Tesla’s Business Model and Development Strategy: A SWOT Analysis

Abstract

Driven by the global energy transition and carbon neutrality goals, electric vehicles have become a key force in sustainable development. Since its establishment in 2003, Tesla has rapidly grown into a leader in the global electric vehicle industry through its innovative business model and technological advancements. By 2024, Tesla had delivered over 5 million vehicles, surpassing traditional automakers in market value. However, Tesla faces many challenges, including supply chain vulnerabilities, battery technology breakthroughs, market competition, and geopolitical risks. This study employs a SWOT analysis to evaluate Tesla’s internal strengths, weaknesses, opportunities, and threats. The findings highlight Tesla's core competitiveness in battery management and autonomous driving but also reveal challenges such as solid-state battery disruption, 4680 battery yield issues, and regulatory delays in L4 autonomous driving. To address these risks, Tesla must enhance supply chain resilience, accelerate technological innovation, and adapt regional strategies to mitigate geopolitical uncertainties. This research provide insights into Tesla's business strategy and serves as a reference for the global electric vehicle industry in promoting sustainability and reducing oil dependence.