economic, sociocultural and technological perspectives.

In the case of Tesla and the automotive industry, the following political external factors are significant:
1. Political stability in the majority of the big markets.
2. Presence of Government incentives for electric automobiles, in attempt to reduce the emissions, particularly in the light of the recent growing political interest in climate and global warming.
3. Expanding free trade agreements. These factors are encouraging for Tesla, and are opportunities to be harnessed in order to expand its sales and foster its presence in the market.
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The marketer should conduct a SWOT analysis, by which it evaluates the company’s overall strengths (S), weaknesses (W), opportunities (O) and threats (T) (Kotler 54)

This SWOT analysis shows that Tesla has the strengths needed to maintain profitability in the long term. However, it also suggests a necessary strategic reform to ensure Tesla’s competitiveness and long-term success in the global automotive market. As a popular manufacturer of electric vehicles, the company still needs to invest in global expansion. Limited global operations remain a weakness that, together with other issues identified in this SWOT; Tesla must address to achieve international competitiveness and business growth.

Tesla Motors, Inc. is known for its innovation, especially in introducing the world’s first fully electric sports car. This internal strategic factor is a strength that motivates the company to develop more competitive and state of the art products. Tesla also has the strength of high control on vehicle production, where the company manufactures its automobiles in company-owned factories in the United States. This minimizes hazards linked to the involvement of third parties. This aspect of Tesla’s SWOT analysis points to innovation and brand image as major strengths of the
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has the necessary strengths to remain successful in the business in the years to come. However, as identified in this SWOT analysis, there are various defects that the company needs to address to stay competitive and improve its profitability. Tesla needs to focus on its international presence. For example, new facilities and sales operations in high-potential developing countries can enhance business growth, satisfying Tesla’s mission and vision. Similarly, the company must continue its investments in research and development (R&D) to maintain its technological edge. This SWOT analysis shows that Tesla can potentially grow in the global automotive market despite aggressive competition.
However they need to continue creating a great product that; as Musk stated, will sell to customers even if they don’t care about the environment.

Deciding to enter an industry when the youngest car brand is 90 years old is not an easy decision as its not an industry that is supportive for new comers however without a CMO and extremely minimal direct advertising Tesla Motors continued to innovate and they build a great brand name that people love to be attached to, their marketing concept especially the societal aspect of it gave them a great advantage on other auto

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