Honors Program

 

Date of this Version

Spring 4-2018

Citation

Dana, Chloe. A Strategic Audit of Tesla, Inc.: Electrifying our Future or About to Run out of Energy? University of Nebraska-Lincoln. 2018.

Comments

Copyright Chloe Dana 2018

Abstract

Tesla, Inc.’s stock had reached its peak during September of 2017. However, due to manufacturing delays of its new Model 3 sport sedan, cash flow issues, and a recent fatal autopilot accident, investors and consumers are questioning the firm’s long-term stability. Although Tesla has created technology that makes it easier for consumers to harness and utilize electricity to power their homes and vehicles, many wonder if the company’s stock price is about to figuratively run out of energy. The following will be a strategic analysis, illustrating the firm’s Current Strategy & Background Information, Situational Analysis & Issue Summary, Strategy Recommendations & Why, Implementation Plan, and Contingency Plan. Primarily using research collected from Tesla’s 2017 Annual Report, informational materials published by the firm, and a few third-party analyses, conclusions can be drawn as to the threats, opportunities, and competitive advantages of the company. The threats of government regulation, legal battles, cash-flow shortages, slow customer adaptation, and manufacturing delays, place pressure on Tesla’s business model. However, the sustainable energy market is the way of the future, giving Tesla opportunities to expand to new regions, trucking and public transport product markets, and an autonomous driving “shared fleet.” Tesla’s autonomous driving technology, over-the-air software updates, Supercharger network, battery life, and complete vertical integration set it apart from its competitors. Finally, strategy recommendations have been developed to mitigate major risk factors that could lead to bankruptcy.

Share

COinS