Tesla Ecosystem: great opportunities

By John Dudovskiy
May 1, 2021

Tesla ecosystem at the moment comprises electric vehicles, charging infrastructure and solar systems. Energy solution products such as Powerwall, Powerpack and Solar Roof, enable homeowners, businesses and utilities to manage renewable energy generation, storage, and consumption.  The following are important considerations related to Tesla ecosystem:

1. Tesla mobile app is the linking point of various elements of its ecosystem. Although Tesla ecosystem is rather small at present, nevertheless, it is highly sophisticated. Tesla mobile app provides customers control over many features of cars. The same app is also used to control solar panels and Powerwall so that customers have power flow detail and control in a single place.[1] The alternative fuel vehicles manufacturer can integrate additional range of products and services into the same app to further strengthen Tesla ecosystem.

Tesla Ecosystem

2. Supercharging networks are competitive advantage and important element of Tesla’s ecosystem. Unlike its competitors, Tesla heavily invested in developing and spreading its supercharging networks from the early stages of its business operations. Currently, Tesla has more than 20,000 Superchargers globally, which is unparalleled in electric auto industry. Growing numbers of charging stations strengthens ecosystem of Tesla and creates solid foundation for long-term growth of the business.

3. Immense potential for development. There is a consensus among industry analysts about immense potential of Tesla ecosystem. Analysts forecast that “the electric vehicle will not be simply a plug-in replacement for the legacy gas-burner, but rather a part of a new paradigm that includes charging infrastructure, vehicle autonomy, new ownership models and renewable energy.”[2]

Moreover, self-driving cars are widely seen as inevitable future of transportation for medium to long-term prospects. There are differences in strategies of leading market players to establish their firm presence in self-driving segment. On one hand, companies such as Alphabet Inc.’s (Google) and Apple are seeking to form strategic relationships with car rental giants such as Avis and Hertz to install their self-driving technologies to cars operated by rental companies.

On the other hand, Tesla “wants to control the autonomous driving user experience from start to finish. Its Autopilot systems go into Tesla cars, which in turn run on Tesla software, are sold at Tesla retail stores, and are serviced at Tesla service centres”[3]. The approach adopted by Tesla, in contrast to Alphabet and Apple serves to strengthen its ecosystem, if efficiently realized in practice.

Tesla Inc. Report contains the above analysis of Tesla ecosystem. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Tesla. Moreover, the report contains analyses of Tesla leadership, business strategy, organizational structure and organizational culture. The report also comprises discussions of Tesla marketing strategy and addresses issues of corporate social responsibility.

Tesla Inc. Report 2021

[1] Elmerraji, J. (2018) “Tesla Is Taking Apple’s Ecosystem Model Up a Notch” The Street, Available at: https://www.thestreet.com/investing/tesla-taking-apple-ecosystem-model-up-a-notch-14564192

[2] Evannex (2018) “Tesla “ecosystem” of product and services are redefining the auto business” Teslarati, Available at: https://www.teslarati.com/tesla-ecosystem-product-services-redefining-auto-business/

[3] Jhonsa, E. (2017) “Google and Apple’s Self-Driving Alliances Show How Different Their Strategies Are From Tesla’s” The Street, Available at: https://realmoney.thestreet.com/articles/06/26/2017/google-and-apples-self-driving-alliances-show-how-different-their-strategies-are-teslas

Category: Strategy