6. Exploit Air-Taxi Market Demand for innovative urban air-taxi services to supplant conventional taxis and reduce traffic congestion and pollution is projected to increase drastically by 2025. Tesla has the expertise and technology to deliver electric vertical takeoff and landing (eVTOL) vehicles and a second-largest shareholder has already invested millions in air taxi startup Lilium. [9]
7. Hertz Books Order for 100,000 Tesla Cars In a bid to meet the rising demand for electric vehicles, Hertz plans to buy 100,000 Tesla cars. However, a deeper reason for such a large purchase is staying two steps ahead of their rivals that are having trouble fulfilling the demand for gasoline-powered vehicles due to a chip shortage. This is great for Tesla as it hasn’t been able to successfully sell a large fleet of its popular electric vehicles.
Tesla’s Threats The threat factor is combined with the phenomenon which stops the company from taking full advantages of the benefits that can be derived from the available strengths. Therefore, these are the few threats which Tesla faces to maintain the business despite the unpredictable conditions of the market.
1. Product Liability Claims Despite Tesla’s premium quality assurance and high standards of manufacturing, the automobile industry, in particular, is accustomed to facing significant product liability claims which the company’s fears to be one of the biggest financial blows.
Tesla has launched many autopilot vehicles, and not all of them have been successful in case of an accident. The company has faced lawsuits and claims related to the failure of technology in their products. If these liability claims continued, then Tesla may be subjected to greater financial setbacks.
2. Extensive Competition Tesla, Inc. faces aggressive competition from both alternative fuel vehicles (Hybrid, Plug-in hybrid, fully electric car) and self-driving technology. Many automotive brands in the luxury segment like Mercedes, BMW, Audi, Lexus and in the economy segment like Toyota, Ford, General Motors , Volvo are getting ready for a fierce competition.
Many brands are not only launching or planning to launch their environment-friendly -Self-driving technology but also, they are offering them at a comparably lower price. It is a definite threat for a company like Tesla, which thrives on its unique value for innovative cars which are extremely expensive and unaffordable for many.
