BCG Matrix Tesla Analysis in 2023

Debjani Kundu
Debjani Kundu  - Content writer trainee in CIA
9 Min Read

Boston Consulting Growth (BCG Matrix Analysis) is a key point that has been used to analyse Tesla’s business product portfolio. Tesla, the electric vehicle company has created a buzz in the world. The emission of CO2 is increasing day by day. The fossil fuel transports are responsible for the relentless pollution. 55% of all pollution is the result of the extreme use of fossil fuels. To control disruptive pollution, the EV company has decided to increase the use of biofuels in passenger vehicles. Tesla is the most popular EV until now for its innovative marketing strategy and the popular face of CEO Elon Mask.

Tesla is an American production company that was founded in 2003 with the mission of accelerating subsidiary energy. It’s high time to use electronic vehicles for decarbonization.

Reasons for BCG Matrix Analysis:

Tesla EVs are a booming industry in America. The emerging population and immense pollution are increasing panic among people about the fact that an immediate solution is necessary to maintain the ecosystem. In the meantime, Tesla EVs can only combat the disruptive situation with the production of biofuel and nitrogen-operated vehicles.

The Porter Five Forces, Pestel Analysis, SWAT Analysis, and BCG Matrix are the essential structures that indicate the growth and development of a leading and non-leading company and are necessary to calculate the market opportunity for the founder and management.

What is BCG Matrix Analysis:

BCG Matrix is the most potential business framework to analyze the market, consisting of four quadrants and two axes: vertical, horizontal, and vertical. Let’s face the questions arising in the reader’s mind:

  1. Is BCG Matrix considered a supermodel for any company?
  2. Is it the ultimate prophecy for the growth of a company?
  3. Will it help the market orientation?

The analysis will help the management make an ultimate decision regarding the product’s market opportunity. The product can be kept or discarded at the discretion of management.

Position of Tesla In BCG Matrix:

Continuous innovation and modification in  Tesla’s several models is the reason for consumer attraction.

We are building the world powered by solar energy, running into the batteries, and transferring in electric vehicles.”-by ELON MUSK

The promotional statement of Tesla is a real one, as it has secured the Quadrant I position in the BCG matrix chart. The highest share in the automotive industry implies a dominant factor in the growth of the company.

Analysis of the products:

The matrix is the key factor in analyzing product sustainability according to popularity and return. Let’s have a look at products securing the best to worst position.

  1. The Star Product: The star product of a company denotes the high investment in the share market with high revenue. Tesla the EV company, is booming with star products like the Model Sedan, SVU X, and SVU Y cars. Tesla EVs are creating buzz for the availability of charging at the owner’s residence. The solar panels and solar walls can also be considered a star product. The company should invest more in these products to generate lucrative revenue.
  2. Cash Cow: The cash cow product of a company denotes a high investment in the share market with low revenue in future. The company collects spare parts from their manufacturers, it synchronises the availability of the parts in the local market. Shortage of retail charging places, non-availability of spare parts and solar walls training the productivity and growth of the company.  The Powerwall of Tesla Inc. can be considered a cash cow product.
  • MODEL Y: generated 19.2 billion in revenue in 2022, that is 57% of Tesla’s total revenue.
  • MODEL 3: Generated 7.2 billion revenue in previous fiscal year, that is 21% of Tesla’s total revenue.
  • 3.The Question Mark: The Question Mark products denote low investment in the share market with excellent high revenue in future. The management team decided to invest more in question-mark products to boost the company’s growth. The Cybertruck, Roadstar, and……. may be considered question-mark products.
  • 4.The Dog Product: The Dog or Pet products denote low investment in the share market with low revenue. Battery storage products like Roofwalls and solar panels may be considered dog products.

Is BCG Matrix considered a supermodel for any company? Accessing the value of a product in trending markets with it’s evolutionary performance is a common and crucial component to maintain a company’s sustainability and success. BCG Matrix is widely embraced business approach to access the value of a product. The analysis may be benevolent and beneficial to access the value of a product. The prediction of matrix is quite accurate and the management of any specific company consider it a supermodel in business.

Market In India: India has been considered the most polluted country in 2019, the modern, fast-paced lifestyle and the environment must be balanced to save the world.  Automotive vehicles are the only savagery of pollution. Each local automotive industry like TATA and Maruti Suzuki, is the sole competitor of Tesla. The local industry can provide automotive vehicles at affordable prices.

Elon Musk has given a proposal to the Indian government to reduce 15% taxes on import duty and to invest 2 billion dollars to implant the Tesla branch in India. The reduction may create an efficient impact on the Indian economy and maintain healthy competition between local production and international production.

Relationship with local suppliers: Relationship with Tesla and local implants is an important factor in evaluating a bolstered EV industry. Biofuel lithium is a pivotal factor in charging electric vehicles, and the company is in search of a gigafactory in India. Panasonic and Tesla have tied up with each other to provide ev batteries worldwide.

Cons of using Tesla products: Tesla products are quite popular in the United States for their innovative technology and eye-grabbing look. The cons of the products cannot be ignorant for the users.

  • Low promotion and placement investment: Tesla never hires any effective CRM team. The entire promotional campaign is an ex-customer’s genuine recommendation posted on a social media page.
  • Deficiency of the Charging Station: Charging station for Tesla EVs are not available in each location. In winter season, customers face a lot of hardles. A few charging stations are not working regularly, and a few locations are too far to reach.
  • Low Market Share: Tesla has witnessed a slump in business. it has lost more than $200 million in the past month.
  • Stiff Competition with China EV Company BYD: China EV implant is expanding widely and gaining popularity. Its innovative designs and features are the dominant factor for the widespread popularity. The sluggish sales is responsible for the plunged business.
  • Unreliable product prior to release: Tesla recently has recalled more than 2 billion Y model cars in United states. Management has confirmed that the recall is only for technical renovation. The driving


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By Debjani Kundu Content writer trainee in CIA
Birthday:24/05/1997 Working as a content writer trainee in CIA Trying to write down the thoughts regarding various factors including business,social and economy purpose.