Introduction

Tesla, Inc. is an American company specializing in electric vehicles and clean energy. Founded in 2003 by engineers with the goal of outperforming gas-powered cars, Tesla is now a leading player in the automotive industry. Under the leadership of CEO Elon Musk, the company has not only popularized electric vehicles but has also created energy storage solutions and solar products. Tesla's groundbreaking technology and commitment to sustainability are transforming transportation and energy.[1]

1. Tesla's Mission

Tesla's mission is to accelerate the global transition to a sustainable energy scheme. In pursuing this mission, Tesla strives to develop high-performance electric vehicles, innovative energy storage solutions, and solar products to offer sustainable alternatives to fossil fuels. Through its commitment to innovation and sustainability, Tesla has established itself as a pioneer in electric vehicles and renewable energy, and continues to push the boundaries of green technology.[2]

2. Tesla's Vision

According to Tesla "to create the most compelling car company of the 21st century by driving the world's transition to electric vehicles.", Tesla is looking to become the most attractive car brand of the 21st century through electric vehicles. It aims to demonstrate that a sustainable future can be exciting, not by focusing on speed, but by offering attractive electric cars with innovative designs and an exhilarating driving experience. It will invest in outstanding battery technology and establish extensive charging networks. In addition, Tesla will create a clean energy ecosystem that will power both homes and vehicles using solar panels.[3]

3. SWOT analysis

SWOT analysis is a tool to recognize the strengths, weaknesses, opportunities, and threats to a company or project, allowing for the development of a strategic plan and increased competitiveness.[4]

a. Forces

Tesla dominates the electric vehicle industry because of its commitment to renewable energy. Tesla's commitment to sustainability goes beyond simply creating stylish cars. Their meticulous engineering and innovation prioritize driver comfort. Tesla's quest for clean energy and profitability has earned the trust and admiration of the market.[5]

b. Weakness

One of Tesla's main challenges is its limited presence. The company only sells its cars in a handful of countries, and its charging network is still developing. This limits Tesla's reach and can deter potential consumers from buying it.

Another challenge for Tesla is its high-end product lineup. Tesla cars are some of the most expensive on the market, making them inaccessible to most consumers. Tesla has acknowledged this problem and announced that it will launch a more affordable car, but it remains to be seen if this will be enough to solve the problem.

Finally, Tesla needs to make sure it has a solid succession strategy. Elon Musk is the face of the Tesla brand, and his departure could have a negative impact on the company. Tesla has already started training senior executives to succeed it, but there is still work to be done.

c. Opportunities

Tesla's self-driving technology, known as Autopilot, is highly regarded for its safety and convenience. It has gained popularity among consumers and investors. Tesla is continually improving its technology to pave the way for autonomous roads.

Environmental awareness benefits Tesla. As demand for electric vehicles outpaces gas-powered cars, Tesla is well-positioned to deliver clean and innovative transportation solutions.

Tesla's control over battery production could be a game-changer. By manufacturing its own cells, the company can reduce costs, increase profit margins, and create job opportunities.

Thanks to its cutting-edge technology, environmental commitment, and forward-thinking production strategy, Tesla has a bright future in the electric vehicle market. It has the potential to redefine transportation for a greener, more self-reliant world.

d. Threats

Increased competition poses a serious threat to Tesla. Many major automakers are investing heavily in electric vehicles. These companies have resources and experience in the automotive industry, giving them an edge over Tesla.

New technologies are also a threat to Tesla. Alternative propulsion technologies, such as hydrogen fuel cells, are being developed. If these technologies become viable, they could compete with Tesla's electric vehicles.

Tesla needs to ensure its long-term sustainability. The company needs to produce vehicles profitably and support electric vehicles around the world. If you fail to meet these challenges, you risk losing your leading position in the market.

4. Marketing Involvement Based on This SWOT Analysis From Tesla

Tesla has the potential to maintain its success in the industry. However, there are some issues that need to be addressed to ensure competitiveness and profitability. For example, improving the global presence and investing in research and development. This analysis shows the growth potential of the global automotive market despite the competition.

This analysis suggests ways for Tesla to improve its performance. Expand into foreign markets, invest in product innovation, and diversify the supply chain.

5. PESTEL Analysis [6]

A PESTEL analysis is a tool used to examine macro-environmental factors that affect an organization. It assesses political, economic, social, technological, environmental and legal factors. This analysis identifies threats and weaknesses for a SWOT analysis.[7]

a. Policies

Important political factors for Tesla and the automotive and energy sectors are government incentives, global trade agreements, and political stability. Tesla can improve its financial performance through government incentives and reducing carbon emissions. The expansion of free trade agreements allows Tesla to expand internationally.

b. Economic

Tesla needs to focus on three key areas to continue to dominate the market for electric vehicles and renewable energy solutions:

· International expansion: Tesla must continue to expand its operations into new countries and regions to meet the growing demand for electric vehicles and renewable energy solutions around the world.

· Innovation: Tesla must continue to invest in product innovation to stay on the cutting edge of technology and provide consumers with better and more affordable products.

· Supply chain: Tesla needs to diversify its supply chain to reduce supply chain risks, such as relying on a small number of suppliers and volatile raw material prices.

c. Social

Tesla executives need to implement strategies to take advantage of the opportunities presented by external sociocultural factors. These factors include:

· The growing popularity of low-carbon lifestyles, which favors electric vehicles like Tesla's.

· The growing preference for renewable energy, which is boosting demand for Tesla products such as solar panels and batteries.

· Improving the distribution of wealth in emerging markets, which opens up new growth opportunities for Tesla.

d. Technological

The following external technology factors may have a significant impact on Tesla, Inc.'s automotive business:

· The high rate of technological change can be both an opportunity and a threat to Tesla. On the one hand, Tesla is at the forefront of technological innovation in the automotive industry. On the other hand, Tesla needs to be able to keep pace with technological change to remain competitive.

· Increasing automation in businesses can be an opportunity for Tesla, as it could allow the company to reduce production costs and improve the quality of its products.

· The growing popularity of online mobile systems may be an opportunity for Tesla, as it allows the company to connect with its customers in a more direct and personalized way.

e. Ecologies

The following external environmental factors represent opportunities for Tesla:

· Climate change is a growing concern for consumers and governments around the world. This is creating a growing demand for electric vehicles and renewable energy solutions, such as those offered by Tesla.

· Expanding environmental programs, such as government incentives for electric vehicles, is also creating opportunities for Tesla. These programs can help reduce the costs of electric vehicles and make them more accessible to consumers.

· Stricter waste disposal standards may also create opportunities for Tesla. For example, stricter emission standards for gasoline-powered vehicles could lead to an increasing demand for electric vehicles, which are more environmentally friendly.

f. Legal

The following external legal factors may have a significant impact on Tesla's business:

· Health and safety laws and regulations may affect the development and production of Tesla vehicles. For example, pollutant emissions regulations may limit the technologies that Tesla can use in its vehicles.

· Consumer rights laws and regulations may affect how Tesla interacts with its customers. For example, warranty laws may require Tesla to offer longer or more comprehensive warranties on its products.

· Equal opportunity laws and regulations can affect Tesla's corporate culture. For example, equal pay laws may require Tesla to pay its employees fairly, regardless of gender or ethnicity.

· Advertising laws and regulations can affect how Tesla markets its products. For example, misleading advertising laws may require Tesla to be more transparent about the features of its products.

6. PORTER Analysis

a. Current competition

Even though the electric car market may seem crowded at first glance, Tesla faces surprisingly limited competition when it comes to high-end electric vehicles. This niche segment remains largely unchallenged, with many premium brands offering only one or a handful of electric models. In contrast, Tesla presents itself as a dedicated manufacturer in this field, focusing on luxury and cutting-edge technology (Wagner, 2019).

Even though traditional automakers like Chevrolet, Hyundai, and Volkswagen offer electric models, they fall far short of Tesla's offering in terms of high-end features and technological innovation.

This lack of direct competition in the high-end electric segment unlocks immense potential for Tesla. Even though the overall electric car market still accounts for only a modest global share of 1.8%, its rapid growth trajectory bodes well for Tesla's continued success in this lucrative niche (EEI, 2019).

b. Suppliers' bargaining power

In the electric car segment, the bargaining power of suppliers remains low for two main reasons. First, companies like Tesla rely heavily on in-house technological advancements and innovation. Take batteries and motors, the heart of electric vehicles: Tesla manufactures these crucial components in-house, minimizing dependency on external suppliers.

Secondly, the limited number of electric car manufacturers creates a buyer's market for suppliers. Since few large customers are looking for their products, suppliers have less leverage in negotiations. This limited demand, coupled with Tesla's vertical integration strategy, further weakens suppliers' bargaining power, placing the advantage in the hands of electric car manufacturers (Chocteau et al., 2011).

c. Customers' bargaining power

Electric car buyers have low leverage. Few competitors and innovative products limit price negotiation. With fewer choices and high switching costs, electric car companies hold the upper hand.

d. The Threat of Substitutes

Electric vehicles face a mixed threat from substitutes. While they disrupt gasoline cars, biofuels offer a potential long-term alternative. Biofuel adoption, particularly in China as per Thomas (2009), could be a significant hurdle. However, the ongoing development of biofuel replacements suggests this threat might lessen in the long run.

e. The threat of new entrants

Entering the electric car industry presents significant challenges. High investments are required in technology, innovation, and skilled labor. Building manufacturing facilities and navigating complex production processes add further hurdles. Beyond technology and capital, the expertise needed is scarce globally, making it even harder for new companies. However, the low market penetration of electric cars (only 1.8% globally) suggests a potential opportunity for new entrants to fill the gap.[8]

7. BCG Matrix for Tesla

The BCG matrix, or growth-market share matrix, is a strategic analysis tool that allows you to

Evaluate a company's portfolio of products or activities. It is based on two axes: market growth and the company's relative market share.[9]

Table 1: BCG Matrix [10]

Star

Dilemma

· Tesla Model 3

· Tesla Solar Panels

· Tesla Semi Trailer

· Tesla Roadster

· Tesla Energy

Cash Cow

Dead weight

· Model 3: Best-selling electric car in the U.S. with a market share of over 40%

· Model Y: 21% market share in the small SUV segment in the U.S.

· Tesla Solar Products

· Tesla Energy Products

8. Tesla's Strategic Marketing

a. Tesla's SAR

From a BCG matrix perspective, Tesla's two main strategic business units present a contrasting picture. The automotive sector stands out for its strong presence in the fast-growing high-end electric vehicle market. To maintain its leadership position, Tesla must continue to invest in innovation and consider launching more affordable models.

On the other hand, Tesla's energy generation and storage segments face a dilemma. Despite a decent market share and growing demand for renewable energy storage solutions, competition is intense. To gain a larger market share, Tesla needs to develop breakthrough products that deliver exceptional efficiency and cost-effectiveness. In addition, strategic partnerships could accelerate growth and provide access to a wider market.[11]

b. Targeting

With the launch of its first models in 2017, the organization's main focus has been on reaching out to a clearly defined target audience, which meets the following set of requirements:

A wealthy clientele; Have a penchant for technology and novelty; Pioneers who wholeheartedly adhere to the fundamental principles of the brand, especially in the context of environmental preservation.[12]

c. Positioning

At present, the aforementioned company is among the most esteemed and important establishments in the global sphere, successfully capturing a significant share, about 14%, of the plug-in car market, thus consolidating its influential presence in this market. In addition, this influential organization also holds an impressive market share of 21% in the highly competitive and growing battery electric vehicle market, illustrating its dominant position and substantial impact on this specific market segment. It is worth mentioning that the aforementioned company has effectively used a brand positioning strategy that is deeply rooted in the principles of preserving and safeguarding the Earth, emphasizing its commitment to environmental stewardship and sustainability. This strategic approach, with a focus on conserving the planet, is at the very heart of Tesla's brand positioning strategy, underscoring the company's unwavering commitment to preserving and protecting the global ecosystem and its resources.[13]

9. Tesla's Marketing Mix

The marketing mix is a set of tools and techniques used by a company to achieve its marketing goals. It is traditionally divided into four main components, known as the 4Ps (Product, Price, Place, Promotion).[14]

a. Tesla Products

Tesla has a presence in the automotive, energy storage, and power generation markets. Cost-effective products provide value that customers pay for. The company uses product development to achieve its business goals. New product lines are being added gradually.

· Vehicles

· Powertrain, Batteries and Other Electric Vehicle Components

· Batteries, energy storage, charging

· Solar Panels

b. Distribution at Tesla

The locations used to reach customers are considered in this aspect of the marketing mix. The company distributes or sells its products through these sites. Tesla, Inc. is expanding its product lineup, but the geographic component of its 4Ps remains unchanged. The company may add more locations as it grows, such as through acquisitions or new business. In the case of Tesla, the following sites are affected:

· Company-owned stores and galleries

· Official company websites

· Company-owned service centers

· Charging stations

c. Tesla's Communication

Tesla is considering marketing communication strategies and tactics. These methods help Tesla control and shape customer expectations and its corporate brand. Tesla's promotional mix includes various components, ranked by importance in the automotive and energy solutions sectors.

• Viral Marketing (Most Meaningful)

• Personal Sale

• Public relations

• Sales Promotions

• Direct Marketing

d. Tesla Price

Tesla's pricing aligns with their goals for a premium brand and profitability from small-scale production. These prices have an impact on profits and customer perception. Tesla uses different pricing strategies.

· Premium Pricing Strategy

· Market-Oriented Pricing

Bibliographies

[1] "About," Tesla. Accessed: January 7, 2024. [Online]. Available on: https://www.tesla.com/fr_fr/about

[2] "TESLA - Top Marques Monaco", https://www.topmarquesmonaco.com/. Accessed: January 7, 2024. [Online]. Available on: https://www.topmarquesmonaco.com/exhibitor/tesla/

[3] D. Pereira, "Tesla Mission and Vision Statement." Accessed: January 7, 2024. [Online]. Available on: https://businessmodelanalyst.com/tesla-mission-and-vision-statement/

[4] B. F. Création, "The SWOT: the strategic analysis tool to develop your business | Bpifrance Création". Accessed: January 7, 2024. [Online]. Available on: https://bpifrance-creation.fr/encyclopedie/letude-marche/determiner-sa-strategie/swot-loutil-danalyse-strategique-developper

[5] « The SWOT Analysis of Tesla | EdrawMax", Edrawsoft. Accessed: January 7, 2024. [Online]. Available on: https://www.edrawmax.com/article/swot-analysis-of-tesla.html

[6] "Top 5 Flowchart Makers to Create Flowcharts", Edrawsoft. Accessed: January 7, 2024. [Online]. Available on: https://www.edrawsoft.com/fr/article/tesla-pestel-analysis.html

[7] G. Reznowski, "LibGuides: Industry Research: PESTEL Analysis". Accessed: January 7, 2024. [Online]. Available on: https://libguides.libraries.wsu.edu/c.php?g=294263&p=4358409

[8] T. text provides general information S. assumes no liability for the information given being complete or correct D. to varying update cycles and S. C. D. M. up-to-D. D. T. R. in the text, "Topic: Tesla," Statista. Accessed: January 7, 2024. [Online]. Available on: https://www.statista.com/topics/2086/tesla/

[9] "What is the BCG Matrix? Definition, Examples, and Tips [2023] • Asana". Accessed: January 7, 2024. [Online]. Available on: https://asana.com/fr/resources/bcg-matrix

[10] The4, "Tesla, Inc. BCG Matrix Analysis (TSLA)," dcf-fm. Accessed: January 7, 2024. [Online]. Available on: https://dcf.fm/fr/blogs/blog/tsla-bcg-matrix

[11] « Complete bcg matrix competetive analysis for medtronics | Business & Finance homework help". Accessed: January 7, 2024. [Online]. Available on: https://www.sweetstudy.com/files/casestudy2-bcgcpmandalternativestratgies-task6710.doc

[12] "Tesla and its marketing strategy by Elon Musk". Accessed: January 7, 2024. [Online]. Available on: https://www.marketing-etudiant.fr/cours/t/strategie-marketing-de-lentreprise-tesla.php

[13] S. Hodgson, "Tesla Marketing Strategy, Segmentation, Positioning and Targeting," Fabrik Brands. Accessed: January 7, 2024. [Online]. Available on: https://fabrikbrands.com/tesla-marketing-strategy-segmentation-positioning-and-targeting/

[14] B. F. Création, "The Marketing Mix, Actions to Win Customers | Bpifrance Création". Accessed: January 7, 2024. [Online]. Available on: https://bpifrance-creation.fr/encyclopedie/developper-lactivite-son-entreprise/vendre/mix-marketing-actions-gagner-clients