Strengths •Innovative products and strong differentiation from competition Tesla is a pioneer to promote sustainable transport with fully electric vehicles and energy storage products. The company claims to be “the world’s only vertically integrated Energy Company” • High performanceModel S and Model X include all-wheel drive dual motor and autopilot options. Model X offers exceptional safety. Over-the-air software updates are also available on these models. •Attractive designThe cars are very aesthetic featuring a sport style. Tesla’s design chief, Franz von Holzhausen, was tasked with “building a world-class design competency” •Strong Marketing imageTesla vehicles appear very attractive to the young generation who is more aware of environmental issues and keen on new technology.Weaknesses •PricesPrices of Model S and Model X are high and do not address a mass market. Tesla has the challenge to reduce its manufacturing costs. • Dependence on a limited fleet of electric vehiclesAutomobile customers generally expect a variety of vehicles offered in a manufacturer’s fleet. Tesla offers only 3 models. •Growing the network of Tesla stores, galleries, service centers and Superchargers will require significant cash investments and management.Opportunities •US Government Subsidies:Spacex has benefited from an estimated $4.9 billion in government support in 2015. •European FundsHorizons 2020 led Tesla to make the project of building a new “gigafactory” batteryproduction plant in Europe. •Sustainable development policiesBoth American and European governments support electric cars and solar panels in the hope of promoting widespread adoption in order to reduce carbon emissions. They offer grants or tax credits to cover part of the cost of solar installations.Threats •CompetitionCompetitors such as BMW, Daimler, General Motors, Toyota, and others offer or plan to offer hybrid or fully electric vehicles, seeking alternatives to the fuel vehicle market. • InfrastructureAvailability of Superchargers may not grow enough to expand as planned on the market• Shortage of materials, in particular for lithium-ion cells, could harm Tesla’s business.