Opportunities, Trends, and Sustainability: Tesla Inc.

Opportunities, Trends, and Sustainability: Tesla Inc.

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Opportunities, Trends, and Sustainability: Tesla Inc.

Tesla shows great determination in improving its activities but the company must really be keen on the factors that would help it become more productive. The company’s leadership needs to watch out for the possible opportunities the firm could exploit to further its activities, and possibly focus on developing products based on advanced technology. The study elaborates how Tesla needs to watch out for legislations and policies that impact on business activities to avoid repercussions that could affect normal operation. Adhering to the ever changing policies and legislations, a phenomenon that is fast developing among manufacturers, shall allow Tesla to produce products that meet the required standards as well as achieve sustainability.

Entrepreneurial Opportunities

Tesla must identify the external opportunities that could allow it venture into the market as it desires. The team in charge of operations at the company needs to employ the most suitable structure for learning the opportunities the firm could use to advance its operations, and a suitable way to perform the analysis is to use the PEST framework. The PEST analysis has become increasingly applicable in different contexts since its introduction by Francis Aguilar in one of his books.

The company needs to consider the opportunities it stands to gain from political factors considering that the area presents several chances for making significant strides. The increased international trade agreements, for example, present a good opportunity for Tesla to enter into more trade deals. The U.S., for instance, now trades with many nations across the globe, and is doing all it can to refine its trade policies for the better (Tesla Inc., 2018). Such practices allow Tesla to bring in vital components to ease production, and also permit the selling of finished products into foreign markets (Tesla Inc., 2018). Even as the trade war between the U.S. and China continues to take effect leaders from both nations are optimistic the tussle will come to an end, thereby allowing the two countries to trade well again. The political stability in most of the markets where Tesla sells is another opportunity the company could utilize to advance its activities. Political stability presents the chance to indulge in business practices without any fears of conflicts or abrupt changes in tax policy.

Tesla needs to watch out for the opportunity it could gain from the economic factors considering that this sector offers chances the company could utilize to advance its operations. An economic opportunity the company could utilize is the lowering costs of production, which presents a chance to generate more revenues. The price of batteries, for example, is going down which is promising for the company. The decreasing price of renewable energy is another opportunity the company could use to advance its operations (Leiby, 2018). The development in technology facilitates production of renewable energy, thus causing the price to fall. More importantly, the increased economic growth in many markets where Tesla sells could present a good opportunity for the company to sell more units than it would happen when the economy is declining.

The social factors presents some opportunities Tesla could employ to advance its operations. First, many societies now acknowledge the need to protect the environment from further harm, which drives many people to embrace renewable energy and electric vehicles (Tesla Inc., 2018). The social drive puts Tesla in a good position to sell its EVs thereby giving the company a good platform to generate more revenue. The drive to acquire quality items is becoming a social phenomenon in many societies including the U.S., and this gives Tesla a good chance to reach out to buyers considering the high quality products it produces.

More importantly, Tesla should consider how it would benefit from the opportunities emanating from technological factors. The growth of technology and innovation worldwide is an opportunity Tesla could use to gain wider market share. Other than the operators in other fields who now understand the essence of cutting edge technology, motor vehicle manufacturers are now witnessing escalating competition because each producer is trying to employ the latest designs and technology (Tesla Inc., 2018). Tesla is already distinguishing itself technologically through its production of electric cars, a scenario that offers the chance to reach out to more consumers.

Entrepreneurial Assessment

Tesla should take serious consideration of technological growth because the development presents an opportunity the company can use to distinguish itself. Already, Tesla is differentiating itself from other car manufacturers through its creation of all-electric cars. Bearing in mind that the present rate of technological advancement is exerting significant transformation on the way people work and live, Tesla should see this as a suitable opportunity to come up with even better products. The company should learn from a report by the World Economic Forum (2017), which informs how most of the technologies are yet to achieve their full potential and adding to inclusive worldwide productivity. The study by World Economic Forum (2017) finds that unlocking or attaining their full capacity will largely depend on the business and government’s readiness and capability. Already, companies such as Toyota and Daimler AG in the U.S. are making substantial progress in their advancement in technology use through their production of electric cars that are equally appealing to consumers. Toyota, for example, manufactured the electric Toyota RAV4 EV in 2010 and continues to advance the model (Toyota Motor Sales, 2019). Mercedes-Benz, on the other hand, unveiled the Mercedes-Benz B250e in 2017, and was ranked a powerful car considering its top speed of 150km/h with a battery capacity of 36 kWh (Daimler AG, 2019). Tesla, therefore, should not relent in its quest to employ the latest technology to distinguish itself even further.


Today, businesses need to watch out for the major trends to avoid harming their operations in one way or the other. Tesla should be keen on the increased attention businesses pay on legislations and policies government in the U.S. produce, considering the country to be the key market domain in this case. U.S. Tesla needs to be conversant with policies like the ones produced by the Advanced Research Projects Agency – Energy to be at a position of improving its operations. ARPA-E functions under the U.S. Department of Energy with the motive of offering financial aid to projects that would help the nation reduce its dependence on foreign energy imports, and lower the country’s energy-connected emissions, including GHG (greenhouse gases) (U.S. Department of Energy, 2019). The company must also understand the tax policies, which have direct impact on the company’s performance. The Internal Revenue Service taxes about $2,400 to $7,600 per new electric vehicle acquired for use in America (Tesla Inc., 2018), and the company should have such information at hand. The company should also comply with environmental laws, as well as other regulations touching on health, hazard prevention, and employee management. Even as compliance continues to become a vital factor for companies failing to adhere to such legislations could have adverse effects on the firm’s activities. Usually, the business might be forced to pay huge fines, or undergo a legal proceeding that would have reputational and financial damages on the manufacturer.

Impact on Opportunities

The increased need to comply with policies and legislations will certainly impact on the development of Tesla’s opportunities. The federal and state governments develop policies that ensure companies operate in acceptable ways. Adhering to such regulations, therefore, shall allow the company to employ technology in such ways that the results do not yield negative effects (Tesla Inc., 2018). Adhering to the policies will guide the company to develop products that do not affect the environment in any way, and this shall improve the company’s interaction with the societies where it operates (Tesla Inc., 2018). Unfortunately, the regulations might be so stiff in other nations, thereby affecting the company’s operations in these regions. Locally, some states might enforce stiff taxation laws, which could derail the company’s effort to introduce high-end electric cars. Otherwise, complying with the legislations will lead the firm towards the right direction, and may be an opportunity to develop more standard and quality products.

Impact on Sustainability

It is apparent complying with the regulations governments and international bodies develop will impact on the company’s sustainability. Tesla already understands this and is working towards creating frameworks that would guide it towards achieving compliance. Tesla functions in accordance with its environmental policy, which guides it on how to address different environment-related issues (Tesla Inc., 2018). The company develops such guidance to align its undertakings with the requirements of ISO 14000, which offers practical tools for corporations of all forms aspiring to manage their environmental obligations (ISO, 2019). Adherence may promote sustainability because the company gets the chance to learn specific approaches such as life cycle, communications, and audits analysis that may impact on sustainability. Adhering to the policies and legislations is also likely to promote sustainability in the way the company shall get the chance to serve for longer without any impediments that could distract its activities. The company, for example, will not indulge in acts that could lead to its closer or suspension if it follows the policies and legislations, and this will result in sustainability.


The report dwells on why Tesla needs to use its opportunities effectively to achieve its goals and objectives. Using the PEST analysis illustrates how the company could exploit political opportunities such as improved trade policies and political stability, and economic chances such as reduced costs of production, stabilized markets, and economic growth. Tesla may also benefit from social and technological opportunities such as increased urge to protect the environment and desire for quality items, and growth in technology globally. The EV maker, however, should pay considerable attention on technology advancement because the opportunity offers the chance to develop products that are more appealing to buyers. The firm should ensure it complies with policies and legislations because in the contemporary times failure to comply with such regulations could attract huge fines and legal battles. Adhering to the legislations may also increase the company’s chances of developing products of better quality, as well as promote sustainability.


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