Tesla Motors Strategic Analysis Essay

Words: 4466
Pages: 18

Tesla Motors
Strategic Analysis

Prepared by:
Lexen Beran
Brenna Hayes
Travis Heidemen
Jenna Hughes
Jake Latimer

In Partial Fulfillment
Of the Requirements For:
MANGT 595: Business Strategy
M/W/F at 12:30pm




1


Table of Contents
Table of Contents…………………………………………………………………...……2
Executive Summary……………………………………………………………………...3
Introduction………………………………………………………………………………4
External Analysis………………………………………………………………………...5
Internal Analysis…………………………………………………………………………8
Strategic Challenges………………………………………………………………….…10
Strategic Recommendation……………………………………………………….……11
Implementation Plan……………………………………………………………...……13
Conclusion………………………………………………………………………………14
Bibliography……………………………………………………………….……………15
…show more content…
This is reflected by a Net Income of $294,040 in 2014, which is a
substantial improvement from the $74,014 that was recorded the year prior. Total
revenues have been steadily increasing from 2012 to 2014 with total revenues of
$413,256 , $2,013496 and $3,198,356 respectively. Tesla has also started investing more
heavily in Research and Development. In 2012 only $273,978 were being allocated to
R&D and by 2014 costs were increased to $464,700.
Issue Statement
Major things that are hindering Tesla financially are the regulations in certain states like
New Jersey stating that automobiles cannot be directly sold to consumers, causing
Tesla’s unique retailing strategy to halt the growth and adoption of models in select
markets where their competition is currently making progress. Other factors leading to
the financial burdens are highly competitive environment, costly high-end production
supplies and brand loyalty.




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External Analysis
Industry Overview
Tesla presently is a participant in the automotive industry. The automotive industry has
been a major player in the national economy since the 1920’s when the production of
automobiles exploded, starting with Ford motors. Since then, the auto industry has
progressed to maturity life cycle stage because of slowed industry growth, and as result
stronger