SWOT Analysis
Overall
Strategy
Porter's Five Force
Financial Position
Miscellaneous Facts
100
Tesla's innovation of the electric car battery is one of their biggest strengths. The Roadster can travel approximately how many miles off one charge?
~220
100
How much money does Tesla plan to spend on advertising next quarter?
Nothing
100
Automobile manufacturing startups in the United States have not been successful since Ford in the 1920's. Which one of Porter's Five Forces best describes this statement? (Answer with the strength and type of force)
A weak threat of new entry.
100
The year that Tesla had its first quarterly profit
2013
100
In 2013, who owned and operated Tesla dealerships around the country?
Elon Musk
200
The Roadster's release was delayed because of weakness in the collaboration between Tesla's executives. One of the specific issues that Eberhard and Musk conflicted on is:
Possible answers: A: Eberhard wanted fiberglass panels, Musk wanted carbon fiber. B: Eberhard approved of the hiring of PR professionals to build publicity. Musk fired them because he thought his presence alone was enough publicity. C: Eberhard wanted to cut costs by using the Lotus Elise's chassis. Musk wanted to change it and lower the door sills to make the car easier to enter
200
What is Tesla's main source of advertising for the company?
The storefront itself is the main source of advertising
200
Tesla has ultimately created two successful models: The Roadster and the Model S. One is an eco-friendly high end sports car; the other is an eco-friendly luxury sedan. Who would you consider competition for this company and is that rivalry between competing firms a strong or weak force?
Strong; Main competition is other renewable energy powered vehicles such as the Nissan Leaf and GM Bolt; Automobile industry is very competitive in general
200
Tesla was able to turn it's first profit in 2013 by reducing these types of expenses by over $300,000 from 2012
Operating Expenses
200
Who is Tesla named after, and what was his or her largest contribution to society?
Nikola Tesla, and he helped contribute to the design of the modern Alternating Current (AC) electricity supply system.
300
List and describe the two biggest obstacles to the adoption of electric vehicles.
1.) Price (historically more expensive; consumers having a difficult time estimating how much their cost of ownership for an electric vehicle would be) 2.) Limited range (People's concerns about driving in places where they would be unable to charge their cars; Tesla models have a much larger range than other electric vehicles)
300
Briefly describe Tesla's manufacturing strategy.
Highly automated prcoesses at a plant in Fremont, CA; Use of eight-ten foot tall robots that could perform up to four tasks: welding, riveting, bonding, and installing a component
300
Is the bargaining power of suppliers weak or strong? Give one example to support your answer.
Weak Possible examples: A.) If Tesla decided to switch suppliers, it could be detrimental to the previous supplier's business B.) Supplier firms must contend with substitute products
300
One of the initial issues in developing the Model S lied in the 500 million dollar cost to develop it. Thankfully, the government's desires for more eco-friendly cars landed the company with a large grant for what amount of money?
$465 Million
300
What brand and model of car was the Tesla Roadster originally designed to resemble?
The Lotus Elise
400
In 2013, what two car models served as Tesla's biggest competition in the electric vehicle industry? How much did each of these vehicles retail for?
Chevy Volt and Nissan Leaf; Both retailed for about $35,000
400
Part 1: This person co-founded Tesla but was later removed by the Board of Directors in 2007? Part 2: Give two reasons why (answer to part 1) was removed, and who was he/she temporarily replaced by?
Part 1: Martin Eberhard Part 2: Eberhard's inexperience as a manager at a major firm contributed to production delay and runaway costs; Eberhard couldn't answer the financial questions of the venture capitalists on Tesla's Board; He was temporarily replaced by Michael Marks, former CEO of Flextronics
400
After analyzing Tesla and the market for these unique cars, is the bargaining power of buyers a strong or weak force? Give an example to support your answer.
Weak Possible examples: A.) Tesla Motors does not sell products in bulk B.) Very unique products (not standard) C.) Very few competitors
400
Many of the initial interested consumers decided not to purchase the car due to the unknown; how much it would cost to charge it at home. To combat this, Tesla installed 6 supercharging stations. The reason only 6 existed in the beginning of 2013 was due to the high cost it took to build one. How much did it cost to build a supercharging station?
$250,000
400
To offset some of the costs of buying the factory to begin producing cars, Tesla used the machinery to produce what car part for what car model?
Battery packs for the Toyota RAV4
500
Investors were concerned about the ability of Tesla to continue it's 2013 success and rising stock price because of one major reason. What is that reason, and what opportunity can Tesla focus on in the future to continue to grow it's market capitalization and prove that it's stock price isn't overinflated?
Investors were concerned because Tesla's volume of sales decreased from May 2013 to July 2013, while its stock price continued to rise. If Tesla can increase their volume of sales to match their market capitalization, they will convince investors that the stock is not overinflated and continue to increase it's market share.
500
Tesla purchased a closed automobile factory in Fremont, California to build the Model S. Purchasing this factory allowed Tesla prepare for the future in three major ways. Name at least two of the benefits Tesla received from this factory.
Possible answers: A: Tesla purchased the factory for $42 million even though it was appraised for $1 billion, helping to cut costs. B: The factory was much larger than Tesla needed to build the Model S, allowing room for growth without purchasing more factories. C: Tesla created a joint-venture with Toyota in which they helped build batteries for the Rav4, providing extra income to help with building their Model S.
500
Is the threat of substitute products a strong, moderate, or weak force? Give two examples of substitutes that could be a potential threat to Tesla.
Weak; Some potential substitutes could be hybrids, public transportation, hydrogen vehicles, etc.
500
Investment analysts were skeptical of Tesla's profits in 2013 due to these two large influxes of revenue:
A one time $10.7 million DOE stock warrant profit and $68 million in ZEV credit sales (warrant revenues would not be repeated, and the sustainability of ZEV credit sale demand was unknown)
500
What were two of the many promises made to American consumers that decided to purchase the TESLA automobile?
Possible answers: A.) Free supercharging network consumers could use for the life of the car B.) Price protection guarantee if you decide to trade the car in within the first three years of ownership C.) Free repairs for the life of the car D.) Free rental car while the owner's car is being repaired
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