Tesla Plans of Diversifying Into Other Business
Tesla is experiencing a lot of competition in the market, and CEO Elon Musk is planning for diversification as a tool of remaining competitive. The leadership of Tesla is planning a significant international expansion to help them in dealing with business losses experienced at the start of 2019 (Wright, 2020). Currently, the company is the leader in the manufacture of electric vehicles, and they plan to diversify its business and venture into the energy market. Considering the issue of climate change across the globe that triggers people to look for alternative sources of energy, the decision might become successful. The decision would offer Tesla a vast opportunity and boost its shares in the international market.
The success of the new strategy mainly depends on how Tesla meets the need of the consumers. Production of solar roof tiles and the home battery is the business that the organization aims at venturing into. The launched products have not reached many consumers yet, but with the best strategy in the market, the business would bring a lot of revenue to Tesla. According to Wright, the idea is excellent, considering there is a need for energy independence across the globe (2020). Giving consumers an option for alternative sources of environmentally friendly energy is likely to get support from different departments, thus increasing demand for the products. Despite the expected benefits and functions that the new products would bring to the consumers, the strategy might fail to reach a significant market if the organization does not put the best marketing strategy in place. The plan would only succeed if the new product would be cheaper and eliminate dependency on burning oil and coal.
Wright, M. (2020). Elon Musk Teases Tesla’s Plans to Diversify Beyond the Automobile. Retrieved 30 March 2020, from https://www.motorbiscuit.com/elon-musk-teases-teslas-plans-to-diversify-beyond-the-automobile/