Let's invest safe! He is a contributor to Seeking Alpha where he has written on a wide variety of sectors. “Tesla’s long-term competitive advantage will be … Funds and their managers have faced criticism over the past decade for failing to match the broader market's performance, despite their higher fees and the advantages they claimed to have over other market participants. Tesla is in the automobile industry and is currently leading the market for electric cars with 45% of electric cars sold being Tesla’s. c) Advanced Software. Michael E Porter has highlighted three generic strategies that can be used to generate competitive advantage. SWOT Analysis of Tesla Inc. – Recommendations. Competitive advantage. He is also a book reviewer at the Online Book Club for Readers, focusing on works relating to business and finance. Being recognized as first in an industry builds customer loyalty and brand recognition, and Tesla has the competitors edge of being a leader in their category for the foreseeable future (Emongo, 2015). He can be followed on Twitter at @CashCreep. They've … … jo.src = 'https://www.financialjuice.com/widgets/voice-player.js?mode=inline&display=1&container=FJ-voice-news-player&info=valuewalk&r=' + r; Figures collated from FinViz, Morningstar and TheStreet. How has Tesla become one of the main competitors in the automobile market? Furthermore, the electric car market itself was valued at $162.34 billion in 2019, and is projected to grow to $802.81 billion by 2027. Based on these initial two products, but especially the latter, people who “don’t like electric cars,” adore Tesla. As if that wasn’t enough, Tesla produced the cheaper Model S sedan that ended up winning just about every big auto award. “ValueWalk provides an invaluable service—bringing together the best and most important commentary in the world of value investing, all in one place.”. With this reputation for excellence, again, who’s going to buy an affordable Tesla competitor when a comparable Tesla is on the market? Tesla, specifically, would seem at first glance to be in pole position to benefit from this projected growth. First, it possesses a reputation of a company actively involved in research and development and constantly achieving positive results. I wrote this Quora answer recently discussing my thoughts on why Tesla will kick butt versus other manufacturers. This … Tesla benefits from the fact that its electric cars have the greatest range - the Model S, Model 3, and Model X can travel from 565-600 kilometers on a single battery charge, and are the top three ranked electric cars by range as of 2019. Or, they are simply far too slow-moving to compete in this new sector, which is no better for their businesses and shareholders, but at least lets them off the hook a bit morally. GM has announced the Chevy Bolt, which could theoretically compete with the Tesla Model 3 (on range and cost), but it is targeting ~30,000 sales a year rather than Tesla’s target of ~500,000. Transcript: It is time to talk Tesla’s competitive advantages or who knows lack thereof however before doing that I would like to recall a story from the recent past in one of the first videos of this case study I compared Tesla and Apple so please allow me to provide a brief side note here … Continue reading Tesla competitive advantage (2020) : Why Tesla and Apple are so very similar → Transcript: It is time to talk Tesla’s competitive advantages or who knows lack thereof however before doing that I would like to recall a story from the recent past in one of the first videos of this case study I compared Tesla and Apple so please allow me to provide a brief side note here … Continue reading Tesla competitive advantage (2020) : Why Tesla and Apple are so very similar → If you're into strategy and tech trends like I am, it's a short read. There's no need to "keep factories running at full tilt". This is one area where Tesla has had a significant lead for some time. It gives the company the competitive advantage it has over its competitors in the industry. Volkswagen will spend €60 billion ($70.92 billion) on developing electric vehicles, hybrid vehicles and digital technologies by 2024. Even a “recall” can be done virtually, Tesla has shown. I think it’s safe to say that cars of 2025 and 2035 will be very different animals than cars of 2015. To connect with Zach on some of your favorite social networks, go to ZacharyShahan.com and click on the relevant buttons. This makes it unwise to recommend Tesla as a prospective investment at this time, especially as it currently trades at a premium to both the transportation equipment manufacturing sub-sector and to the S&P 500 (SPY). The following are just a sampling of the advantages. © 2020 VALUEWALK LLC. These strategies are cost leadership, differentiation and focus. Again, there’s no sign that another electric car manufacturer has picked up on the importance of the Tesla Supercharger network, as none of them are implementing anything that genuinely compares. And note that Tesla’s batteries are valuable far beyond electric vehicles, and it is doing quite well winning stationary energy storage contracts. Tesla (TSLA) - Get Report is an interesting study in competitive advantage, as they are at once a luxury car and technology company. In the future, cars are going to be computers on wheels, and Tesla is leading us there. Will Tesla Finally Make its Way to India? Multiple firms, such as AMETEK (AME), Johnson Electric (JELCF), and WEG (WEGZY) are making electric motors. Volvo Buses To Offer New Alternative For Charging Electric Buses: Panto Up. For … Tesla Inc (NASDAQ: TSLA) recently broke the 400-mile battery charge threshold. Being recognized as first in an industry builds customer loyalty and brand recognition, and Tesla has the competitors edge of being a leader in their category for the foreseeable future (Emongo, 2015). Since it went public in 2010, and according to figures going back to at least 2006, Tesla has reported consistently rising revenues in tandem with consistent net losses. We find the company's perspective as an aftermarket supplier of Tesla accessories interesting and are happy to share its content free of charge. He has been covering green news of various sorts since 2008, and he has been especially focused on solar energy, electric vehicles, and wind energy since 2009. [Full disclosure: I’m long TSLA… for obvious reasons.]. Which World & Business Leaders Have The Best Vocabulary. And not just in … We believe Tesla has a competitive advantage in batteries that is under-appreciated by investors. Does Tesla Have a Competitive Advantage? Hedge funds have been one of the big winners of 2020. Furthermore, Tesla is not in excellent financial shape to counter the challenge that these larger competitors pose. Based on this aspect of the SWOT analysis, Tesla must maintain competitive advantage to remain profitable despite aggressive competition from large automotive firms. We won't send you spam. But more importantly, it also creates a better customer buying experience. The barriers and competitive advantages for Tesla Motors. It used to be that cars were big machines with small computers in them. But Tesla has an advantage that many people don’t understand: It is much more than an automotive company; it is a technology company building technology platforms. Tesla has huge competitive advantages over other automakers in the US. In fact, Musk expects Tesla’s manufacturing prowess to give it an edge over other EV-makers. EXECUTIVE SUMMARY by @GeorgeHawley "A company succeeds by profitably pursuing their mission.... 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