Honors Program


Document Type


Date of this Version

Spring 4-27-2018


Hoelzlhammer, A. (2018, April 27). "A Strategic Audit of Tesla"


Copyright Abigail Hoelzlhammer 2018


This strategic audit will examine the problems Tesla is currently facing, do a Porter’s Five Forces analysis of the company, review environmental factors affecting Tesla, state Tesla’s current strategy, evaluate their distinguishing resources and competitive advantages, and end with a strategic recommendation along with implementation requirements.

One of Tesla’s vehicles crashed in March 2018 while on autopilot, which caused their stock to drop significantly. They’re also experiencing issues with the production of the new Model 3. The current political situation and growing demand for the parts Tesla needs are environmental factors that are having a negative effect. On the other hand, today’s society and the upcoming generations are becoming more and more concerned with being environmentally friendly, which is an environmental factor that will positively effect Tesla.

In short, Tesla’s strategy is to improve the environment by leading the way with electric cars and other types of renewable energy products that will eventually be able to be made in such a way that will make them affordable for everyone.

Tesla’s human capital is one of its most distinguishing resources. Elon Musk’s innovation, dedication, and funding abilities are a large piece of their competitive advantage.

My recommendation would be to re-evaluate the production process, specifically that of the Model 3 and brainstorm how to address the hiccups they’ve been experiencing. Afterward, release a realistic and achievable time-frame for all current and future productions. Lastly, Tesla should put a greater focus on educating the public about how their vehicles work and are made to combat the bad press they’ve been receiving. Information on this is already available to the public and is easy to find, but Tesla should actively promote it more.

Implementing this recommendation would require time to study the production process, finances needed to fix problems, additional finances to promote education about their products, and finances to hire an additional or new press manager if deemed necessary.