Tesla Flashcards
]\main challenge
focus remains primarily on EV growth and profitability
broad sustainability goals seen as high risk and distracting
vertically integrated model poses challenges in scaling up production
need to constantly innovate
competitive pressure in the EV market and production bottleneck
economic
rising gas prices and inflation make EV more appealing
tax credits and other financial incentives support EV
inflation and high interest rates
historic cash crunch of 2007 that increased financial vulnerability and the 2008 financial crisis
high ev costs limit accessibility
political
ice phase out mandates
supportive global regulations for sustainability and EV transition
concerns about raw material sourcing
ice vehicle bands by 2035 in Europe
sociocultural
rising consumer demand for environmental respomsbiloty
shifts reinforce EV adoption and regulatory support
growing urban populations and several public transports may affect
rising concerns over RM sourcing for batteries
technological
leading in ev battery tech and FSD capaolties
innovating battery tech
over the air updates and FSD efforts
autonomous driving
global
USA; industry is growing steadily, driven by demand and favourable prices
europe: Volkswagen leads in total EV sales, signalling tightened competition
‘china: teslas 40% production cost reduction through fully owned subsidiaries pressures competitors to lower costs
EV industry ; industry size
based on 2022
US; 10% of new care slaes
china: 20% are ev
europe: 12%–> tesla is the market leader
Tesla has a 65% market share
china is the largest car market and hard to drive with ice vehicles
EV industry: growth
us ev sales grew 5 times from 2019-2022
Evs are growing ion Europe from 12% from 2019-2022
there is growth
ev industry trends
gvt support
sustainability trends
growing accessibility of EVS
more competition
porter analysis
new entrants: high entry barriers lke capital and innovation, teslas scale, infratrsutcre and brand loyalty deter new entrants
rivalry: intensyfing from ford and volkwasgon, Tesla also has early mover advantage and brand loyalty , high exit barriers
buyers: increased ev options enhance buyer power, teslas brand loyalty tech edge and swtchig costs reduce it
subs: ICE and HYBRID alternatives threat decreases due to growing regulatory pressure
suppliers: teslas vertical integration reduces dependency, reliance oon scarce raw materials gives supplies power
opportunties
rapodulygrowing EV market
advancements in battery tech
renewable energy and product opportunity
solar city–> expanding into residential and commercial clean energy
launch of affordable ev
china is the largest car market globally
ice vehicles –> more affordable cars
threats
compititon, dependency on raw materials, regulatory vulnerability
economic risks from inflation and high interest rates
having to follow Californias emission policies
strengths
innovate leadership and tech –> self driving, manufacturing, battery, the unboxing production process
vertical integration and manufacturing capabilities
- does in house so reduces costs, faster to innovate and in control of tech
- build own factories, produce own semiconductors, control and monitoring over components
- follow up services are cowardly integrated –> offer repairs
- vehicle manufacturing –> high volume
- also used for the cybertruck by designing the controllers
economies of scale and synergy
- they have large factories
- high volume global production (global. networks of giga factories)
- vehicles and energy solutions–> supercharger network, energy, comprehensive solutions
strong brand and market positio
- brand recognized
- dominant market position
- global presence
- consumer loyalty
0 customers are awaiting the new cybertrcik and put down their name on a waiting list
- clear defined plans
- multiple touch points
- covid
additional strengths
clean tech energy company
software enhancements
data collection
disctinctibe vehicles
streamlined customization and production
weaknesses
- production and operational challemnges
- scaling issues (production hell), couldn’t meet the high demand , having issues with the model 3
- cost and complexity with being vertical integrated
- quality control–> related below average and hard to balance grwth with customer staisfcati - market and financial risks
- product portfolio concentration –> model 3/y is 96% of sales
l- imited offering for lower income consumers - leadership and strategic risks
- dependency on Elon musk
- issues with leadershop
- neg attention like from the SEC lawsuit with twitter
supply chain management
joint venture –> leads to further innovation with battery, cost and space efficient its with Panasonic
monitoring suppliers inventory levels–> can anticipate shortages and crisis which helped them during covid
insourcing critical compiennts–> reduces reliance
closed loop replying
- reduces waste
- costs reduced
they dont outsource their parts
COST EFFICIENT AND STABLE PRODUCTION
operations
1/ vertical intergation–> manufacturing, battery production and software development
2. giga factory–> allows total control over construction and design, global network, integrated production , large scale ,manufacturing
- master plans
ECONOMIES OF SCALE AND CPNTROL
distribution
- foward integrated distribution channel 9direct to consumer sales model online)
- limited customization options allows for mass production ***
global network of gigafactories to ensure efficient delivery
STRONG BRAND CONSUMER RELATIONSHIPS
marketing and sales
- minimal marketing
- brand rep
- high profile product unveilings
- streamlined customization - cross selling
- energy generation, store and trasnport
- ecosystem
direct sales –> fowardly integrated using a direct to consumer sales so can control Custer experience and collect data , mobile service , insurance
- can order vehicles from the website and only provides minimal customization
control the customer experience, collect data