Tesla Motors Essay

Words: 1706
Pages: 7

The Global Business Community
The first macroenvironmental factor that Tesla Motors faces is the society and subcultures. In this day in age consumers worldwide have increased their knowledge and sensitivity about its environment. Numerous companies have catered to this need of becoming more environmentally responsible by offering products that are “green” or environmentally friendly. This new growth amongst people and organizations alike of becoming more environmentally conscious has created an opportunity for Tesla Motors with its brand of product. Tesla Motors produces and sells fully electric cars as well as electric vehicle powertrain components that give off no tailpipe emissions. Also Tesla motor vehicles cut CO2 emissions in half
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Another technological advantage Tesla’s has is its affordability in fueling the vehicle with electricity rather than gas, making it a sound financial decision for consumers. “Tesla vehicles cost as little as $5 to charge; equivalent to $0.02 per mile. Alternatively, a gasoline-powered car that is rated at 20 mpg cost $0.15 per mile” (Musk, 2012). Tesla’s has a competitive advantage in regards toward its technology used within its product. However, the main concern is how long Tesla Motors will be able to hold its competitive advantage in regards toward its technology over time.
The Market Heading into the microenvronmental analysis of the paper the first factor that Tesla Motor’s faces is the collaboration. Collaboration with other companies can be beneficial and viewed as a positive for both parties if performed properly. With Tesla Motors’ technological advancements for its electric cars the company has teamed up with major automobile company Toyota towards supplying the company with control systems, batteries, and motors Toyota’s new electric vehicle the RAV4 SUV (Bullis, 2012). Tesla has also recently agreed to provide similar electric car supplies for Mercedes-Benz in a similar deal (Bullis, 2012). The collaboration microenvironmental factor can be turned into an opportunity for Tesla Motors as leverage. If the company manages to not succeed as an independent