9. Lack of Regulations for Self Driving As there are no proper regulations for self-driving in many countries, including the US, Tesla’s sale is effected by the self-driving restrictions in many areas. This confusing situation of legal complexity increases uncertainty about Tesla’s self-driving project’s future.
10. Elon Musk’s Erratic Behavior Affecting Tesla’s Reputation Tesla’s entire reputation is built upon the revolutionary personality of Elon Musk. But recently, his strange behavior and impulsive reactions are affecting Tesla’s worth as an iconic, innovative brand.
Recently his marijuana smoking incident on Joe Rogan’s podcast created controversy for being inappropriate. Subsequently, Tesla’s stock value dropped close to 9 percent by this unexplainable behavior from a man who is a visionary genius.
10. Economic Uncertainty Even though Tesla is better positioned to survive economic uncertainty than competitors, the looming recession is still a major threat to the company. [10]
11. Toyota Increases Production for its EV Vehicles It seems that Toyota is going to give Tesla a solid run for its money. The Japanese automaker announced it’s going to ramp up its electric vehicle production, aiming to sell up to 40% of its EV vehicles by 2030. In a relatively short time, Toyota has managed to get a bigger slice of the EV market share.
SWOT Analysis of Tesla
Conclusion
In this SWOT analysis for the company, we highlighted each of the strength, weakness, opportunity, and threat which Tesla faces in the market. To grow its market share and financial stability, Tesla needs to take vigorous actions.
Yet there is no doubt that despite the negative factors, the company is an ultimate symbol of progress and innovation.
