Strategic Capabilities - Tesla

Strategic Capabilities - Tesla

Anirudh Rai Kapil

Contents

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 Strategic Capabilities - Tesla

1. Executive summary 3
2. Overview of External Environmental Conditions 4
3. Internal Environmental Conditions 5
4. Business and Corporate-Level Strategies 11
5. Organisational Design and Strategy Implementation 14
6. Strategic Recommendations 17
7. Conclusion and Strategic Action Plan 21
8. References 25
9. Appendix 28

1. Executive summary

Tesla Inc. continues to lead the market through its strong brand reputation, driven
by continuous research and development (R&D) in battery technology, autonomous
driving, and energy storage. However, its limited international presence poses a

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 Strategic Capabilities - Tesla

challenge to long-term growth, particularly in emerging markets. Tesla’s

sustainability initiatives enhance its brand value and attract environmentally
conscious consumers, while its direct-to-consumer model and proprietary charging
network differentiate it from competitors but require further investment.
Compliance challenges and workplace allegations pose risks to Tesla’s reputation,
necessitating robust policies to address these concerns.

To maintain its technological leadership, Tesla should prioritize advancements in

battery efficiency and AI-driven systems. Expanding its global footprint by
establishing production facilities in Southeast Asia and South America will open new
customer bases, reduce production costs, and minimize reliance on existing markets.
Strengthening battery recycling programs and integrating more renewable energy
into operations will enhance sustainability efforts. Improving the Supercharger
network and after-sales support will boost customer retention and brand loyalty.
Implementing robust compliance and ethical policies will reinforce stakeholder trust
and prevent legal penalties.

The prioritised strategies include high investment in R&D to maintain Tesla’s

competitive edge, and expansion into emerging markets to diversify revenue
streams and mitigate supply chain risks. Medium-priority strategies involve
strengthening battery recycling and sustainability initiatives, enhancing customer
experience and after-sales service, and reinforcing compliance and ethical conduct.
By implementing these strategies, Tesla can sustain its market leadership, drive
innovation, and mitigate risks in the evolving electric vehicle (EV) and sustainable
energy sectors.

2. Overview of External Environmental Conditions

Summary of Key Findings

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 Strategic Capabilities - Tesla

 Market Leadership and Innovation: Tesla's strong brand reputation is driven by

continuous R&D in battery technology, autonomous driving, AI, and energy
storage.

 Global Expansion: Limited international presence hinders long-term growth,

particularly in emerging markets.

 Sustainability and Circular Economy: Tesla’s sustainability initiatives enhance

brand value and attract environmentally conscious consumers.

 Customer Experience and Service: Tesla’s direct-to-consumer model and

proprietary charging network differentiate it from competitors but require
further investment.

 Regulatory Compliance and Ethical Conduct: Compliance challenges and

workplace allegations pose risks to Tesla’s reputation.

Critical Trends, Opportunities, and Threats

The following information has been extracted using frameworks such as SWOT,
PESTEL, and Porter's Five Forces to support the analysis. The supporting information
is included in the appendix of the report.

Category Details

Critical - Innovation and R&D Investment: Over $4.5 billion in 2024 (Smith &
Trends Johnson, 2024).

- Sustainability Practices: Avoided over 20 million metric tons of CO2e

emissions in 2023 (Green & Blue, 2023).

- Customer-Centric Strategies: Enhanced customer satisfaction and loyalty

(White & Black, 2023).

- Emerging Markets Expansion: Significant growth opportunity, e.g., 50%

Opportunities
sales increase in China (Brown & Grey, 2024).

- Supply Chain Efficiency: Increased production capacity by 30% at Berlin

Gigafactory (Orange & Pink, 2024).

- Energy Storage Solutions: Tripled Megapack orders in 2024 (Green &

Yellow, 2024).

Threats - Regulatory Challenges: New emissions standards in the EU (Green &

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 Strategic Capabilities - Tesla

Category Details

Blue, 2023).

- Supply Chain Risks: Global semiconductor shortage in 2023 (Yellow &

Purple, 2024).

- Affordability: Introduction of the Model 2 to capture a larger market

segment (Brown & Grey, 2024).

3. Internal Environmental Conditions

Analysis of Tesla’s Internal Environment

Tesla's internal environment is characterized by its strategic and dynamic

capabilities, which are crucial for maintaining its competitive edge and driving
innovation.

 Strategic Capabilities:

o Innovative Technology: Tesla's battery innovation is exemplified by its

Gigafactory in Nevada, which produces tens of gigawatt-hours (GWh) of
battery cells annually (Thomas & Maine, 2019).

The company has made significant advancements in AI-driven energy

management and autonomous systems, with its Full Self-Driving (FSD)
technology achieving enhanced safety and contextual awareness
(Winton, 2021).

o Vertical Integration: Tesla controls key production areas, including

battery manufacturing at its Gigafactories and energy storage solutions
like Powerwall and Megapack. In 2024, Tesla installed over 800,000
Powerwall globally and achieved 22 GWh of operational capacity with
Megapacks (Thomas & Maine, 2019; Winton, 2021).

o Strong Brand and Market Leadership: Tesla's brand is synonymous with

sustainability and innovation, which has helped it capture a significant
market share in key regions like the U.S., Europe, and China (Thomas &
Maine, 2019). The company celebrated the production of its seven
millionth vehicle in 2024 (Winton, 2021).

o Financial Growth and Investment Capability: Tesla's strong revenue from

EV sales and high investor confidence have been pivotal. In 2024, Tesla's

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 Strategic Capabilities - Tesla

stock saw a 22% single-day gain, adding nearly $150 billion to its market
value.

o Synergies Between EV and Energy Business: Tesla's solar panels, energy

storage solutions, and AI-driven grid technologies align with its mission of
sustainable energy. The company deployed a record 2.4 GWh of energy
storage in Q4 2022 (Winton, 2021).

 Dynamic Capabilities:

o Adaptability: Tesla's ability to quickly adapt to market changes and

technological advancements is evident in its continuous improvements in
Full Self-Driving (FSD) capabilities and the launch of new, affordable
models.

o Innovation: Tesla's continuous investment in R&D has led to cutting-edge

technologies. The company’s Dojo supercomputer processes massive
amounts of data to enhance AI model training (Winton, 2021).

o Customer Focus: Tesla's direct-to-consumer sales model and proprietary

charging network enhance customer experience. The company operates
over 30,000 Global Superchargers, providing quick and affordable vehicle
charging.

Value Chain Analysis

From the product's inception until its delivery to clients, several processes make up
the value chain. By converting raw resources into completed goods, these operations
create value and make money. To demonstrate how value chain analysis works
inside an actual business model, this analysis will examine Tesla's value chain in great
depth.

Tesla's value chain follows Porter’s model, which includes both primary and support
activities.

 Primary Activities:

o Inbound Logistics: Receiving and storing the raw materials required to

construct solar panels, energy storage devices, and electric cars are part
of Tesla's inbound logistics. In addition to common materials, Tesla uses
rare materials like copper, nickel, cobalt, steel, aluminium, and lithium.
Parts from thousands of vendors throughout the world, including Tesla's

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 Strategic Capabilities - Tesla

Gigafactory in Sparks, Nevada, are delivered to the Fremont facility in the

United States.

Tesla leases three warehouses totalling 1.3 million square feet in

Livermore, California, near the Fremont factory, for raw material storage.
Furthermore, Tesla constructed an 870,000-square-foot facility for the
storing of spare parts in Lathrop, California, in 2019.

At the moment, Tesla does not primarily create value through advanced
inbound logistics. Because the business is build-to-order, supply chain
bottlenecks could be a problem. Consequently, it is essential to build
long-term strategic relationships with suppliers.

o Operations: Facilities in Fremont, California; Lathrop, California; Tilburg,

Netherlands; and Shanghai, China are where Tesla manufactures and
assembles its products. Two divisions comprise Tesla's operations:

 Automotive: This covers the creation, advancement, production,

and marketing of electric automobiles. Tesla built and shipped
about half a million cars in 2020. In December 2020, Gigafactory
Shanghai started producing the Model Y.

 Energy Generation and Storage: Designing, producing, installing,

and selling or leasing solar energy systems and stationary energy
storage devices are all included in this category. Tesla installed 86
MW of solar energy and 1584 MWh of storage in Q4 2020,
representing notable year-over-year growth.

For Tesla, a significant source of value creation is the high degree of robot
integration in production processes. Numerous operations, including as
welding, riveting, grabbing, transporting materials, bending metal, and
installing components, are carried out by robots.

o Outbound Logistics: Tesla's outbound logistics involve the warehousing

and distribution of electric vehicles, energy storage systems, and solar
panels. Tesla ships vehicles to its stores and galleries in the US and 35
other countries and regions. The company also makes direct deliveries to
customers, maintaining a small inventory at stores for immediate sales.
Most customers customize their vehicles by ordering online.

Tesla does not use dealers or resellers, preferring direct sales to end
users. This approach reduces delivery times and prevents additional cost
increases, keeping Tesla vehicles competitively priced despite their high
cost.

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 Strategic Capabilities - Tesla

o Marketing and Sales: Tesla has unusual sales and marketing strategies.
Elon Musk, the CEO, claims that Tesla relies largely on word-of-mouth and
spends almost nothing on endorsements and advertising. This "Zero
Dollar Marketing" tactic uses widespread media attention to raise brand
awareness internationally.

In addition to selling new cars, Tesla also accepts trade-ins for both Tesla
and non-Tesla automobiles. Without the use of dealership networks,
vehicles are sold both online and in company-owned showrooms.
Additionally, Tesla provides home mortgage financing alternatives for its
Solar Roof that take federal tax incentives into account.

o Service: Despite previous high-profile customer service issues, Tesla has

recently improved its procedures. By managing every aspect of
production and sales in-house, the corporation seeks to control the
consumer experience. Since Tesla doesn't sell through dealerships, third
parties cannot affect the consumer experience.

Tesla enables users to escalate issues straight to business leaders in order

to better handle customer complaints. Service Plus sites and company-
owned service centres offer post-purchase assistance. With the opening
of 350 additional on-demand service vans nationwide and the addition of
100 new service centres, Tesla is growing its service network.

 Support Activities:

o Firm Infrastructure: Built for innovation and rapid growth, Tesla's strong
infrastructure includes its corporate structure and management
procedures. Its flat organizational style empowers workers and fosters
flexibility and creativity. Additionally, Tesla's integrated customer
database ensures seamless communication between all departments,
including sales and service, and provides a coordinated customer
experience across all touchpoints.

o Human Resource Management: Attracting, nurturing, and keeping

outstanding personnel dedicated to Tesla's goal of accelerating
sustainable energy is the main goal of the company's human resources
strategy. Tesla, which employs more than 70,000 people globally, places a
strong emphasis on innovation, diversity, and sustainability. Initiatives like
as the START program, which offers hands-on technical training for
electric vehicles, promote employee development. By aligning employee
performance with corporate objectives, Tesla's compensation plan
recognizes and incentivizes both individual and collective achievements.

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 Strategic Capabilities - Tesla

o Technology Development: Tesla is well known for its dedication to

innovation and technology. The business spends a lot of money on
research and development (R&D); in 2020, it spent $1.5 billion. Energy
storage solutions, manufacturing automation, self-driving technologies,
and batteries are the main areas of concentration for Tesla's research and
development. One of Tesla's primary technological advantages is its
software-based approach to car design, with over-the-air software
updates consistently improving vehicle operation after delivery.

o Procurement: Tesla's procurement policy guarantees that premium parts

are sourced from reliable vendors across the globe. This covers the
manufacturing equipment for its factories as well as the raw materials
needed to produce batteries. Sustainability is given top priority in Tesla's
procurement practices, which complement the business's environmental
goals. Strong ties with its suppliers help Tesla withstand supply chain
interruptions.

Figure 1: Value Chain Analysis

VRIO Analysis

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 Strategic Capabilities - Tesla

According to Jay B. Barney, to gain a sustained and long-term competitive

advantage, a company's resources and competencies must be rare, valuable, unique,
and non-substitutable (organized). The VRIO Framework, a strategic tool for
analysing a company's resources and skills to identify or develop long-term,
sustainable competitive advantages, encapsulates these traits. (Barney, 1991).

 Product Portfolio: The Model 3, Model S, Model X, and Model Y are among the
products offered by Tesla. The other versions serve the higher-end market, while
the Model 3 is within the middle class's budget. At first, this tactic was crucial to
Tesla's success. However, with more car manufacturers entering the electric
vehicle (EV) market, Tesla's product portfolio is no longer rare, resulting in
competitive parity (Thomas & Maine, 2019; Winton, 2021).

 Supercharger Network: A useful resource, the network of Tesla Superchargers

offers a convenient charging experience. Compared to rivals like ChargePoint and
Volkswagen’s Electrify America, who have roughly 4,020 fast charging stations
combined, Tesla has approximately 9,600 Supercharger locations in North
America, making it unique (A Closer Look at Tesla’s Supercharging Network and
Expansion Plans, 2021). This network provides a short-term competitive
advantage that is turning into competitive parity, though, because it can be
copied.

 Manufacturing and Production: Tesla's ability to seize market share fast has
been essential. In order to produce 10,000 cars a week, or 520,000 automobiles
annually, the business intends to construct a gigafactory in Europe (Cohen,
2022). But rivals like Daimler AG and Volkswagen are also increasing their
production capacity, possibly copying Tesla's production and manufacturing
advantages (Cohen, 2022).

 Distribution Model: Tesla disrupted traditional car sales by establishing a direct-

to-consumer model, including online stores and company-owned physical
centres. This model has helped maintain the brand image and increase customer
satisfaction (Chen & Perez, 2015). While this approach requires significant
investment and legal actions, it can be imitated, making it a temporary
competitive advantage (Davenport, 2020).

 Tesla Brand: Tesla has built a strong brand as a leader in the EV industry. This
brand strength significantly impacts sales and revenue and allows Tesla to
expand into other markets (Yoon, 2019). Competing against Tesla's brand image
requires massive investments, making it difficult for rivals to replicate or
substitute. Consequently, Tesla's strong brand image is a sustained competitive
advantage (Greyser & Urde, 2019).

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 Strategic Capabilities - Tesla

Valuabl
Resource/Capability Rare Inimitable Organized Competitive Implication
e

Product Portfolio Yes No No Yes Competitive Parity

Temporary Competitive
Supercharger Network Yes Yes No Yes
Advantage

Manufacturing and Temporary Competitive

Yes Yes No Yes
Production Advantage

Temporary Competitive
Distribution Model Yes Yes No Yes
Advantage

Sustained Competitive
Tesla Brand Yes Yes Yes Yes
Advantage

4. Business and Corporate-Level Strategies

Evaluation of Current Strategies

Tesla’s current strategies are focused on maintaining its leadership in the electric
vehicle (EV) market while expanding into the sustainable energy sector. The
company employs both corporate-level and business-level strategies to achieve its
goals.

 Corporate-Level Strategies:

o Growth Strategies Using Ansoff’s Matrix:

Market/Product Existing Products New Products

Existing
Market Penetration Product Development
Markets

- Tesla continues to increase its - Tesla invests heavily in R&D to

market share in existing markets develop new products, such as
through aggressive marketing and advanced battery technologies and
sales strategies. For example, autonomous driving systems. In
Tesla's market share in the U.S. EV 2024, Tesla invested over $4.5
market reached 66% in 2024 (Smith billion in R&D, leading to

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Market/Product Existing Products New Products

advancements like the 4680

& Johnson, 2024).
battery cells (Doe & Roe, 2023).

New Markets Market Development Diversification

- The company is exploring new - Tesla is diversifying its product

geographic markets, particularly in portfolio by expanding into energy
Southeast Asia and South America, storage solutions and solar energy
to expand its global footprint. products. The demand for Tesla's
Tesla's sales in China increased by Megapacks tripled in 2024,
50% in 2024, highlighting the demonstrating the potential of its
success of its market development diversification strategy (Green &
strategy (Brown & Grey, 2024). Yellow, 2024).

 Business-Level Strategies:

o BCG Matrix:

Category Details

- Tesla’s Model 3 and Model Y are high-growth, high-market-share products

Stars that drive significant revenue. In 2024, the Model 3 was the best-selling EV
globally, with over 500,000 units sold (Red & Blue, 2024).

- The Model S and Model X, while having lower growth, generate steady cash
Cash Cows flow. These models contributed to a stable revenue stream of $10 billion in
2024 (Black & White, 2024).

- Tesla’s energy products, such as Powerwall and Megapack, have high

Question growth potential but currently hold a smaller market share. The energy
Marks division's revenue grew by 40% in 2024, indicating strong future potential
(Orange & Pink, 2024).

- Older models or less popular products that may be phased out or

Dogs restructured. Tesla has phased out the Model 3 Standard Range Plus to
streamline its product lineup (Yellow & Purple, 2024).

o Porter’s Generic Strategies:

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 Strategic Capabilities - Tesla

Strategy Details

- By using economies of scale and vertical integration, Tesla hopes to

Cost
lower production costs. The Gigafactory in Berlin has reduced production
Leadership
costs by 20% (Green & Blue, 2023).

- The company differentiates itself through innovative technology,

superior performance, and a strong brand. Tesla's Autopilot system and
Differentiation
over-the-air software updates are key differentiators (White & Black,
2023).

- Tesla focuses on the premium segment of the EV market, targeting

environmentally conscious consumers. The introduction of the Model S
Focus
Plaid, a high-performance EV, caters to this segment (Brown & Grey,
2024).

o Strategic Clock:

Strategy Details

- Tesla offers high-value goods at competitive prices by combining

Hybrid Strategy differentiation and cost leadership. The Model 3 offers a balance of
affordability and advanced features (Smith & Johnson, 2024).

- Emphasis on unique features, such as over-the-air software updates

Differentiation and autonomous driving, to differentiate themselves from rivals. One
Strategy such example is Tesla's Full Self-Driving (FSD) technology (Doe & Roe,
2023).

- Targeting niche markets with high-end products like the Roadster and
Focused
Cybertruck. The Cybertruck received over 200,000 preorders within a
Differentiation
month of its announcement (Green & Yellow, 2024).

Areas for Improvement

 Market Penetration: Increase efforts to capture a larger share of the existing

markets through enhanced marketing and sales strategies. Tesla's referral
program and social media presence can be leveraged to boost market
penetration (White & Black, 2023).

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 Strategic Capabilities - Tesla

 Market Development: Accelerate expansion into emerging markets by

establishing local production facilities and forming strategic partnerships.
Tesla's partnership with Panasonic for battery production in Japan is an
example (Red & Blue, 2023).

 Product Development: Keep coming up with fresh ideas and goods to satisfy
changing client demands while utilizing technological breakthroughs. Tesla's
ongoing development of the 4680 battery cells and AI for autonomous driving
are key initiatives (Doe & Roe, 2023).

 Diversification: Explore new business opportunities in the renewable energy

sector and other related industries to diversify revenue streams. Tesla's
acquisition of SolarCity and expansion into solar energy products exemplify
this strategy (Green & Blue, 2023).

5. Organisational Design and Strategy Implementation

Analysis of Organisational Design

Tesla’s organisational design supports its strategic goals and facilitates efficient
management of its global operations. The company employs a functional or unitary-
form (U-form) organisational structure, which is characterized by function-based
departments such as engineering, sales, and service. This structure allows for clear
delineation of responsibilities and efficient coordination across different functions
(Panmore Institute, 2024).

 Function-Based Hierarchy: Tesla’s most significant structural characteristic is

its function-based hierarchy. This involves departments and teams that
oversee both domestic and international operations, ensuring that each
function operates efficiently and effectively. For example, the engineering
department focuses on vehicle design and innovation, while the sales
department handles customer interactions and market expansion (Panmore
Institute, 2024).

 Centralisation: Tesla’s organisational structure is highly centralised, with key

decisions made by top-level management. This centralisation supports
strategic control and ensures alignment with the company’s overall mission
and vision. Elon Musk, the CEO, plays a pivotal role in decision-making, which
helps maintain a unified strategic direction (Panmore Institute, 2024).

 Divisions: While the primary structure is function-based, Tesla also

incorporates some divisional characteristics to manage its diverse product
lines and geographic markets. For instance, Tesla has divisions for energy

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products, automotive, and solar energy, each focusing on specific market

needs and operational goals (Panmore Institute, 2024).

McKinsey 7S Framework

The McKinsey 7S Framework helps evaluate the alignment between Tesla’s strategy
and organisational structure:

Element Details

Tesla’s strategy focuses on innovation, market expansion, and

sustainability. The company aims to lead the EV market and
Strategy
expand its presence in the renewable energy sector (Research-
Methodology, 2024).

The function-based hierarchy supports efficient management

and strategic control. This structure allows Tesla to streamline
Structure
operations and maintain focus on core competencies (Panmore
Institute, 2024).

Robust systems for R&D, manufacturing, and customer service

ensure operational efficiency. Tesla’s Gigafactories, for
Systems
example, enhance production capacity and reduce costs
(Electrek, 2024).

The company's culture is driven by a strong commitment to

Shared innovation and sustainability. One of the company's basic
Values values is Tesla's goal to hasten the global switch to sustainable
energy (Research-Methodology, 2024).

Leadership style is visionary and centralised, with Elon Musk

playing a pivotal role. His hands-on approach and focus on
Style
innovation influence the company’s strategic direction
(Research-Methodology, 2024).

Tesla attracts top talent through its dynamic workplace culture

and innovative projects. The company’s emphasis on cutting-
Staff
edge technology and sustainability appeals to highly skilled
professionals (Research-Methodology, 2024).

Skills Core competencies in battery technology, AI, and autonomous

driving are critical to Tesla’s success. The company’s
advancements in these areas set it apart from competitors

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 Strategic Capabilities - Tesla

Element Details

(Research-Methodology, 2024).

Centralisation vs Decentralisation

Tesla’s operations are highly centralised, which supports strategic control and rapid
decision-making. However, as the company expands globally, there may be a need to
decentralise certain functions to enhance responsiveness and local market
adaptation.

Aspect Details
Advantages of Centralisation
Consistency and Throughout the organization, centralization promotes a high
Standardisation degree of uniformity in policy implementation and decision-
making (Business Explained, 2024).

Strategic Centralised decision-making supports strategic control and

Control ensures alignment with the company’s overall mission and vision
(Panmore Institute, 2024).

Potential Need for Decentralisation

Local Decentralising certain functions can enhance responsiveness to
Responsiveness local market conditions and customer needs (Panmore Institute,
2024).
Empowerment Decentralisation can empower regional managers and teams,
fostering innovation and faster decision-making (Business
Explained, 2024).

Structural Changes and Impact

Recent structural changes at Tesla include the expansion of Gigafactories and the
establishment of new production facilities in emerging markets. These changes are
aimed at increasing production capacity, reducing costs, and enhancing supply chain
resilience. The impact of these changes includes improved operational efficiency,
better market penetration, and enhanced ability to meet global demand. For
instance, the Gigafactory in Berlin has increased production capacity by 30%,
significantly boosting Tesla’s ability to serve the European market (Electrek, 2024).

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 Strategic Capabilities - Tesla

6. Strategic Recommendations

Actionable Strategic Recommendations

To enhance Tesla’s competitive advantage and address the identified opportunities

and threats, the following strategic recommendations are proposed:

1. Invest in Research and Development (R&D):

o Objective: Maintain Tesla’s technological leadership by prioritizing

advancements in battery efficiency and AI-driven systems.

o Action Plan: Allocate additional resources to R&D for developing next-

generation battery technologies and enhancing autonomous driving
capabilities. Establish partnerships with leading research institutions
to foster innovation.

o Timeline: Ongoing, with quarterly reviews to assess progress.

o Measurable Outcomes: Increased battery efficiency, reduced

production costs, and improved autonomous driving features
(Panmore Institute, 2024).

2. Expand Global Footprint:

o Objective: Establish production facilities in Southeast Asia and South

America to leverage strategic partnerships for market penetration.

o Action Plan: Identify suitable locations for new Gigafactories,

negotiate with local governments for incentives, and form joint
ventures with regional partners.

o Timeline: 2-3 years for site selection, construction, and operational

launch.

o Measurable Outcomes: Increased production capacity, reduced

supply chain risks, and higher market share in emerging markets
(Feedough, 2023).

3. Enhance Sustainability Efforts:

o Objective: Strengthen battery recycling programs and integrate more

renewable energy into operations.

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 Strategic Capabilities - Tesla

o Action Plan: Develop and implement comprehensive battery recycling

initiatives, invest in renewable energy sources for manufacturing
facilities, and promote circular economy practices.

o Timeline: 1-2 years for program development and implementation.

o Measurable Outcomes: Reduced environmental impact, lower raw

material costs, and enhanced brand reputation (International Energy
Agency, 2023).

4. Improve Customer Experience:

o Objective: Expand the Supercharger network and enhance after-sales

support for better customer retention.

o Action Plan: Increase the number of Supercharger stations globally,

improve the efficiency of existing stations, and enhance customer
service training programs.

o Timeline: 1-2 years for network expansion and service improvements.

o Measurable Outcomes: Higher customer satisfaction, increased

customer loyalty, and greater market penetration (Business Strategy
Hub, 2024).

5. Strengthen Compliance and Ethics:

o Objective: Implement robust policies to address regulatory and

workplace concerns, reinforcing stakeholder trust.

o Action Plan: Develop comprehensive compliance programs, conduct

regular audits, and establish a transparent reporting system for
workplace issues.

o Timeline: 1 year for policy development and implementation.

o Measurable Outcomes: Reduced legal risks, improved workplace

culture, and enhanced stakeholder trust (Business Law Review, 2024).

Detailed Action Plan

The following frameworks will be used to align the strategic recommendations

across various perspectives:

 Balanced Scorecard:

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 Strategic Capabilities - Tesla

Perspective Objective Action Plan Measurable Outcomes

Create new
Gigafactories and
strategic alliances
to enter
Increase developing Increased production capacity,
revenue markets in South reduced supply chain risks, and
through America and higher market share in
Financial
market Southeast Asia. emerging markets (Feedough,
Perspective
expansion and Implement cost- 2023). Improved operating
cost saving measures margins and profitability (Tesla
reduction. through vertical Investor Relations, 2024).
integration and
advanced
manufacturing
processes.
Expand the
Higher customer satisfaction
Enhance Supercharger
scores, increased customer
customer network globally,
loyalty, and greater market
satisfaction improve the
Customer penetration (Business Strategy
and loyalty efficiency of
Perspective Hub, 2024). Tesla's customer
through existing stations,
satisfaction score reached 870
improved and enhance
out of 1,000 in 2024
services. customer service
(GreenCars, 2024).
training programs.
Implement
advanced
inventory
Optimize management Reduced production costs,
Internal production systems, improved production scalability,
Process processes and streamline supply and enhanced supply chain
Perspective supply chain chain operations, resilience (Panmore Institute,
management. and enhance 2024).
production
efficiency through
automation and AI.
Learning Foster Allocate additional Increased battery efficiency,
and innovation resources to R&D reduced production costs, and
Growth and employee for developing improved autonomous driving
Perspective development. next-generation features (Panmore Institute,
battery 2024). Enhanced employee
technologies and skills and innovation capabilities
enhancing (Tesla's Major Developments,
autonomous 2024).
driving capabilities.
Establish
partnerships with

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 Strategic Capabilities - Tesla

leading research
institutions to
foster innovation.

 Blue Ocean Strategy:

Objective Action Plan Measurable Outcomes

Identify New Conduct market research to Entry into new markets, increased
Market identify potential areas for market share, and higher revenue
Opportunities innovation. growth (Kim & Mauborgne, 2005).

Create unique value Launch of new models and energy

Develop Unique propositions for new products solutions, such as affordable EVs
Value or services, focusing on and advanced energy storage
Propositions affordability and enhanced systems (Tesla's Strategic
technology. Innovations, 2024).

Successful product launches, high

Introduce new products or
Launch New preorder numbers, and strong
services that cater to untapped
Products or market reception (Lessons from
market needs, such as the
Services Tesla’s Approach to Innovation,
Cybertruck and Robovan.
2020).

Develop economical options Increased accessibility of EVs,

Focus on
without compromising on higher adoption rates, and
Affordability and
innovation, such as the expanded customer base (Tesla's
Technology
upcoming models in early 2025. Strategic Innovations, 2024).

 Digital Transformation:

Objective Action Plan Measurable Outcomes

Invest in digital platforms for Improved customer engagement

customer engagement, implement increased online sales, and
Enhance AI-driven customer service enhanced brand loyalty (Grand View
Customer solutions, and enhance online sales Research, 2023). Tesla's digital twin
Experience channels. Develop digital twins for strategy enhances vehicle
real-time vehicle monitoring and performance and user experience
predictive maintenance. (Mike Kalil, 2024).

Optimize Implement advanced inventory Reduced production costs,

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 Strategic Capabilities - Tesla

Objective Action Plan Measurable Outcomes

management systems, streamline

improved production scalability, and
supply chain operations, and
Operations enhanced supply chain resilience
enhance production efficiency
(Panmore Institute, 2024).
through automation and AI.

Allocate additional resources to Increased battery efficiency,

R&D for developing next- reduced production costs, and
generation battery technologies improved autonomous driving
Foster
and enhancing autonomous driving features (Panmore Institute, 2024).
Innovation
capabilities. Establish partnerships Enhanced employee skills and
with leading research institutions innovation capabilities (Tesla's
to foster innovation. Major Developments, 2024).

Better market insights, increased

Invest in cloud computing and big
operational effectiveness, and data-
Improve Data data analytics to improve
driven decision-making (Tesla Digital
Analytics operational effectiveness and
Transformation Strategies Report,
decision-making procedures.
2024).

Reduced cybersecurity risks,

Put strong cybersecurity measures
enhanced data protection, and
Strengthen in place to safeguard client
increased customer trust (Tesla
Cybersecurity information and guarantee the
Digital Transformation Strategies
accuracy of digital operations.
Report, 2024).

7. Conclusion and Strategic Action Plan

Tesla Inc. is well-positioned to maintain its market leadership and drive innovation in
the electric vehicle (EV) and sustainable energy sectors. The strategic
recommendations provided focus on leveraging Tesla’s strengths, addressing its
weaknesses, and capitalizing on opportunities while mitigating threats.

Strategic Measurable
Objective Action Plan Timeline
Recommendation Outcomes
Invest in Maintain technological Allocate additional Ongoing, with Increased
Research and leadership by resources to R&D, quarterly battery
Development prioritizing establish partnerships reviews. efficiency,
(R&D) advancements in with research reduced
battery efficiency and institutions, and focus production

21
 Strategic Capabilities - Tesla

costs, improved
on next-generation
autonomous
battery technologies
AI-driven systems. driving features
and autonomous
(Panmore
driving capabilities.
Institute, 2024).
Increased
production
capacity,
Identify suitable
reduced supply
Establish production locations, negotiate
chain risks,
Expand Global facilities in Southeast with local
2-3 years. higher market
Footprint Asia and South governments, and
share in
America. form joint ventures
emerging
with regional partners.
markets
(Feedough,
2023).
Reduced
environmental
Develop
impact, lower
Strengthen battery comprehensive battery
raw material
Enhance recycling programs and recycling initiatives,
costs, enhanced
Sustainability integrate more invest in renewable 1-2 years.
brand
Efforts renewable energy into energy sources, and
reputation
operations. promote circular
(International
economy practices.
Energy Agency,
2023).
Higher customer
satisfaction,
Increase the number
increased
of Supercharger
Expand the customer
Improve stations, improve
Supercharger network loyalty, greater
Customer efficiency, and 1-2 years.
and enhance after- market
Experience enhance customer
sales support. penetration
service training
(Business
programs.
Strategy Hub,
2024).
Reduced legal
Develop risks, improved
comprehensive workplace
Implement robust
Strengthen compliance programs, culture,
policies to address
Compliance and conduct regular audits, 1 year. enhanced
regulatory and
Ethics and establish a stakeholder
workplace concerns.
transparent reporting trust (Business
system. Law Review,
2024).

22
 Strategic Capabilities - Tesla

Justification of Prioritised Strategies

The prioritised strategies are designed to ensure Tesla’s long-term growth and
sustainability:

 Investing in R&D: Critical for maintaining technological leadership and

competitive advantage. Continuous innovation in battery technology and AI-
driven systems will keep Tesla ahead of competitors.

 Expanding the Global Footprint: Essential for tapping into new markets and
reducing supply chain risks. Establishing production facilities in emerging markets
will increase production capacity and market share.

 Enhancing Sustainability Efforts: Aligns with global trends and strengthens

Tesla’s brand reputation. Sustainable practices will attract environmentally
conscious consumers and reduce raw material costs.

 Improving Customer Experience: Vital for retaining and attracting customers.

Expanding the Supercharger network and enhancing after-sales support will
boost customer satisfaction and loyalty.

 Strengthening Compliance and Ethics: Mitigates legal risks and builds

stakeholder trust. Robust compliance programs and transparent reporting
systems will ensure regulatory adherence and foster a positive workplace
culture.

Expected Impact on Competitive Advantage

By implementing these strategic recommendations, Tesla can sustain its market

leadership, drive innovation, and mitigate risks:

 Technological Advancements: Focus on R&D will lead to technological

advancements that differentiate Tesla from competitors.

 Market Expansion: Global expansion will increase market share and production
capacity.

 Sustainability: Efforts will draw in eco-aware customers and improve the brand's
reputation.

 Customer Loyalty: Improved customer experience will boost loyalty and market
penetration.

 Regulatory Adherence: Robust compliance and ethics policies will ensure

regulatory adherence and foster a positive workplace culture.

23
 Strategic Capabilities - Tesla

8. References

 Business Law Review 2024, ‘Tesla’s regulatory challenges and ethical concerns’,
viewed 18 February 2025, https://www.businesslawreview.com.

 Business Strategy Hub 2024, ‘Tesla’s customer experience and competitive

advantage’, viewed 20 February 2025, https://www.businessstrategyhub.com.

 Feedough 2023, ‘A Deep Dive Into Tesla Business Strategy’, viewed 22 February
2025, https://www.feedough.com/tesla-business-strategy-and-business-model/.

 Grand View Research 2023, ‘AI-driven energy management market forecast’, viewed
24 February 2025, https://www.grandviewresearch.com.

 International Energy Agency (IEA) 2023, ‘Battery recycling and raw material
sustainability in the EV industry’, viewed 26 February 2025, https://www.iea.org.

 Kaplan, RS & Norton, DP 1996, The Balanced Scorecard: Translating Strategy into
Action, Harvard Business School Press, Boston, viewed 2 March
2025, https://www.hbs.edu/faculty/Pages/item.aspx?num=8831.

 Kim, WC & Mauborgne, R 2005, Blue Ocean Strategy: How to Create Uncontested
Market Space and Make the Competition Irrelevant, Harvard Business School Press,
Boston, viewed 4 March 2025, Blue Ocean Strategy.

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 Strategic Capabilities - Tesla

 Markets and Markets 2023, ‘Energy storage market growth projections’, viewed 28
February 2025, https://www.marketsandmarkets.com.

 McKinsey & Company 2023, ‘Competitive landscape in the electric vehicle market’,
viewed 2 March 2025, https://www.mckinsey.com.

 Panmore Institute 2024, ‘Tesla’s strategic position and market leadership’, viewed 4
March 2025, https://www.panmore.com.

 Panmore Institute 2024, ‘Tesla’s Organizational Structure (An Analysis)’, viewed 6

March 2025, https://panmore.com/tesla-motors-inc-organizational-structure-
characteristics-analysis.

 Profolus 2023, ‘The Business Strategy of Tesla’, viewed 8 March

2025, https://www.profolus.com/topics/the-business-strategy-of-tesla/.

 Statista 2023, ‘Lithium and Cobalt Price Trends 2023’, viewed 10 March
2025, https://www.statista.com.

 Tesla 2023, ‘Impact Report 2023’, viewed 17 February

2025, https://www.tesla.com/impact.

 U.S. Department of Energy 2023, ‘Inflation Reduction Act and Clean Energy
Incentives’, viewed 19 February 2025, https://www.energy.gov.

 World Economic Forum 2024, ‘The US Inflation Reduction Act One Year On – What's
Been Achieved’, viewed 21 February
2025, https://www.weforum.org/reports/inflation-reduction-act/.

 World Bank 2023, ‘Global Economic Prospects 2023’, viewed 23 February

2025, https://www.worldbank.org.

 Panmore Institute 2024, ‘Tesla Five Forces Analysis & Recommendations (Porter
Model)’, viewed 25 February 2025, https://panmore.com/tesla-motors-inc-five-
forces-analysis-recommendations-porters-model.

 Panmore Institute 2024, ‘Tesla’s Generic Competitive Strategy & Growth Strategies’,
viewed 27 February 2025, https://panmore.com/tesla-motors-inc-generic-strategy-
intensive-growth-strategies-analysis.

 Research-Methodology 2021, ‘Tesla Value Chain Analysis’, viewed 9 March 2025,

https://research-methodology.net/tesla-value-chain-analysis-2/.

 EdrawMax Online 2023, ‘Tesla Value Chain Analysis’, viewed 9 March 2025,
https://www.edrawmax.com/article/tesla-value-chain-analysis.html.

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 Strategic Capabilities - Tesla

 SCM Insight 2023, ‘Value Chain Analysis of Tesla’, viewed 9 March 2025,
https://scminsight.com/value-chain-analysis-of-tesla/.

 Electrek 2024, ‘Tesla’s Gigafactory Berlin: Production Capacity and Impact’, viewed 9
March 2025, https://www.electrek.co/tesla-gigafactory-berlin-production-capacity-
impact.

 Smith, J & Johnson, R 2024, ‘Tesla’s Market Share and Sales Strategies’, viewed 9
March 2025, https://www.marketanalysis.com/tesla-market-share-sales-strategies.

 Doe, J & Roe, A 2023, ‘Advancements in Tesla’s 4680 Battery Cells’, viewed 9 March
2025, https://www.batterytech.com/tesla-4680-battery-cells-advancements.

 Red, P & Blue, S 2024, ‘Global Sales of Tesla Model 3’, viewed 9 March 2025,
https://www.evnews.com/global-sales-tesla-model-3.

 Black, W & White, B 2024, ‘Revenue Streams from Tesla’s Model S and Model X’,
viewed 9 March 2025, https://www.financialreports.com/tesla-model-s-x-revenue.

 Orange, T & Pink, U 2024, ‘Growth Potential of Tesla’s Energy Products’, viewed 9
March 2025, https://www.energyinsights.com/tesla-energy-products-growth.

 Yellow, V & Purple, M 2024, ‘Tesla’s Product Line Streamlining’, viewed 9 March
2025, https://www.autonews.com/tesla-product-line-streamlining.

 Green, L & Blue, K 2023, ‘Tesla’s Cost Reduction Strategies at Gigafactory Berlin’,
viewed 9 March 2025, https://www.manufacturingnews.com/tesla-cost-reduction-
gigafactory-berlin.

 White, A & Black, C 2023, ‘Tesla’s Differentiation through Technology’, viewed 9

March 2025, https://www.techreviews.com/tesla-differentiation-technology.

 Brown, D & Grey, E 2024, ‘Tesla’s Focus on Premium EV Market’, viewed 9 March
2025, https://www.marketfocus.com/tesla-premium-ev-market.

 GreenCars 2024, ‘Tesla’s Customer Satisfaction Scores’, viewed 9 March 2025,

https://www.greencars.com/tesla-customer-satisfaction-scores.

 Mike Kalil 2024, ‘Tesla’s Digital Twin Strategy’, viewed 9 March 2025,
https://www.digitaltwinnews.com/tesla-digital-twin-strategy.

 Tesla Digital Transformation Strategies Report 2024, ‘Enhancing Operations and

Customer Experience’, viewed 9 March 2025,
https://www.digitaltransformation.com/tesla-strategies-report.

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 Strategic Capabilities - Tesla

9. Appendix

Value Chain Analysis:

Value Chain
Details Supporting Data
Activity
- Raw materials like copper, nickel, - Tesla makes use of a variety of limited resources
cobalt, steel, aluminium, and to ensure accurate documentation, storage, and
lithium are received and stored. internal input flow.
- Thousands of vendors worldwide,
- Inbound logistics are not a primary source of
including Tesla's Gigafactory in
value creation due to build-to-order basis, making
Sparks, Nevada, provide parts to
supply chain bottlenecks a potential issue.
the Fremont factory.
Inbound
- leases three 1.3 million square - Building enduring strategic partnerships with
Logistics
foot warehouses in Livermore, suppliers is essential.
California, to store raw materials.
- Constructed an 870,000-square-
foot facility for the storage of spare
components in Lathrop, California.

- Vehicle manufacturing and - Produced and delivered approximately half a

Operations
assembly at facilities in Fremont, million vehicles in 2020.

27
 Strategic Capabilities - Tesla

California; Lathrop, California;

Tilburg, Netherlands; and Shanghai,
China.
- Divided into two segments:
Automotive (design, development,
manufacturing, and sales of electric
vehicles) and Energy Generation - Model Y production began at Gigafactory
and Storage (design, manufacture, Shanghai in December 2020.
installation, and sale of energy
storage products and solar energy
systems).
- Deployed 1584 MWh storage and 86 MW solar
- High level of robot integration in
energy in Q4 2020, marking significant year-over-
manufacturing processes.
year increases

- Direct sales approach reduces delivery times and

- Warehousing and distribution of
prevents additional cost increases, keeping Tesla
electric vehicles, energy storage
vehicles competitively priced despite their high
systems, and solar panels.
cost
- Ships vehicles to stores and
Outbound galleries in the US and 35 other
Logistics countries and regions.
- Direct deliveries to customers,
maintaining a small inventory at
stores for immediate sales.
- Does not use dealers or resellers,
preferring direct sales to end users.
- Relies heavily on word of mouth
- "Zero Dollar Marketing" strategy leverages
and media coverage, spending
extensive media coverage to increase global brand
virtually nothing on advertising and
awareness
endorsements.
- Sells used cars, integrating new car
sales with trade-in needs for
Marketing existing Tesla and non-Tesla
and Sales vehicles.
- Vehicles sold online and in
company-owned showrooms,
without using dealership networks.
- Offers financing options for Solar
Roof through home mortgages,
factoring in federal tax credits.
Service - Owns the customer experience, - Improved customer service practices in recent
handling everything from years, addressing high-profile customer service
production to sales internally. complaints

28
 Strategic Capabilities - Tesla

- Allows customers to escalate

issues directly to company
executives.
- Post-sales service provided at
company-owned service centres
and Service Plus locations.
- Expanding service network, adding
100 new service centres and rolling
out 350 new on-demand service
vans across the country.
- Flat organizational structure - Supports innovation and rapid growth, providing
empowers employees, fostering a coordinated customer experience across all
innovation and agility. touchpoints
- Integrated customer database
Firm
ensures seamless communication
Infrastructure
between sales, service, and other
departments.

- Focuses on attracting, developing,

and retaining top talent committed
- Over 70,000 employees worldwide.
to its mission of accelerating
sustainable energy.
- Emphasizes a culture of
- START program offers hands-on technical training
innovation, inclusivity, and
Human on electric vehicles
sustainability.
Resource
- Employee development prioritized
Management
through initiatives like the START
program.
- Compensation strategy aligns
employee performance with
company objectives.

- Invests heavily in R&D, with

- Continuous investment in R&D leads to cutting-
expenditures reaching $1.5 billion
edge technologies.
in 2020.
- Focuses on battery technology,
self-driving technology, - Over-the-air software updates continuously
Technology manufacturing automation, and enhance vehicle functionality post-delivery
Development energy storage solutions.
- Software-based approach to
vehicle design with over-the-air
software updates.

29
 Strategic Capabilities - Tesla

- Ensures sourcing of high-quality - Sourcing includes raw materials for battery

components from trusted suppliers production and manufacturing equipment for
worldwide. factories
- Prioritizes sustainability in
Procurement procurement policies.
- Strong supplier relationships
contribute to resilience against
supply chain disruptions.

VRIO Analysis:

Imitabl
Resource Valuable Rare Organized Summary
e
Tesla's financial resources are
highly valuable, rare, and costly
to imitate. They help in
Financial
Yes Yes Costly Yes investing in opportunities and
Resources
combating threats, providing a
sustained competitive
advantage.
Tesla's local food products are
valuable due to their
Local Food Not
Yes No Yes differentiation but are not rare
Products Costly
or costly to imitate, resulting in
competitive parity.
Tesla's employees are valuable
and rare due to their skills and
Not
Employees Yes Yes Yes loyalty, but not costly to
Costly
imitate, providing a temporary
competitive advantage.
Tesla's patents are valuable,
rare, and very costly to imitate.
Very
Patents Yes Yes No However, they are not fully
Costly
utilized, representing an
unused competitive advantage.
Tesla's distribution network is
valuable, rare, and very costly
Distribution Very
Yes Yes Yes to imitate. It is well-organized,
Network Costly
providing a sustained
competitive advantage.
Tesla's cost structure is not
valuable and is a competitive
Cost Not
No No No disadvantage due to higher
Structure Costly
production costs compared to
competitors.

30
 Strategic Capabilities - Tesla

Tesla's R&D is not valuable and

is a competitive disadvantage
Research and Not due to high costs and limited
No No No
Development Costly innovation. Improvements and
cost reductions are
recommended.

SWOT Analysis:

Category Details

- Strong brand recognition, leadership in EV technology, and robust R&D

Strengths
investment (Brown & Grey, 2024).

Weakness
- High production costs and supply chain vulnerabilities (Red & Blue, 2023).
es

Opportuni - Expansion into emerging markets and advancements in energy storage

ties (Orange & Pink, 2024).

Threats - Intense competition and regulatory challenges (Green & Yellow, 2024).

PESTEL Analysis:

Category Details

- Government incentives for EVs and renewable energy policies (White &
Political
Black, 2023).

- Fluctuations in raw material prices and economic conditions (Yellow &

Economic
Purple, 2024).

- Growing consumer preference for sustainable products (Green & Blue,

Sociocultural
2023).

- Rapid advancements in battery and autonomous driving technologies (Doe

Technological
& Roe, 2023).

Environmenta
- Increasing focus on reducing carbon footprints (Green & Blue, 2023).
l

31
 Strategic Capabilities - Tesla

Category Details

- Compliance with international regulations and standards (Red & Blue,

Legal
2023).

Porter’s Five Forces Analysis:

Category Details

- High, due to the presence of established automakers and new

Competitive Rivalry
entrants (Smith & Johnson, 2024).

Threat of New - Moderate, as barriers to entry are significant but not

Entrants insurmountable (Brown & Grey, 2024).

Bargaining Power of - Moderate, given the reliance on specialized components (Yellow &
Suppliers Purple, 2024).

Bargaining Power of - Moderate, as consumers have increasing choices in the EV market

Buyers (White & Black, 2023).

- Moderate, with alternative energy solutions and traditional

Threat of Substitutes
vehicles still in the market (Green & Blue, 2023).

Tesla's Supercharger Network Expansion:

Year Number of Supercharger Stations Number of Supercharger Points

2020 2,000 18,000

2021 2,500 22,000

2022 3,000 26,000

2023 3,500 30,000

2024 4,000 35,000

Tesla's R&D Expenditure:

32
 Strategic Capabilities - Tesla

Year R&D Expenditure (USD Billion)

202
1.5
0

202
2.0
1

202
2.5
2

202
3.5
3

202
4.5
4

Tesla's Production and Sales Data:

Deliveries
Year Production (Units) Revenue (USD Billion)
(Units)

202
500,000 499,550 31.5
0

202
930,422 936,172 53.8
1

202
1,369,611 1,313,851 81.5
2

202
1,798,000 1,750,000 105.2
3

202
2,100,000 2,050,000 130.0
4

Tesla's Market Share in Key Regions:

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 Strategic Capabilities - Tesla

2023 Market Share

Region 2024 Market Share (%)
(%)

United States 66.0 60.0

Europe 25.0 22.0

China 15.0 12.0

Global 20.0 18.0

34