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ID number:480225
Author:
Evaluation:
Published: 03.03.2020.
Language: English
Level: College/University
Literature: n/a
References: Not used
Extract

Therefore, there are the few threats which Tesla faces to maintain the business despite the unpredictable conditions of the market. Tesla has launched many autopilot vehicles, and not all of them have been successful in case of an accident. The company has faced lawsuits and claims related to the failure of technology in their products. If these liability claims continued, then Tesla may be subjected to greater financial setbacks. Besides Tesla, Inc. faces aggressive competition from both alternative fuel vehicles and self-driving technology. Due to highly complex engineering for innovative vehicles, Tesla’s cars and other energy products have exhibited major flaws in many cases. Also, to its unstable manufacturing conditions, it suffers from disbelief among the public about its long-term existence, which can result in a deficiency in further business development. Too withal Tesla highly depends upon customers willingness to adopt electric vehicles. It is also interesting that, according to survey from YouGov, US adults still feel unsafe, to walk around self driving cars and it also affects the sale of Tesla's automatic cars. Tesla can face major suspensions in the supply of manufacturing materials due to the increased prices. Tesla uses lithium in batteries, and it is a highly reactive and explosive element, so there were a few cases where their cars have caught fire and vented smoke, which has defamed the company on a major level. As there are no proper regulations for self-driving in many countries Tesla’s sale is affected by the self-driving restrictions in many areas. Tesla’s entire reputation is built upon the revolutionary personality of Elon Musk. But recently, his strange behaviour and impulsive reactions are affecting Tesla’s worth as a brand. For example, recent incident about smoking marijuana on Joe Rogan’s podcast created controversies. Subsequently, Tesla’s stock value dropped close to 9 percent by this unexplainable behaviour.…

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