Tesla Motors ( Tsla ) Essay

953 Words Oct 23rd, 2016 4 Pages
Tesla Motors (TSLA) was founded in 2003 in San Carlos, California, as an automobile company dedicated to developing electric vehicles. Observing with the PESTEL analysis, political forces play a major role for Tesla because the company relies heavily on subsidies and favorable policies of the government to make its products more affordable for the customers. Economic factors have huge effects in Tesla 's success because rising fuel costs and economic recession forces consumers to opt for more cost effective sources of energy, such as the one provided by Tesla. If the economic conditions are positive, they enable higher purchasing power among consumers. However, technology plays a very essential role in the growth prospects of Tesla. New technologies are emerging in the clean energy space and can significantly lower the cost of alternative energy vehicles and goods, which pose threats as well as opportunities for Tesla’s growth prospects. Furthermore, socially, people across the globe are becoming more conscious about environmental pollution and increasingly adopting cleaner sources of energy, which is a positive signal for Tesla. Increasing concern about environmental pollution is forcing government across the globe to enact strict laws and implement such laws aggressively. Laws and regulations pertaining to clean energy provide opportunities as well as threats to Tesla as well.

Tesla Motors designs, develops, manufactures, and sells high-performance fully electric…

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