Swot Analysis Of Tesla

Market Position
Tesla is active in the luxury, long-range electric automobile industry. It’s a market that is distinct from both the market for less expensive electric vehicles and the market for luxury gas-powered vehicles. It also does not only sell cars but it builds out the entire infrastructure necessary to support the operation of those cars. It developed a network of superchargers, battery swap stations and service stations. Up till now both model S and model X operate in the long-range electric vehicle market. Given its price, the cars are considered luxury cars. This market segment forms nearly half of the auto industry’s profits while only making up just 10 % of its unit sales (forbes.com).

There isn’t a lot of competition in this

First of all the cars of Tesla and its competitors have electric engines. Secondly, we’re talking about well-equipped luxury cars. They target successful & eco-friendly people. Moreover they want to differentiate themselves of the stereotype of the electric vehicle that has a low driving range and low performance.

If we look at points-of-difference, we have to stress Tesla’s built-in software. The software inside the car automatically updates in order to make sure that the car has the latest technology on board. It also tries to differentiate itself by making their consumers feel trendy. This is possible due to the continuous focus on innovation by Tesla.

Product Life Cycle
Tesla’s cars are positioned in the beginning of the growth stage of the product life cycle. The growth stage is a period of rapid market acceptance and increasing revenues. Tesla’s is reinvesting most of its profits back into the company in order to achieve lower production costs in the future. In the growth phase sales are rising and the market is not yet saturated (Kotler & Armstrong, 2014). As we see in the table below we notice a clear rise in Tesla’s revenue during the last 5