BCG Matrix for Tesla

The Boston consulting growth share matrix reveals an undiversified portfolio

for Teslas business unit as question mark moving to stars. This is indicative
of their high growth rate and profits yet very low but growing market share
and negative cash flow. This also accounts the current lack of infrastructure
in terms of charging stations, factories, dealerships and supply limitations.
Future performance will reveal growth potential and promising growth on the
upper quadrant of the BCG Matrix.

Product Life Cycle Stage of Tesla

Currently, the industry is on the innovation curve i.e. in the techies stage and
making way for the visionary stage. So if we see, Tesla is currently tapping
the early markets of innovators and early adopters. The company in order to
reach the favorable quadrant of the BCG matrix has to tap the mainstream
markets covering early majority and late majority.
Posing the final question: Is Tesla Really Green?
Even though Tesla lies in the grey zone of being clean using batteries having
one of the components as lithium, which is a rare element which requires
intensive mining and the battery has to be charged using electricity grid
which runs on coal creating pollution indirectly, it is one of the most
environment friendly option currently available. The talks of Tesla not being
green can also be negated by the fact that Tesla 3 model is a one step closer
in building a sustainable ecosystem. If Tesla succeeds in making people shift
towards the electric cars, they are going to innovate on the technology
aspect of it also owing to the technological prowess of Musk. An example of
this can be seen in the development of Powerwall, which is a home battery
charging system using electricity generated from roof top solar panels .So
Tesla isnt perfect right now but it is still pushing our society and economy in
the sustainable direction.
Going forward

Importance of creating an ecosystem

With Tesla, Elon Musk is trying to build an ecosystem to deliver an integrated
user experience. An example of this would be retail spaces, home-batteries,
recharge stations etc. This creates a broader perspective for Tesla and can be
entitled as purpose. And this purpose is the foremost reason that drives
Tesla successfully into the future.

The key advantage of the ecosystem model is that improvement in any one
of aspect of the ecosystem will completely influence and improve the
performance of dependent systems. Tesla is in the process of building this
ecosystem and once they are capable of achieving it, they will be completely
green.

Benefits
people care
about

Degree of
differentiation

Evokes positive
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