Macroeconomic Factors That Affect Tesla Motors: A Transformation In Their Business Models
Introduction
The automotive industry experienced a shift in macroeconomic dynamics that initiated a transformation in their business models. There is an increasing environmental awareness (Gadenne et al., 2009) and coupled with new regulatory requirements which pushes conventional manufacturers to apply more efforts in producing more fuel-efficient vehicles. With this “game changer”, new entrants like Tesla who focuses in the manufacturing of fully electric vehicles (EV) grew its presence and is now acknowledged globally as the market leader in the EV marketplace. Many big players also began to enter the electric vehicle market to meet the growing demand of sustainable technologies and retain market share (Chan, 2007). This assignment will examine the macroeconomic factors that affect Tesla Motors through the PESTLE analytical framework.
Political and Legal
Conventional gasoline automobiles primarily dominate the market that …show more content…
However, such may become inaccurate in a prevailing market, as the macroeconomic factors of PESTLE framework are dynamic to changes. To conduct a proper analysis, extensive data collection is required from reliable sources. In times where information is not readily available, assumptions are made. However, baseless assumptions can lead to disastrous analysis. This can be time consuming to keep the data updated and prevent obsolete. In case of Tesla, there are a few critical factors that determine its success. They were clearly able to innovate well ahead of competitors for electric vehicle and manufacture lithium-ion battery capabilities. The U.S government and global countries are supportive to drive carbon footprints lower, which sets the future backdrop of higher EV demand. Although it is unfortunate for certain States to implement red tapes on Tesla direct distribution, they were quick enough to maneuver its business to receptive countries like
The automotive industry experienced a shift in macroeconomic dynamics that initiated a transformation in their business models. There is an increasing environmental awareness (Gadenne et al., 2009) and coupled with new regulatory requirements which pushes conventional manufacturers to apply more efforts in producing more fuel-efficient vehicles. With this “game changer”, new entrants like Tesla who focuses in the manufacturing of fully electric vehicles (EV) grew its presence and is now acknowledged globally as the market leader in the EV marketplace. Many big players also began to enter the electric vehicle market to meet the growing demand of sustainable technologies and retain market share (Chan, 2007). This assignment will examine the macroeconomic factors that affect Tesla Motors through the PESTLE analytical framework.
Political and Legal
Conventional gasoline automobiles primarily dominate the market that …show more content…
However, such may become inaccurate in a prevailing market, as the macroeconomic factors of PESTLE framework are dynamic to changes. To conduct a proper analysis, extensive data collection is required from reliable sources. In times where information is not readily available, assumptions are made. However, baseless assumptions can lead to disastrous analysis. This can be time consuming to keep the data updated and prevent obsolete. In case of Tesla, there are a few critical factors that determine its success. They were clearly able to innovate well ahead of competitors for electric vehicle and manufacture lithium-ion battery capabilities. The U.S government and global countries are supportive to drive carbon footprints lower, which sets the future backdrop of higher EV demand. Although it is unfortunate for certain States to implement red tapes on Tesla direct distribution, they were quick enough to maneuver its business to receptive countries like