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Tesla Motors Situation Analysis

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Introduction
This report examines factors impacting performance and planning for Tesla Motors and outlines current financial situation for the company. The following topics are discussed in this report.
Background about Tesla Motors
Case study discussion
Situational analysis for Tesla
Financial situation.
Summery
Background
Tesla Motors is specialized in manufacturing electric vehicles and powertrains components related to the electric vehicles. Beside that ,Tesla Motors is owning network of supercharger stations and service centers. The company is focusing on selling directly to the customers to enhance customer experience and promote the company brand. Currently, the company is manufacturing and selling its second generation of electric vehicles named Model S sedan. Tesla Motors sold over 25,000 Model S vehicles in North America and Europe as of December 31, 2013.The company is planning to commercialize Model X crossover in spring of 2015 and planning to build its third generation of electric vehicle called “Gen III” after three years.

Case study analysis
The case study discussed the situational analysis and company strategy for Tesla Motors. The analysis can be summarized, using SWOT analysis, in table below.
Strengths
Vertical growth
Horizontal growth leader in manufacturing of electric vehicle and the powertrains components for electric vehicles
Customers focused.
Green technology

Weaknesses lack of profitability limitations and problems for battery (slow recharge, range anxiety, decreasing battery capacity over the time ,heating and failure)
Need for high research and development expenses

Opportunities
Emerging market for electric vehicles

Threats
Competitor
economic slowdown
Alternative power technologies...

... middle of paper ...

...The company automotive sales for 2013 increased to $1,997,786 from $385,699 for 2012.

Tesla Motors
Industry
Sales (TTM) vs TTM 1 Yr. Ago
387.23%
35.72%
5 Year Sales Growth
167.35%
10.89%

Summary
Although Tesla Motors has great potentials to be the vanguard in emerging electric-based vehicles market , Tesla Motors needs to address challenges associated with strong competition, technological advancement and financing its operations.

References:
Peter Valdes-Dapena. (2013, May 9), Tesla : Consumer Reports' best car ever tested. CNNMony. Retrieved from http://money.cnn.com/2013/05/09/autos/tesla-model-s-consumer-reports/ TSLA Ratios.(n.d). Investing.com. Retrieved from http://www.investing.com/equities/tesla-motors-ratios Tesla Motors, Inc. (2013). Annual report. Retrieved from http://ir.teslamotors.com/secfiling.cfm?filingID=1193125-13-96241&CIK=1318605
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