Threats and Opportunities for Tesla

Tesla Opportunities Weight Rating Score Strong Demand in Europe Assembling in Netherlands Battery market Launched home battery this summer China, other Asian markets Struggling to gain traction in China New Products More or less on schedule Other Vehicle development Nothing in the pipeline Economic Incentives Does well Threats Low Gas Prices Gas prices do not affect Tesla demand Increased competition Technological superiority Trade Barriers China a notable problem Economic slowdown Not expected to affect Tesla Product launch delays Some minor delays Charging Station delays Rollout ok Whether Tesla is doing well in its industry or not sort of depends how the industry is defined.

Among electric car makers, Tesla has demonstrated technological superiority over the past few years. There have been many new entrants, both startups and established car companies, but none have been able to challenge Tesla on technology, so the company has maintained its competitive advantage. It has not yet converted this market share in a way that would make it anything other than a niche vehicle, however. In the context of the overall automobile market, Tesla is an upstart that has proven little, despite offering tremendous promise.

The company's aim is to grow to become a major global automaker, which is why the company has sought to build a presence in Europe and Asia, even when it has a miniscule share in the North American market. While Tesla has been able to succeed in building its brand in Europe, the company has struggled to gain a foothold in China. There are significant trade barriers, and arguably the greatest competitive threat will come from China, where Tesla lacks any meaningful intellectual property rights protections.

Overall, the company's performance has been strong for a startup, but it is too young and small to be considered a major player in the automotive industry; the hope is that it will be a disruptive player, however, and will be able to maintain its technological leadership in the long run. New products are the key to the company's growth right now, because Tesla needs to roll out new products in order to build its share, and increase its revenues, which are necessary in light of the high fixed costs.

The company has one new vehicle this month, and is expected to launch a mainstream electric vehicle in 2016. How that vehicle compares with the competition will say a lot about what sort of.