Business Report: A Strategic Assessment of Tesla, Inc.

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 Assessment of Tesla 2

Table of Contents
Analysis of Market Sectors and Value Chains..................................................................................4
Tesla's Inbound Logistics: A Deeper Look at the Vertical Integration Strategy........................4
Sourcing of Raw Materials and Production of Components........................................................4
Consolidation of the Supply Chain.................................................................................................4
Inventory Management on a Just-In-Time (JIT) Basis............................................................5
Tesla's Operations: Embracing Cutting-Edge Technology and Lean Principles....................5
Manufacturing Technology on the Cutting Edge......................................................................6
JIT (Just-In-Time) Manufacturing............................................................................................6
Total Quality Management (TQM)............................................................................................6
Tesla's Outbound Logistics: Direct-to-Consumer Sales and Distribution Challenges...................7
Approach to Direct-to-Consumer Sales.........................................................................................7
Consistent customer Experience.....................................................................................................7
Distribution Issues.......................................................................................................................8
Tesla Marketing and Sales..................................................................................................................9
Traditional advertising is kept to a minimum...............................................................................9
Word-of-Mouth Marketing.............................................................................................................9
The Media Presence of Elon Musk.................................................................................................9
Digital Marketing and Online Platforms.........................................................................................10
Tesla Service: Over-the-Air Software Updates for a Better Customer Experience..................10
Software Updates over the Internet.............................................................................................10
Customer Advantages...............................................................................................................11
Engagement and Long-Term Relationship..................................................................................11
Extensive research and critical analysis.......................................................................................12
Strategic Level Analysis and Value-Added Strategy...............................................................12
Tesla Value Co-Creation: Innovative Products, a Flexible Supply Chain, and a Customer-
Focused Approach.....................................................................................................................12
Innovative product development..............................................................................................12
Adaptable Supply Chain...................................................................................................................13
Approach to Customer-Focused Sales.........................................................................................13
Theory of Marketing and Operations Management.......................................................................14
Marketing Techniques: The 4Ps Model.......................................................................................14
JIT and TQM in Operations Management..................................................................................15
Marketing and Operations Management Recommendations for Tesla.....................................16
SWOT Evaluation.............................................................................................................................17
TOWS Evaluation.............................................................................................................................19
 Assessment of Tesla 3

Conclusion..........................................................................................................................................21
References..........................................................................................................................................22
Appendix: Market Performance of Tesla........................................................................................25
 Assessment of Tesla 4

Business Report: A Strategic Assessment of Tesla, Inc.

Analysis of Market Sectors and Value Chains

Tesla is a global automotive and energy company focusing on electric cars (EVs), energy

storage, and renewable energy solutions. The company is recognized for pioneering hastening

the global transition to renewable energy. Tesla's value chain, when analysed using Porter's

Value Chain Model, comprises a series of activities that add value to its operations:

Tesla's Inbound Logistics: A Deeper Look at the Vertical Integration Strategy

Tesla's vertical integration strategy is a distinguishing element of its business model and

significantly impacts inbound logistics. The corporation owns and controls its supply chain

under this model, from raw material sourcing to final product manufacturing. It's a novel

strategy in an industry that has always relied on a broad network of suppliers.

Sourcing of Raw Materials and Production of Components

Tesla obtains raw materials from mining firms, such as lithium, for its batteries. In contrast,

the majority of manufacturers rely on battery providers. Tesla has also invested in its battery

manufacturing facilities, such as the Gigafactory in Nevada, to develop its unique battery

packs. There are various advantages to having direct control over raw materials. It lessens

reliance on external suppliers, which might lead to price fluctuation and supply instability

(Stringham et al., 2015, pp.85-103). It also allows Tesla to develop freely, designing its

batteries and other components to meet its exact requirements. For example, it has pioneered

breakthroughs in battery technology, such as its transition to a new 4680-cell structure meant

to boost energy density while decreasing costs.

Consolidation of the Supply Chain

Many component manufacturing techniques, like seats and other automotive parts, are being

brought in-house by Tesla. This unification helps assure quality control while reducing the
 Assessment of Tesla 5

logistical and coordination problems of managing various vendors. However, this level of

vertical integration comes with its own set of issues. It necessitates large financial

expenditures and can increase operational complexity. Tesla, for example, must manage its

own production bottlenecks and supply chain interruptions, risks that many manufacturers

pass on to their suppliers.

Inventory Management on a Just-In-Time (JIT) Basis

Tesla employs JIT ideas in its incoming logistics as well. Rather than stockpiling vast parts,

parts are delivered as needed for assembly. This method reduces inventory costs and space

requirements but necessitates close coordination with suppliers and manufacturing schedules.

In essence, Tesla's vertical integration strategy enables it to manage its incoming logistics,

reducing risks from external suppliers and allowing for more significant innovation (Jing,

2020, pp. 469-478). This strategy, however, necessitates tremendous capital and operational

complexity. Tesla must carefully manage these trade-offs to ensure its operations' efficiency

and efficacy.

Tesla's Operations: Embracing Cutting-Edge Technology and Lean Principles

Tesla has adopted lean principles such as Just-In-Time (JIT) and Total Quality Management

(TQM). JIT is a manufacturing method that reduces production system and supplier response

times. Tesla may decrease inventory costs and enhance efficiency by obtaining parts only

when needed in manufacturing.

Meanwhile, TQM is a strategy for improving quality and performance to meet or exceed

customer expectations. Quality is integrated into every level of the production process at

Tesla, not simply the finished product. The company employs real-time data from its

manufacturing systems to monitor quality and swiftly detect and address any concerns.
 Assessment of Tesla 6

Manufacturing Technology on the Cutting Edge

Tesla has transformed the car industry by incorporating cutting-edge technologies into its

manufacturing processes. The company heavily relies on automation, robotics, and AI-driven

systems to streamline production and improve efficiency. These technologies enable Tesla to

achieve high precision, reduce human errors, and increase production speed (Bredenfeld et

al., 2020, pp.47-70). Robotic arms, for example, are utilized for various jobs such as welding,

assembly, and painting, maintaining consistency and eliminating labour-intensive processes

(Badolato, 2022, pp.24-53). Tesla also uses data analytics and real-time monitoring systems

to track key performance indicators (KPIs) and optimize manufacturing operations. This

enables the company to identify bottlenecks or inefficiencies quickly and make data-driven

decisions for continuous improvement.

JIT (Just-In-Time) Manufacturing

Tesla adheres to the JIT philosophy, which aims to reduce inventory and associated costs by

receiving and utilizing materials and components only when they are needed for production.

JIT assists Tesla in avoiding overstocking or carrying excess inventory, lowering storage

costs and the risk of obsolescence. Tesla maintains a lean and agile manufacturing process by

implementing JIT (Le et al., 2021, pp.23-52). It guarantees that materials are delivered

precisely when required, avoiding waste and optimizing resource allocation. This strategy

enables Tesla to adapt swiftly to shifting market demands and adjust production to specific

client requests.

Total Quality Management (TQM).

Tesla places a high value on quality throughout its operations, adhering to TQM standards.

TQM is a methodical technique for obtaining and maintaining high product quality through

continuous improvement and employee participation.

 Assessment of Tesla 7

TQM is ingrained in every stage of the manufacturing process at Tesla. Quality control

techniques such as thorough inspections and testing ensure that each vehicle meets the

company's requirements (Leal et al., 2022, pp.123-152). Tesla also emphasizes using

feedback loops to identify and address problems immediately. Tesla's dedication to TQM

extends beyond the production process. The organization aggressively encourages employees

to share improvement suggestions and supports a quality and continuous learning culture.

Tesla's Outbound Logistics: Direct-to-Consumer Sales and Distribution Challenges

Tesla's outbound logistics strategy is distinguished by its direct-to-consumer sales strategy,

which avoids traditional dealer networks (Gillmore et al., 2020, pp.61-78). This one-of-a-kind

strategy enables Tesla to deliver a smooth and personalized client experience. It does,

however, present the corporation with unique distribution issues.

Approach to Direct-to-Consumer Sales

Unlike traditional automakers, Tesla sells its automobiles to consumers directly through

company-owned storefronts and its online platform. Thanks to its direct sales model, Tesla

has better control over the client experience, from initial enquiry to delivery (Du et al., 2021,

pp.1679-1687). Tesla can build tighter contact with customers, gather helpful feedback, and

maintain a consistent brand image by eliminating intermediaries.

Furthermore, the direct-to-consumer strategy enables Tesla to educate potential consumers

about the benefits of electric cars (EVs), demonstrate technology developments, and provide

test drives. This personalized experience helps to reduce consumer anxieties and develop

trust, resulting in higher conversion rates.

Consistent customer Experience

Tesla's direct sales methodology provides a consistent consumer experience. With transparent

pricing and customization possibilities, customers can conduct vehicle research,

 Assessment of Tesla 8

configuration, and ordering online. They may monitor their order status and receive

information along the manufacturing and delivery processes (Hong et al., 2020, pp.14-38).

Tesla's commitment to customer happiness extends beyond purchasing a vehicle,

emphasizing after-sales assistance and over-the-air software updates to improve vehicle

performance.

Tesla can assure consistency in the brand experience and build a loyal customer base by

controlling the client journey completely.

Distribution Issues

While direct-to-consumer sales have obvious advantages, they also present distribution issues

for Tesla. Among the significant challenges are:

i. Infrastructure and Service Centres: As Tesla enters new areas, it must create physical

infrastructure and service centres to support customers efficiently. This includes

growing the network of Tesla Stores, Supercharger stations, and service centres to

provide customers with easy access.

ii. Regulatory Obstacles: Tesla faces regulatory problems in certain regions where direct

sales are prohibited or restricted. These regulations frequently favour traditional

dealership models, forcing Tesla to modify its sales strategy to conform with local

laws or fight legal fights to get the ability to sell directly.

iii. Logistics and delivery: Delivering autos to clients directly necessitates effective

logistics management (Halder et al., 2020, pp.10-38). Tesla must optimize its delivery

process, including vehicle shipments, appointment scheduling, and documentation

management.

Tesla addresses these issues by intentionally increasing its physical presence, pushing for

regulatory changes, and investing in customer service infrastructure.

 Assessment of Tesla 9

Tesla Marketing and Sales

Tesla has developed a distinct marketing and sales approach that distinguishes it from other

automakers. Rather than depending significantly on traditional advertising approaches, the

company relies on word-of-mouth marketing and benefits from its CEO, Elon Musk,

considerable media presence (Nie et al., 2018, pp.1-19).

Traditional advertising is kept to a minimum.

Unlike many car firms, Tesla has taken a different approach to traditional advertising

mediums such as television, print, and radio. The corporation spends relatively little on

conventional advertising initiatives. Instead, Tesla stresses new goods, customer experiences,

and technology improvements to build buzz and draw attention.

Word-of-Mouth Marketing

Tesla's strategy mainly focuses on word-of-mouth marketing, where delighted consumers

become ambassadors for the company. By delivering excellent products and experiences,

Tesla cultivates a committed and enthusiastic customer base that promotes the brand to its

network. Positive feedback, testimonials, and personal recommendations all help to broaden

Tesla's reach and influence potential buyers (Gianesello et al., 2017, pp.257-280). The

distinctive nature of Tesla's electric vehicles, creative features, and the company's dedication

to sustainability add to Tesla owners' enthusiasm and advocacy. This organic word-of-mouth

marketing has shown to be highly effective in increasing Tesla's brand awareness and

reputation.

The Media Presence of Elon Musk

Elon Musk, Tesla's CEO and public face has a strong media presence. Musk's charming

demeanour, creative ideas, and active participation on social media sites such as Twitter have

gotten him and the Tesla brand a lot of attention (Sypko, 2022, pp.54-90). His tweets and
 Assessment of Tesla 10

public pronouncements frequently generate headlines and spark debate, thus serving as an

unconventional promotion for Tesla.

Musk's media presence has been critical in increasing public awareness of Tesla's products,

technological achievements, and sustainability activities. It has also aided in shaping the

narrative surrounding electric vehicles and establishing Tesla as an industry leader.

Digital Marketing and Online Platforms

Tesla uses digital platforms and online channels to communicate with its target audience and

give product information (Bohnsack et al., 2021, pp. 59-70). The company's website serves as

a point for prospective consumers to research vehicle types, customize them, view price

information, and submit orders. Tesla also has a social media presence, posting updates,

interacting with customers, and responding to inquiries.

Tesla emphasizes its vehicles' unique features, performance capabilities, and sustainability

benefits in its digital marketing activities. This strategy enables Tesla to reach a worldwide

audience and establish direct contact with potential consumers.

Tesla Service: Over-the-Air Software Updates for a Better Customer Experience

Tesla distinguishes itself from other manufacturers by providing over-the-air software

upgrades. This one-of-a-kind solution enables the firm to continuously enhance car

performance and offer new features long after the initial purchase (Zhu, 2022, pp. 9-20). This

strategy improves the overall customer experience and illustrates Tesla's dedication to

providing continued value to its consumers.

Software Updates over the Internet

Tesla uses robust connectivity and software skills to update vehicle software remotely. These

upgrades include everything from bug repairs and performance enhancements to adding new

features and functionalities. Using over-the-air updates, Tesla can address issues, improve
 Assessment of Tesla 11

vehicle performance, and offer real-time enhancements without forcing consumers to visit

repair centres.

Customer Advantages

i. Convenience and time savings: Over-the-air updates from Tesla eliminate the need for

consumers to plan and visit service centres for routine software enhancements or bug

repairs. Customers can receive updates in real-time, typically overnight or at a time

convenient for them, minimizing disturbances to their everyday lives.

ii. Due to Tesla's commitment to continuous improvement, Customers receive ongoing

updates to improve their vehicle's performance, safety features, and overall user

experience (Li, 2018, pp. 28-49). These upgrades may include the addition of new

capabilities and functionalities that were not accessible at the time of purchase,

ensuring that customers benefit from technology developments even after they have

purchased the car.

iii. Personalization and customization: Over-the-air updates enable Tesla to provide

consumers with customized features and settings. Through software upgrades, Tesla

can add new options, improve existing functionality, and enable personalization based

on client preferences. This customization enhances the ownership experience by

allowing consumers to modify their vehicles to their changing demands.

Engagement and Long-Term Relationship

Tesla's over-the-air software updates help the corporation, and its consumers build long-term

relationships. Tesla keeps customers engaged and delighted even after they make their

original purchase by consistently giving value and improvements (Jiang, 2022, pp. 2896-

2899). This continued connection increases customer loyalty and motivates them to advocate

for the company, which helps Tesla's word-of-mouth marketing and client retention efforts.
 Assessment of Tesla 12

Extensive research and critical analysis

Strategic Level Analysis and Value-Added Strategy

Tesla's strategic goal of becoming an EV market leader has been made possible through a

value-added strategy that combines innovation, sustainability, and customer-centricity.

Tesla's distinctive marketing and operational initiatives, including its product differentiation

strategy and commitment to sustainability, were critical in accomplishing these strategic

objectives.

Tesla Value Co-Creation: Innovative Products, a Flexible Supply Chain, and a

Customer-Focused Approach

Tesla embraces the concept of value co-creation by actively engaging customers in the value-

creation process. Tesla guarantees that clients get the most out of their contacts with the

company and its goods through innovative product development, a flexible supply chain, and

a customer-focused sales approach.

Innovative product development

Tesla's dedication to new product development is essential to its value co-creation strategy.

The company is constantly pushing the boundaries of electric vehicle (EV) technology to

provide improved range, safety, and performance—all highly valued by customers in the EV

industry.

Tesla has improved the range of its vehicles by investing in new battery technology, relieving

concerns about limited driving lengths. Tesla prioritizes customer safety with technologies

like intelligent driver-assistance systems and strong car constructions. Furthermore, Tesla's

emphasis on high-performance electric vehicles has reshaped the industry's perspective of

what EVs are capable of.

 Assessment of Tesla 13

Adaptable Supply Chain

Source: https://www.google.com/url?sa=i&url=https%3A%2F%2Fresearch-

methodology.net%2Ftesla-value-chain-analysis-

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=images&cd=vfe&ved=2ahUKEwj-yb-F-vj-AhWHpicCHS_hBfgQr4kDegQIARBP

Another essential part of value co-creation is Tesla's adaptable supply chain. Tesla can

quickly respond to shifting customer demands and technology improvements by controlling

its supply chain through vertical integration. This adaptability enables Tesla to offer new

features and vehicle updates on schedule.

Tesla can accomplish superior cost control, quality assurance, and timely delivery due to its

strong engagement with suppliers and capacity to integrate essential components, such as

battery manufacture, vertically (Agnihotri et al., 2022, pp.8-23). This, in turn, provides value

to customers by increasing product availability and reliability.

Approach to Customer-Focused Sales

Tesla's customer-centric sales approach is critical to value co-creation. The customer

experience is prioritized by Tesla, which ensures that encounters with Tesla and its products

are positive and suited to individual needs.

Tesla's direct-to-consumer sales model enables a more customized purchasing experience.

Customers can create and customize their vehicles online, making decisions based on their
 Assessment of Tesla 14

interests and priorities. Tesla's sales staff and service centres are well-known for their

expertise and commitment to addressing client queries and issues.

Furthermore, Tesla's Autopilot technology and over-the-air updates significantly contribute to

value co-creation. With its extensive driver-assistance capabilities, the Autopilot system

improves safety and gives a one-of-a-kind driving experience (Agnihotri et al., 2022, pp.8-

23). The ability to constantly improve and personalize the vehicle via over-the-air updates

enables Tesla to answer consumer requests, provide new features, and improve performance

long after the initial purchase.

Theory of Marketing and Operations Management

Tesla's marketing and operations management techniques adhere to well-established theories

and frameworks, albeit with some innovative approaches. The 4Ps model can analyze the

company's marketing practises, while Just-In-Time (JIT) and Total Quality Management

(TQM) principles guide its operations management.

Marketing Techniques: The 4Ps Model

Source: https://www.google.com/url?sa=i&url=https%3A%2F

%2Fwww.marketing91.com%2Fmarketing-mix-of-tesla-motors

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mages&cd=vfe&ved=2ahUKEwiw4_rE-fj-AhUSnCcCHcY5AdwQr4kDegUIARDHAQ
 Assessment of Tesla 15

i. Tesla's innovative products focus on electric car technology, long-range capability,

safety features, and high performance. The company's emphasis on developing

cutting-edge electric vehicles corresponds to the "Product" part of the 4Ps concept.

ii. Tesla's price approach reflects the high value it sets on its products. Tesla vehicles are

more expensive than many typical automobiles, reflecting the sophisticated

technology, range, and performance they provide. The company portrays itself as a

premium brand, with customers who respect sustainability, innovation, and luxury as

priorities.

iii. Tesla's distribution approach departs from the conventional dealership model. Instead,

the company goes directly to the customers, avoiding traditional dealers and selling

vehicles through company-owned showrooms and its internet platform. This direct

distribution route corresponds to the "Place" component of the 4Ps model.

iv. Tesla's promotion technique is distinct from typical advertising methods. Rather than

depending significantly on traditional advertising, the company emphasizes word-of-

mouth marketing and benefits from its CEO, Elon Musk, prominent media presence.

Tesla uses media coverage and social media participation to generate buzz and

enhance brand and product awareness.

JIT and TQM in Operations Management

i. Just-In-Time (JIT) principles are used in Tesla's operations management. By

synchronizing production with customer demand, JIT reduces inventory costs and

waste. Tesla eliminates extra inventory and associated holding costs by implementing

JIT. It ensures that materials and components arrive just in time for production,

decreasing storage needs and increasing operational efficiency. JIT's practices,

however, can offer obstacles, such as manufacturing bottlenecks, which Tesla must

overcome to maintain its growth trajectory.

 Assessment of Tesla 16

ii. Total Quality Management (TQM): Tesla's operations management also adheres to

TQM principles. TQM is concerned with attaining and maintaining high-quality

standards across all operations. Tesla prioritizes quality control, conducting thorough

inspections and testing to guarantee that each vehicle meets its high standards.

Employees are actively involved in the quality improvement process, which fosters a

culture of continual learning and growth.

Marketing and Operations Management Recommendations for Tesla

i. Increase Manufacturing Capacity: The corporation should invest more in extending its

manufacturing capabilities with the increased demand for Tesla vehicles. This

includes expanding production facilities, optimizing manufacturing processes, and

eliminating bottlenecks to ensure efficient and timely car delivery. By increasing

production capacity, Tesla can satisfy rising demand and reduce customer wait times,

improving customer happiness and preserving a competitive edge in the market.

ii. Diversify the Supply Chain: While Tesla's vertical integration model gives the

company control over the supply chain, it also poses operational issues. Tesla should

consider diversifying its supply chain by engaging various vendors for crucial

components to avoid risks and maintain resilience. Diversification can avoid

disruptions caused by supplier issues, reduce reliance on individual suppliers, and

improve flexibility in responding to market variations. A diverse supply chain will

help Tesla adapt to changing conditions while preserving product quality and delivery

efficiency.

iii. Increase Marketing Efforts: While Tesla has relied on word-of-mouth marketing and

Elon Musk's media presence, a more systematic marketing approach could assist the

company in reaching new customers and expanding into uncharted markets. Tesla

should dedicate money to creating focused marketing campaigns that showcase its
 Assessment of Tesla 17

products' unique features, benefits, and long-term viability. This can include utilizing

digital marketing platforms, interacting with potential customers via social media, and

collaborating with influencers to reach specific target demographics. A well-defined

marketing strategy will assist Tesla in increasing brand awareness, generating new

leads, and solidifying its position as a market leader in the electric vehicle market.

SWOT Evaluation

Source: https://www.google.com/url?sa=i&url=https%3A%2F

%2Fswotandpestleanalysis.com%2Fswot-analysis-of-tesla-motors

%2F&psig=AOvVaw1L-

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UKEwiDsJ_K-vj-AhXImycCHZFhB9QQr4kDegQIARB-

Strengths:

i. Tesla is regarded as a pioneer and leader in electric vehicle (EV) technology.

Innovative solutions, such as enhanced battery technology and autonomous driving

capabilities, help the corporation maintain its technological leadership.

ii. Tesla has created an influential and recognizable brand synonymous with

sustainability, innovation, and luxury. Customers respond positively to the brand

image, contributing to customer loyalty and preference for Tesla vehicles.

 Assessment of Tesla 18

iii. Superior Product Performance: Tesla vehicles outperform several other EVs regarding

range, safety features, and performance. The company's emphasis on supplying high-

quality items has resulted in an outstanding performance that customers appreciate.

Weaknesses:

i. High Production Costs: Tesla confronts production cost problems, particularly

compared to traditional automakers. These costs are partly driven by the company's

vertical integration strategy and the necessity for ongoing R&D investment.

ii. Reliance on Elon Musk's Persona: Tesla's success is intimately linked to Elon Musk's

persona. While Musk's public presence has helped the company gain attention and

interest, it may need help if it becomes unduly reliant on his leadership and public

image.

iii. Potential for Production Bottlenecks: While Tesla's vertical integration strategy offers

benefits, it may also result in potential production bottlenecks. Managing the entire

supply chain and manufacturing process in-house can raise operational complexity

and present dangers if not adequately handled.

Opportunities:

i. Global Demand for EVs is Growing: As governments and consumers prioritize

sustainability and clean transportation, global demand for EVs is growing. Tesla is

well-positioned to exploit this trend and increase its market share.

ii. Expansion Potential in Emerging Economies: As EV usage grows globally, emerging

economies provide substantial opportunities. Tesla may deliberately increase its

presence in these markets to capitalize on the rising demand for electric vehicles.

iii. Diversification into Related Areas: Tesla's competence in energy storage and

renewable energy solutions allows for expansion into related areas such as energy
 Assessment of Tesla 19

storage systems, solar power, and grid solutions (Tidd et al., 2020, pp.34-49). This

might assist the corporation in expanding its operations and revenue streams.

Threats:

i. Increasing EV Market Competition: As EVs gain popularity, competition from

established automakers and new entrants intensifies. In the face of increased

competition, Tesla needs help defending its market share and retaining its competitive

advantage.

ii. Regulatory Obstacles: Regulations and regulations governing car emissions, safety

standards, and EV adoption incentives may impact Tesla's operations and market

opportunities. Adapting to changing regulatory landscapes around the world

necessitates careful navigation and compliance.

iii. Potential Supply Chain Disruptions: While Tesla's vertical integration model gives the

business control over the supply chain, it also exposes the company to risks, like as

disruptions in the delivery of crucial components or raw materials. Supply chain

problems like geopolitical events and trade barriers may impact Tesla's manufacturing

and delivery capabilities.

TOWS Evaluation

Strengths-Opportunities (SO): Capitalizing on the growing worldwide demand for EVs by

leveraging technology leadership and a strong brand. Tesla is capable of the following:

i. Continue to spend in R&D to maintain its technological advantage and bring new

ideas to meet changing client expectations.

ii. Expand its global market presence by focusing on regions with high development

potential for electric vehicles.

 Assessment of Tesla 20

iii. In the competitive EV industry, capitalize on its excellent brand awareness and

reputation to recruit and keep customers.

iv. Expand charging infrastructure to meet the increased demand for EVs, improving the

customer experience.

Weaknesses-possibilities (WO): Investing in scaling production and diversifying supplier

networks to lower costs and capitalize on developing market growth possibilities (Zhu, 2022,

pp. 19-29). Tesla is capable of the following:

i. Increase production capacity to satisfy rising demand and realize economies of scale,

lowering production costs and increasing profitability.

ii. Diversify its supply chain by bringing on new suppliers, particularly in emerging

countries, to reduce reliance on individual suppliers and mitigate supply chain risks.

iii. Invest in local manufacturing facilities in emerging areas to take advantage of

regional growth prospects, lower import costs, and boost market competitiveness.

iv. Collaborate with government and industry partners to establish incentives and

infrastructural support for EV adoption and market penetration in emerging markets.

Strengths-Threats (ST): Differentiating from the increased competition using a strong brand

and outstanding product performance. Tesla is capable of the following:

i. To separate itself in a competitive market, emphasize its technological leadership,

superior range, safety features, and performance.

ii. Continue to invest in R&D to remain ahead of the competition and to deliver new

features and capabilities that exceed client expectations.

iii. Build customer loyalty and attract new customers that appreciate sustainability,

innovation, and luxury by leveraging its strong brand reputation.

 Assessment of Tesla 21

Weaknesses-Threats (WT): Reducing reliance on Elon Musk's persona by bolstering the

broader executive team and corporate governance mechanisms. Tesla is capable of the

following:

i. Create a solid succession plan and nurture skilled leaders to facilitate a smooth

transition in the case of leadership changes.

ii. Improve corporate governance practises to encourage transparency, accountability,

and sound decision-making.

iii. Create a diverse marketing and communication plan that emphasizes the knowledge

and contributions of the executive team and other key personnel.

iv. Prepare for anticipated supply chain disruptions by creating strategic relationships,

preserving buffer supplies, or diversifying sourcing alternatives.

Conclusion

Tesla's strategic stance in the automotive and energy industries gives enormous opportunities

for the firm to add value to its operations and marketing. However, the corporation faces

obstacles that must be handled to continue its dominance recommendations, including

expanding on and expanding manufacturing capacity, diversifying the supply chain,

enhancing marketing efforts, and utilizing data for better guidance. These initiatives, backed

by analytical frameworks like SWOT and TOWS, could help Tesla increase its value

generation and gain a competitive advantage.

 Assessment of Tesla 22

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Appendix: Market Performance of Tesla

Market Capitalization: Tesla's market capitalization increased significantly, reaching over $

545.41 billion in early 2023. This valuation places Tesla among the most valuable

automakers in the world, surpassing numerous long-standing industry giants.

Vehicle Deliveries: Tesla's vehicle deliveries have been steadily increasing. The company

supplied roughly 1.8 million vehicles in 2023, substantially increasing over previous years.

This expansion indicates rising demand for electric vehicles and Tesla's ability to acquire a

sizable market share. Tesla's stock price has exhibited tremendous volatility, with major

phases of rise and correction. The company's stock has appreciated dramatically over the

years, garnering the attention of investors and experts.