Overview: In this assignment, you need to review the Tesla, Inc. case study. The case study

describes the rise of Tesla Motors, an electric vehicle company founded in 2004 by

electric inventor Martin Eberhard and South African innovator, Elon Musk. The case

details the motivation of the two men, their personalities, and the conflicts they went

through to develop the company. It also provides an overview of the challenges and

opportunities of competing in the electric vehicle space; discusses Tesla’s strategies for

manufacturing, marketing, and distributing the cars; and points to key questions about

Tesla’s future.

Instructions: Review the Tesla Case Study. Also, feel free to utilize information from the Tesla videos

found in Reading and Resources in this unit.

Using Porter’s Five Forces model:

• Describe in detail the challenges and opportunities of competing in the electric

vehicle industry.

o You will need to create a section for each of the five forces when

answering the question in detail.

• Finally, describe Tesla’s strengths and weaknesses.

Requirements:

• Submit a two-three page Word document covering the elements of the

assignment.

• Develop a clear introduction, body, and conclusion. Use paragraph format and

transitions.

• Focus on the quality of writing and content.

• Use APA format with a title page, in-text citations, and references. Abstract not

required. The title page, reference page, and appendices are excluded in page

length requirement.

BUS411 – Business Policy Seminar

Tesla, Inc. – Case Study 15

• Research and cite at least two credible sources in APA format.

Be sure to read the criteria below by which your work will be evaluated before

you write and again after you write.

Evaluation Rubric for Tesla, Inc. Case Study Assignment

CRITERIA Deficient Needs Improvement

Proficient Exemplary

0-11 points 12-15 points 16-17 points 18-20 points

Introduction Unclear or incomplete.

Introduction with a partially developed thesis.

Introduction with a mostly developed thesis.

Clear, well- developed, introduction and thesis.

0-17 points 18-23 points 24-26 points 27-30 points

Supporting Evidence/ Analysis

Lacks specific, credible, and relevant support. Development of position/argum ent is inadequate or missing.

Not adequately supported with a limited spectrum of specific, credible, and relevant evidence. Development of position/argum ent is somewhat thoughtful and persuasive but lacks detail.

Adequately supported with a limited spectrum of specific, credible, and relevant evidence. Development of position/argum ent is thoughtful and persuasive but lacks some detail.

Well-supported with a broad spectrum of specific, credible, and relevant evidence. Position/argum ent is well- developed, very thoughtful, and persuasive.

0-11 points 12-15 points 16-17 points 18-20 points

Conclusion No conclusion included.

Some attempt at a conclusion, but it is not well written.

Good attempt at a conclusion, but more development needed.

Well written and fully developed conclusion.

0-8 points 9-11 points 12-13 points 14-15 points

Clear and Professional Writing

Writing is frequently difficult to understand because of several errors in grammar, punctuation,

Writing is somewhat difficult to understand with errors in punctuation, spelling, and grammar.

Writing is easy to understand despite minor errors in punctuation, spelling, and grammar. Appropriate

Writing is free of almost all punctuation, spelling, and grammar errors. Appropriate word choice is

and spelling. Word choice is sometimes inappropriate for an academic setting. Sentence structure is unclear.

Appropriate word choice is somewhat used for an academic setting. Sentence structure is somewhat clear.

word choice is used for an academic setting. Sentence structure is mostly clear.

used for an academic setting. Sentence structure is clear.

0-8 points 9-11 points 12-13 points 14-15 points

APA Formatting and References

Paper has no APA formatting, or paper has an APA cover, but no references or in-text citations. No academic references present or reference formatting has significant errors.

Paper lacks multiple elements of APA (cover, references, or in-text citations). One academic reference present but errors in formatting.

Paper lacks one element of APA (cover, references, or in-text citations). Two academic references present but may have a few errors in formatting.

Paper has all elements of APA formatting (cover, references, and in-text citations). Two or more academic references are present and formatted properly.

SOLUTION

BUS411 – Business Policy Seminar
Instructor Name
Date

Tesla, Inc.: A Strategic Analysis Using Porter’s Five Forces

Introduction

Tesla, Inc., founded in 2004 by Martin Eberhard and Elon Musk, has become one of the most disruptive forces in the automotive industry. As a pioneer in electric vehicles (EVs), Tesla has redefined customer expectations, manufacturing strategies, and sustainability standards. However, Tesla operates in a highly competitive, capital-intensive environment filled with regulatory, technological, and market-based challenges. This paper applies Porter’s Five Forces framework to explore the strategic dynamics of the electric vehicle industry and Tesla’s place within it. Additionally, Tesla’s internal strengths and weaknesses will be analyzed to provide a comprehensive overview of the company’s competitive positioning.

1. Threat of New Entrants

The EV industry requires significant capital investment, technological expertise, and compliance with environmental regulations. These high barriers to entry deter many potential competitors. However, government incentives and the global push for cleaner energy sources have lowered some of these entry barriers. Startups like Lucid Motors and established players like Ford and Volkswagen have begun investing heavily in EVs. Tesla’s first-mover advantage, massive investment in Gigafactories, and proprietary battery technology give it a strong edge over new entrants.

Opportunity: Tesla can expand its technological lead and leverage its brand to attract environmentally conscious consumers.
Challenge: The entry of traditional automakers into the EV space increases competitive pressure and reduces Tesla’s exclusivity.

2. Bargaining Power of Suppliers

Tesla maintains tighter control over its supply chain than many traditional automakers. It manufactures many components in-house and has long-term contracts with suppliers for critical materials like lithium and cobalt. However, the scarcity of rare earth metals and geopolitical risks surrounding their supply can pose threats.

Opportunity: Vertical integration, such as Tesla’s battery production and energy storage solutions, reduces dependency on third-party suppliers.
Challenge: Limited supplier availability for high-grade raw materials can increase costs and risk production delays.

3. Bargaining Power of Buyers

Tesla’s target market is increasingly diverse, including both early adopters and mainstream consumers. While consumer demand for EVs is rising, Tesla buyers often have alternatives such as Rivian, BMW i-series, or Chevy Bolt. Customers today have higher expectations for performance, range, and affordability.

Opportunity: Continued innovation in battery range and autonomous driving features can differentiate Tesla.
Challenge: Rising customer expectations and price sensitivity could pressure Tesla to reduce margins or diversify offerings.

4. Threat of Substitute Products or Services

While internal combustion engine (ICE) vehicles remain a substitute, rising fuel prices and climate change awareness are shifting preferences toward EVs. Other transportation models, such as ride-sharing (Uber, Lyft) and public transit, also serve as substitutes, especially in urban areas.

Opportunity: Tesla can broaden its influence by investing in mobility solutions like robotaxis and public transportation innovations (e.g., The Boring Company).
Challenge: Market shifts toward shared mobility may reduce private car ownership in the future.

5. Industry Rivalry

Tesla faces intense competition from traditional automakers transitioning to EVs and new players born as EV companies. Firms like BYD in China, Lucid Motors, and Polestar are increasing their footprint. Tesla’s aggressive pricing strategies, especially in 2023–2024, show its focus on staying ahead.

Opportunity: Tesla’s ecosystem, which includes energy storage, solar power, and charging networks, gives it an advantage in differentiation.
Challenge: Competitors with established global distribution and economies of scale could erode Tesla’s market share.

Tesla’s Strengths and Weaknesses

Strengths:

Innovation leadership in battery technology, autonomous driving, and software integration.
Strong brand loyalty and a futuristic image.
Vertical integration enables cost control and supply chain flexibility.

Weaknesses:

Production scalability and quality control issues have periodically surfaced.
Public perception and leadership controversies (e.g., Elon Musk’s behavior) may affect brand image.
Limited product variety compared to major competitors, especially in lower-cost segments.

Conclusion

Tesla’s journey from a disruptive startup to a global EV leader is a case study in innovation, strategy, and risk-taking. Applying Porter’s Five Forces highlights both the opportunities Tesla has leveraged and the challenges it must continue to navigate in the evolving electric vehicle market. While Tesla’s technological superiority and brand equity are undeniable, its future success hinges on managing competition, scaling production, and addressing market demands across diverse consumer segments. With a strong focus on innovation and sustainability, Tesla is well-positioned, but it must remain agile in the face of growing global competition.

References
Cowan, K., & Elon, S. (2022). Tesla, Inc. case study. Harvard Business School Publishing.
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard Business Review, 86(1), 78–93.
Statista. (2024). Electric vehicle market share worldwide. Retrieved from https://www.statista.com
Tesla, Inc. (2023). Annual impact report. Retrieved from Tesla, Inc.: A Strategic Analysis Using Porter’s Five Forces appeared first on Skilled Papers.