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Brand Analysis: Tesla’s strength, weaknesses and opportunities




Tesla is an America electric vehicle & clean energy company, headquartered in Palo Alto, California. It deals in electric cars, battery energy storage from home to grid-scale, solar roof tiles, solar panels, etc. Tesla led the plug-in market and the battery electric car passenger segment with the highest sales in 2020. The company captured sixteen per cent of plug-in market (which includes plug-in hybrids) and twenty three per cent of battery electric (entirely electric) market.

Tesla was founded in July 2003 as Tesla Motors by Martin Eberhard and Marc Tarpenning. The company’s name is a tribute to electrical engineer and inventor Nikola Tesla. Elon Musk, who was the major contributor in the initial funding of the company, has served as its CEO since 2008.

Brand Scorecard

Tesla is one of the leading companies in the automobile industry with the ability to build entirely electrically powered vehicles in house. The brand serves the rich and affluent sections looking for electric premium luxury/sports cars.

Tesla’s strengths include:

  • ‘The Roadster’ – first fully electric sports car developed by Tesla
  • Other manufacturers like Toyota bring in supplies from Tesla
  • Compelling technological expertise in electric transmission and drive train domain
  • Ability to develop vehicles entirely along with the required sub-assemblies
  • The present-day platform developed for Model S can be used for any future model they ideate, including the future crossover model
  • Tesla is a stalwart in electric cars, owing to their improved brand image and brand equity over the years

Some of Tesla’s weaknesses & threats include:

  • Higher cost of production as the company manufactures the vehicle entirely in-house including the sub-assemblies thereby economies of scales are not incorporated
  • Their competitors who sell vehicles powered by combustion engines have comparatively lesser price
  • Concentrated heavily in western countries
  • The company’s competition is against a well-rooted technology of combustion engines and also Tesla’s technology might take time for masses to afford and adopt.

Opportunities for Tesla:

  • Exemption of duties and other support from government all over the world for ecofriendly vehicles
  • Reduction in costs with improvement in quality control processes
  • Entering newer markets that are still adopting electric cars like Asia, where the potential is enormous


Tesla’s CEO Elon Musk said that all future transport will be electric with an exception to rockets. The company definitely seems to be paving its way in the future.



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