Analyze Tesla’s external environment (identify both favorable and unfavorable factors).

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Tesla Inc. is an American electric vehicle and clean energy company based in Palo Alto, California. As a leader in the automotive industry, Tesla is exposed to a variety of external factors that can affect their operations and performance.

The most favorable factor for Tesla is the trend towards green living, sustainable products, and renewable energy sources such as electric cars. This attitude from consumers creates greater demand for Tesla’s vehicles which increases sales volume and profits. Furthermore, governments around the world are increasingly introducing incentives and subsidies to encourage individuals to purchase electric vehicles which improves affordability and contributes positively to Tesla’s bottom line.

On the other hand, some unfavorable factors threaten Tesla’s current position on the market. One such factor is the competition from more established players with more resources available at their disposal, like General Motors or Ford Motor Company who have major advantages such production capabilities that allow them to produce cars at much lower costs than Tesla can manage at this point in time; this puts pressure on sales prices which affects overall margins making it difficult for them to remain profitable without cutting corners or sacrificing quality control standards in place for safety reasons. Additionally, there are threats posed by new entrants into the market who could potentially disrupt pricing models or supply chains making it difficult for companies like Tesla to keep up with changing conditions unless they invest heavily into research & development or adopt agile strategies quickly enough so they don’t get left behind again like what happened during 2017 when multiple competitors launched EVs before them affecting their lead position within the industry significantly leading many investors losing confidence on future prospects despite positive long-term projections were made at that time; this could happen again if any of these newcomers prove successful enough before they’re able too launch their own EV lineup so great care must be taken when assessing new market entrants accordingly as part of ongoing monitoring efforts regularly carried out by executive management teams within various industries everywhere today due its relevance these days especially under current economic conditions worldwide where volatility can create significant challenges even giants like Apple experienced recently unexpectedly proving size isn’t always indicative success nor immunity against potential pitfalls presented every now then facing everyone alike regardless how well prepared one might think they are prior any given crisis arise without warning making necessary plan ahead beforehand being better safe than sorry ultimately.