Tesla External Factors

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There are four major external factors that are influencing Tesla and the way it does business. The social force of the market environment is the demographic characteristics of the population of potential consumers and its values (Crane et al.,pg.81,2014). The rise of environmental concerns and the price of gasoline have motivated some consumers to seek alternatives to gasoline powered vehicles. The economic factors such as income, expenditures and resources affects the number of electric vehicles that are wanted.The level of consumer income, categorized as gross,disposable and discretionary, will dictate the quantity of high-end vehicles will be purchased. Technological invention or innovation from applied science and engineering research As well, the delivery of the Model S compared to the Model 3 has improved with the Model S having a bigger Cargo capacity and more seating available than the previous sedan. Model S has also won Car of the Year in 2013, and was reported that they met the expectations of the consumer reports’ test scale and beyond. The safety of the Tesla’s vehicles have also been reported to be one of the best, if not the best in America. Thus, consumers should not worried about the complications of EVs and the potential hazards it poses to drivers. Tesla, is a company that goes above and beyond to satisfy consumers’ needs while providing sustainability in the environment which is a reason why all of their vehicles would not compromise on the quality of the products used in building the car for the sake of making Consumers still seems to be skeptical in the idea of purchasing an EV especially when the brand, Tesla, is still relatively new and the lack stores for consumers to evaluate the vehicles personally. Also, Model S, is rather expensive, costing about $100,000 compared to other electric vehicles such as Chevrolet’s Chevy Bolt. As we move into the world of technology and software, digital security poses a threat on vehicles like Tesla’s since the ability for hackers’ to obtain data from users will become relatively easy if Tesla does not consider implementing better security features to its

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