Analysis: focus on External and/or Internal Environments 1. Conduct a PESTEL analysis to identify the forces affecting car manufacturing of alternate energy vehicles. 2. Conduct a SWOT analysis to...

1. PESTEL stands for political, economic, social, legal, technological, and environmental factors analysis (Song, Sun and Jin, 2017).
Political factors identify the impact of a government on businesses and the associated macro-environment. As the traditional vehicles have a dominant position in the market, politics can help Tesla gain an advantage in the current market. Subsidies and incentives from the government have reduced the vehicle costs and make it more attractive to customers. It will also help Tesla to expand into international trade.
Economic factors play a huge role for the company. There is reluctance in people over buying the electric cars as compared to the cheaper, traditional vehicles. However, the low cost of batteries and the decreasing costs of renewable energy makes the company more attractive.
Social factors: The idea of Tesla is to promote the use of alternative energy sources for use as fuel. People worldwide are becoming increasingly aware about environmental pollution and adopting cleaner sources of energy, which is advantageous for Tesla.
Technology factors: Ne technologies that can reduce the cost of alternative energy dependent vehicles can prove advantageous for the company. However, new technologies from competitors can also prove to be a threat.
Environmental factors: Increasing concern about environmental pollution is forcing government across the globe to enact strict laws and implement such laws aggressively, which is a positive signal for companies such as Tesla.
Legal factors: Laws and regulations in favour of clean energy provide opportunities as well as threats to the company as it means requirement of more permissions and...