Sample Admission Essay on Tesla Motors


Tesla Motors is an automotive firm that was established in 2003 to manufacture electric vehicles. The company’s main goal was to manufacture an electric vehicle that served the same purpose as Porsche, but more environmental conscious than most Toyota brands. According to Green Car Report, Tesla Motors is planning to introduce the Tesla Model X Electric SUV in 2015, and the car is already under test drive (Voelcker n.p). Tesla Motors usually targets customer from cities who value technology and are environment-conscious. Tesla Motors has established itself as a company that manufacture vehicles that incorporates both technology and environmental consideration.


The market for battery electric vehicles (BEVs) has been on the rise due to their technology and environment considerations. The market for BEVs is likely to hit 53% of all vehicles that use electricity by 2020, thus, the forecasted future sales expected to go up (Mangram 290). The Boston Consulting Group (BCG) is already anticipating annual sale of 1 million BEVs before the end of 2015. The firm’s major segments include automotive sales and development services. Tesla’s long-term strategy is to broaden its brands to take advantage of the expanding market. The company has not been performing well, as the financial statement for the first quarter of 2011 indicated total revenue of $49 million while the company made a net loss of $48.9 million (296). On geographical information, the US is the largest market for Tesla Motors’ vehicles, as it took half of Tesla’s total sales by purchasing 3,900 in 2014 while China was second largest client for Tesla (Jones n.p). The firm produced 7,535 units in the first quarter, but managed to sell 6,457 units.

According to Tesla Motors strategy, Tesla did not enter the car market to make cheaper, better, or alternative cars, but rather superior model of cars. The long-term goal for the firm is to have some products that accumulate cash while others use cash to supplement growth (Pride and Ferrell 40). The firm’s BCG is as explained below.

Star: Stars indicate high growth and significant market share for Tesla’s products. Tesla Model X Electric SUV has the capacity to expand the firm’s market share, based on the success of other brands.

Question Mark: Basing Tesla on the BCG market analysis, the firm’s current issue is question marks, which indicate a rise in revenue and profit form electric cars. High competition has prompted the firm to strategize on further investment in the electric cars.

Dog: This includes a subordinate share that the firm has, which does not have a high prospect of growth. Tesla has invested in home and business batteries, but does not expect much from the product as it expect from electric cars.

Cash cow: This illustrates Tesla’s dominance on market share, but low possibilities for growth. This is due to a decline in the cash flow, as other firms are emerging to compete with Tesla’s brands.


Tesla is a disruptive innovator that does not focus on mass-market production, but rather meet different customer needs. The main customers are business executives, entrepreneurs, and other city residents who are technology-sensitive and environmental conscious. They do not mind about the price, but the level of technology and comfort. The price of Tesla Model X is likely to be almost the same as that of Model S, which is between $69,000 and $80,000 (Tesla Model X Review n.p). Tesla’s Showroom is located in malls where many people are likely to see the vehicles in display.

Customers prefer Tesla vehicles due to their high performance and the falcon doors that allow passengers to get out of the car even in a squeezed parking. However, lack infrastructure to charge Tesla vehicles has made many customers avoid purchasing Tesla vehicles.

Tesla’s SWOT Analysis


  • Innovative electric technology
  • Development of strong R&D department
  • Financially secured company
  • Large production capacity


  • No developed infrastructure for electric cars
  • Does not manufacture diesel vehicles
  • Brand not known globally


  • Growing support from governments on green energy
  • Rising oil prices and limited supply
  • Innovative technology


  • Emergency of better technology
  • Growing level of competition
  • Economic slowdown and costly brand


As an electric car manufacturer, Tesla Motors has managed to win the hearts of numerous customers, who value technology and environment more than monetary gains. The new Tesla Model X is expected to enhance the firm’s market share due to its innovative character and comfort. Tesla shops are situated in malls where many prospective customers are likely to see them. However, lack of infrastructure to charge Tesla vehicles has made many customers from the countryside to put low consideration on the vehicles; thus, the firm should team up with respective governments to set up stations for charging the vehicles.


Works Cited

“Tesla Model X Review.” Plugin Cars (2015). Web. 29 May 2015.

Mangram, Myles Edwin. “The Globalization of Tesla Motors: A Strategic Marketing Plan Analysis.” Journal of Strategic Marketing 20.4 (2012): 289-312. Business Source Complete. Web. 29 May 2015.

Pride, William M, and O C. Ferrell. Marketing. Australia: South Western Cengage Learning, 2010. Print.

Voelcker, John. “Why Tesla Model X Electric SUV Is Late: Range, Towing, ‘Falcon Doors’” Green Car Reports, February 9, 2015. Web. 30 May 2015.