W3webschool Blog

W3Webschool Blog

Unlocking Opportunities: A Holistic Study on SWOT Analysis of Tesla

The heartiest welcome to the path to unlocking the secrets of the dynamic business world of Tesla, which is popularly known for its innovation in the vehicle industry. In this blog post, I will discuss thoroughly the challenges that this car manufacturer faces while formulating various business strategies with the help of a SWOT Analysis of Tesla. Moreover, the strengths, weaknesses, opportunities and threats will also be revealed. 

Tesla has revolutionized the electric car market under the visionary leadership of Elon Musk. As I dive into this in-depth assessment, my primary motto is to crack the codes behind Tesla’s massive success and go through the issues that might arise in the future. From Tesla’s advanced automotive technology to its unique business model, this leading multinational electric car company remains one of the potential motivational entrepreneurs. 

Come and join me in the journey of uncovering the future possibilities of Tesla towards long-lasting sustainable innovation with the in-depth SWOT Analysis of Tesla. Let’s hop on this journey together, where each piece of information reveals a new idea for future electric energy car industry advancements.

Table of Contents

Overview of Tesla

SWOT Analysis of Tesla

The American multinational Electric car manufacturer company Tesla Inc. has been conquering the global car industry since 2003. Martin Eberhard & Marc Tarpenning are the two founders of this multinational company. According to the annual report of the company, Tesla has earned a market capital of $789.89 billion. 

This leading battery-electric car brand has a market share of approximately 5.03% as of January 2023. As per the reports of Starista, Tesla earned a market revenue of 96,773 million US dollars in 2023, which highlights the massive growth in annual business revenue. The leadership of Elon Musk is also viewed as an influential factor in this rapid revenue growth and business success. 

Are you awestruck by the stunning models of Tesla like Model S, Model 3, Powerpack, megapack, Model X, and Model Y? Tesla Inc. adopted clean energy and used lithium battery cells when they offered their first automobile, the Roadster.

What Makes Tesla Inc. Unique?

Now that you know what Tesla deals with, I will uncover the different features through the SWOT Analysis of Tesla that make this electric car manufacturing company unique!

tesla gigafactory

Gigafactories: Currently, Tesla has 6 Gigafactories, and they are located in California, China, Texas, New York, Germany, and Nevada. The Gigafactories of Tesla boost streamlined production, allowing a functional scaling of electric cars and offering renewable energy production across the globe. You will be surprised to know that Gigafactory Nevada produces billions of cells yearly, making this the world’s largest volume electric motor plant.

supercharger network

Supercharger Network: You have also heard of Tesla’s largest supercharger network, which has more than 50,000 supercharges. This unique feature has made Tesla the largest fast-charging network around the globe. Just plug in the charging connector to your car and get set to go! Supercharging networks encourage long-distance travelling and boost the adoption of EVs on an international level. 

Autopilot Mode tesla

Autopilot Mode: Have you ever come across the buzz term “Autopilot mode” of Tesla? This mode is grabbing a lot of attention and causing business revenue to grow rapidly. This stunning mode comes with advanced AI algorithms and sensors to allow partial autonomous driving power, increasing the safety of the EV. 

SWOT Analysis of Tesla

A thorough SWOT analysis of Tesla is very effective in developing new business strategies and modifying the previous ones, and I have illustrated them below to offer you a clear grasp of the company!


Let’s take a glimpse at the exclusive strengths in this SWOT analysis of Tesla, highlighting what helps Tesla to become one of the largest automotive electric car manufacturers in the world, famous for its visionary leadership and product innovation. 

Strong Brand Value & Market Captalization

As of when I wrote this blog post, Tesla had approximately $789.89 billion as market capital, shaping it to be the ninth most valuable organization in the world. 

In 2023, Tesla Inc. had a brand value of $67.66 billion, reflecting a decrease in the rate of total brand value than the previous year! The business is still in the safe hands of Elon Musk and a large number of investors are expecting a long-term growth potential in this company.

Strategic Brand Positioning

Economic downturns are a major business challenge nowadays but Tesla wins the game due to their business endurance and flexibility. I have illustrated the revenue growth of Tesla above highlighting the business growth curve and showing the strong brand positioning. 

Tesla has positioned itself as the largest electric vehicle manufacturer in the world showcasing the exceptional driving experience of customers.

Best Automotive Company

Tesla has secured the second position as the best-selling electric vehicle manufacturer across the entire world, with BYD of China being the first one. The total sales revenue of Tesla was 96,773 million US dollars, and it delivered more than 1.8 million units of EVs in the financial year 2023.

You must have noticed the drastic change in the number of car deliveries which is the main reason for their increased business profit. Tesla Inc. has become the 9th most valuable automobile company in the world according to their market value.

Robust Marketing Strategies

Tesla has a unique retail sales strategy called ‘Service Plus’, which incorporates this brand with different service centres. Robust social media engagement is another major digital marketing strategy that Tesla has adopted and boosted their brand visibility rapidly over diverse online channels. 

Tesla has initiated Twitter marketing as Elon Musk, the CEO of Tesla has tweeted about their new car launches, and their innovative features and has created a huge buzz over these social media platforms. 

YouTube marketing strategies are also another vital digital marketing strategy that Tesla has adopted to reach their potential customers and achieve huge business success. Their “Hot Single Robots In Your Area” marketing campaign on YouTube has gained huge success during Valentine’s week.

The Best Employer Organization

Tesla is the No.1 employer in America for prioritizing skills over academic qualifications with the leadership of CEO Elon Musk. Tesla hires a huge number of individuals based on their innovative skills. For the last few years, Tesla has been appearing in the list of Forbes’ Top Employers’ in a diverse range of sectors.

Best in Innovations

tesla solar roof

The Product designs of Tesla are top class and this EV manufacturing company has been incorporating a lot of brainstorming throughout the process of designing and manufacturing their cars to offer an exclusive level of comfort to potential clients.

The major step Tesla has taken to reduce its carbon footprint by launching its ‘Tesla Solar Roof’ in the emerging solar energy industry. ‘Tesla Powerwall’ is another major innovative product of Tesla that enables users to store power through solar panels by installing them in their homes.


Now, inspecting the weaknesses of this brand in the SWOT analysis of Tesla, I am identifying the areas where Tesla lacks and needs enhancement to boost business revenue.

Manufacturing Complications

Tesla has been there in the news headlines for an extended period of time due to the accidents that have resulted from an autonomous driving system of EVs. High levels of innovation lead to higher rates of mechanical malfunctions and manufacturing complications. Due to this, you might have noticed that Tesla is experiencing some sort of delays in manufacturing, distribution and product launching.

Product Price & Affordability

The premium pricing strategy of Tesla has resulted in setting higher prices for their electric vehicles which has resulted in limited access of buyers. This price competitiveness has always been a challenging factor for Tesla when it comes to capturing vast amounts of market share in different price-sensitive markets.

Though Elon Musk has highlighted the fact that their major motto is to sell affordable electric cars to a wide range of customers, the price of Tesla’s basic cars starts from $43,990, which is a major investment for buyers.

Battery Shortage

I have also identified another major weakness while assessing the SWOT analysis of Tesla which is the Shortage of batteries in selling battery electric automobiles. This lowers Tesla’s opportunity to meet the rising demand for electric vehicles and leads to slower business growth.

Due to over-dependence on batteries, Tesla is facing major business problems in selling their battery-led electric vehicles in the long run.

Employee Turnover

Though the visionary leadership of Elon Musk acts as an effective strategy in filtering and hiring top talents, the employee turnover rate of Tesla has also increased more than before! Tesla has an average annual employee turnover rate of 12 to 14% in the United States, which is an increase from the previous year’s 9%. This highlights the fact that Elon Musk’s tendency to terminate employees who violate the company rule or disappoint him, even if the business is in danger.


Let’s look at the various opportunities Tesla might have through the in-depth SWOT analysis of Tesla below;

In-house Battery Production

Tesla could initiate an In-house battery production technology unit to increase their battery production and overcome the issues related to batten shortage. Tesla has been doing business with Panasonic which is the major supplier of batteries currently. This step can become a big game changer for Tesla in boosting the rate of manufacturing and reducing the cost of production.

Environment-Friendly Vehicles

You must have noticed that there is a major shift towards using environmentally friendly elements among customers of today. People nowadays have become more concerned with the environment increasing the demand for more electric cars rather than fuel cars. Tesla can take this as a major opportunity to drive huge business sales highlighting the need for reducing gasoline-driven vehicles.

Market Expansion

Tesla must tap into the unexplored market as a measure of global expansion. The annual turnover report of Tesla highlighted that it has sold more units of electric vehicles in two of the largest car markets, the US & China. However, the global activities of Tesla are very low in number compared to other vehicle brands. Therefore, Tesla can take this as a major opportunity to boost their business activities in the unexplored international market.

Autonomous Driving Technology

You can also consider the Autonomous Driving Technology applied in the EVs of Tesla another major business opportunity. Tesla has promised to deliver driverless technology in the highly competitive electric vehicle market. This autopilot driving technology is continuously changing making it credible for potential customers.


Let’s evaluate some of the major threats to the business model of Tesla with an in-depth SWOT analysis. 

Higher Competition

Tesla is not the first brand to introduce electric cars in the market, though it is the first one to grab the attention of a broad range of audiences. As per my market research on Tesla, I have concluded that technological innovation and unique brand positioning are two of the major reasons that are responsible for Tesla’s thriving in the EV industry.

However, with the entry of different automobile car manufacturers like Ford, Volkswagen, and Kia; Tesla has started to lose the game. Though you can’t spot the difference in sales rate, you should not ignore this competition!

Business Controversies

Business controversies play a significant role in becoming a threat to any business growth. Tesla has been slammed for the controversy related to Elon Musk due to his ‘Insensitive employee termination’. Due to the reputation and celebrity-like position of Elon Musk, the controversial news can also become a major threat to this automotive car-making company of America.

With this, I have completely elaborated on the SWOT analysis of Tesla. Let me conclude my discussion of Tesla below.

Key Takeaways,

The electric vehicle manufacturer Tesla has adopted and launched various products to boost its commercial business presence and sales. Tesla initiated a lot of upgrades along with product styling to deliver the most trendy and accessible cars to its potential clients. 

Tesla is popular for using traditional marketing technologies on a large scale as compared to digital marketing strategies, hence, the area of implementing a diverse range of digital marketing strategies is huge. I am hoping that this blog post on the SWOT analysis of Tesla has offered you a detailed knowledge of the strengths, weaknesses, opportunities and threats of the company.

If you want to know further robust marketing strategies for conducting the SWOT analysis of Tesla, you must enroll on the Digital Marketing Course of W3 Web School. Begin your marketing skill development journey today!

I am Poulami Dalal. I have more than 3 years of Digital Marketing Experience. I work with my team to create best and simple ways to Teach Digital Marketing Online.