External Analysis

PESTEL Analysis

In order to distinguish and break down the fundamental elements of the company’s external environment it is suggested to use PESTEL analysis (Academy, 2015). Figure below illustrates all crucial external factors, which need to be considered while doing external analysis. PESTEL stands for:

Taken from: http://www.professionalacademy.com/blogs-and-advice/marketing-theories---pestel-analysis

In the following paragraphs, each factor is going to be analyzed separately.
Political
By selling autos in many countries of North America, Asia andWestern Europe (Tesla, 2014), the companyneeds to manage any political issues affecting its business operations. For example,one of the main political aspects influencing on the industry is ecological assurance lawsto stimulate the production of more environmentally friendly vehicles to meet the emanation levels(Environmental-protection.org.uk, 2014). The next essential aspect is US government vitality advance projects for innovative work of new vehicle advances (Department of Energy, 2014). For this situation, numerous automobile producerswill be occupied with entering the new business sector in automobile industry.
Economical
Nowadays, US market is most attractive for Tesla Motors, because of the economic growth and level of GDP (Tradingeconomics.com, 2015). Figure 1 below illustrates the growth rate of US GDP from 2013 to 2015.
Figure 1. US GDP growth rate (%). (Trading Economics, 2015)

In addition, financial elements incorporate monetary development in the option vitality commercial ventures and increment in the expense of utilizing the autos for the most part because of the ascent in technical service costs in the brief period. Accordingly, the interest for more-proficient autos is higher than it used to be(BBC News, 2014).
The market shares of electric cars in US are gradually increasing