This is owing to the fact that both cars have a complex building. However, the company attributes this challenge mainly due to the difficult and challenging design of the Model X that slows down the production process. Additionally, the company’s suppliers are unable to produce the parts fast enough to keep up with the increasing demand. Tesla Motors believes that this is because their suppliers did not expect the company to be successful and hence they were not prepared to produce the parts in large numbers. This contributes to the limited production and hence affecting the performance of the company. The concerns of the greenhouse effects and the global warming are major topics of the discussion among the consumers.
Through the analysis of the five forces model, this paper will determine the performance of the Tesla Motors and also determine the potential profit attractiveness of the alternative fuel vehicle industry. It is predicted that in the future, more companies will try to enter the industry owing to the government’s regulations for more cars that are fuel efficient and the society’s push for the development of the more eco-friendly ecosystem.
However, there is a significant requirement of the capital resources that are required for the creation of the sustainable, eco-friendly automobile brands, and the huge investment that is required for the extensive research and development. This is, in fact, the major challenge that affects the sustainability and performance of the Tesla Motors Inc. The attractiveness of any industry is determined by the possibilities of the earning return above the cost of the capital. Generally, industry’s attractiveness is based on the competitive landscape.
As such, the more intense the competition is, the lower the chances of gaining above the normal returns. Tesla Motors operates in the premium segment that fully focuses on the electric vehicles (EVs). Therefore, to analyze the current performance of the Tesla Motors and the industry as a whole, it is important to take note of the fact that the existing manufacturers face significant industry-wide changes. The technological advances, the impact of the new regulations on the vehicle emissions and the shifting customer trends is forcing the industry to turn into the EV segments. Various forms of transportation are available to the consumers
Please type your essay title, choose your document type, enter your email and we send you essay samples