Stakeholder Analysis of Tesla

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The stakeholders for every business are essential parties that have a significant contribution to the success of the business. Each of the stakeholders has specific interests to the organization that must be considered when developing an effective strategy in the company. This paper focuses on the operation of Tesla, one of the dealers in the automotive and energy business, analyzing its stakeholders and making strategic recommendations for each of the selected stakeholders. Some of the stakeholder generic groups identified include the ecosystem, the industry level, the potential, and the internal stakeholder group. Within the generic categories, the specific stakeholders selected include the customers, employees, government and the investors. The recommendations for the customers is a design of the low priced but high-quality products, while for the employees is to provide a strategic program whereby the workers get their compensations based on the performance. On the other hand, it is recommended that the business adopt a production method that promotes compliance with the set standards, while technological innovation is recommended for the investor needs.

Table of Contents

Introduction. 4

Tesla Stakeholder View of the organization. 5

Specific Stakeholders. 8

Government………………... 8

Customers……………………... 8

Employees………….. 9

Investors……………………... 10

Generic Strategic Programs. 10

Recommendations. 12

References. 14

Stakeholder Analysis and Strategy Development for Tesla Motors


Tesla Motors is one of the largest automotive and energy companies with an American origin (Greenspan, 2017). The organization has its headquarters located in Palo Alto California and running many branches across the globe performing production and assembly works. The business operates two main sections that include the automotive and the energy sectors. The main activities within Tesla's automotive department include the designing, developing, the manufacture and sales of electric vehicles. On the other hand, the energy segment designs, manufactures, installs and sells the energy storage devices and the solar panels. The company serves customers as individuals or groups coming from different parts of the world (TESLA MOTORS INC., 2012). Tesla’s key competitors in the sector include the Audi, Lexus, Toyota, Samsung, LG, Ford and Mercedes among many others (Greenspan, 2017).

Currently, Tesla operates on a mission of accelerating the global transition to sustainable energy. Initially, the business had a mission of accelerating the transition of the world towards achieving a sustainable transport solution. Therefore, the key focus of the organization is upon the acceleration of the change, leading the world’s transition and emphasizing on sustainable energy. On the other hand, Tesla operates with a vision of becoming the most compelling car business of the 21st Century through the leading the process of transiting the globe in adopting the electric vehicles. Its mission and vision propel the design and manufacture of the vehicles, energy storage devices, panels and the general operation of Tesla.

Some of the recent developments in Tesla include releases of the autonomous vehicles that have significantly disrupted the automobile sector. The organization has set the key trends in the sector, making other players to change rapidly embrace the technology. Besides, the disruptive innovations from the powerful electric storage devices and sensitive panels have set the trends the world, with competitors working towards achieving the technology (Cooper, 2017). Recently, Tesla has faced financial challenges especially in the making of cars at a scale. The monetary struggle has led the company to the reduction in profitability.

Tesla Stakeholder View of the organization

Tesla had various stakeholders within its operation who are important for its running. An effective analysis of the stakeholder groups can be based upon the PEST (political, the economic, the social and technological) aspects within the company. Usually, the PEST factors focus on establishing the key situational considerations within the operation of the business. The consideration of these factors provides four main groups of stakeholders within the operation of Tesla. They include the general ecosystem, the industry level stakeholders, the internal parties and the potential new stakeholders (as shown in figure 1.0 below). Each of the categories is important for the smooth running of the business, and hence, Tesla considers and recognizes them for its organizational wellbeing (Andriof et al., 2012). The design of any effective strategy to the business will always have these factors as the central basis. Therefore, an understanding of the type of the stakeholders is important for effective running of the company.

Figure 1.0: Stakeholder View Model for Tesla Company

Firstly, the general ecosystem stakeholders cover all the parties that lie behind the PEST forces. They include the political and the legal factors within the nation or the general environment that the company runs. The group covers the national and regional regulations onto which the business must conform upon during its operation. Tesla is compelled to conform to these factors for its better running (Bourne, 2016). Other groups within the ecosystem include the press that mainly wants to find information regarding the operations in the business. The group also covers the communities or the people who live at new places and public where the business operations take place. Tesla is forced to abide by the requirements of the communities and the interest of the public because working against it puts the company at the risk of opposition that affects business negatively.

Secondly, there is the industry level stakeholders group. The category consists of the parties who have both direct and indirect impact on the operation of the business. The group covers the direct competitors especially at the level who create a force in the market of the business. Besides, the category covers the companies that provide the competition outside the market of the business and those the new players that might arise and provide competition in the industry (Morden, 2016). In the group, the existing and potential lenders to the business are considered along with the existing alliance business or potential companies for partnership. There are also the potential trade associations that work with the business. The suppliers of the business also belong to the industry level category of the business. They are the parties who are included within the whole supply chain of the company, making the company operations successful. Additionally, within the industry level stakeholder group, there are the customers to the business. They include the end-users, those possessing the potential of becoming the clients to the business and the general potential end users to Tesla’s products.

Thirdly, there is the internal stakeholder's group, consisting of the parties within the internal business and affecting the entire productivity and the general wellbeing of the business. Some of the key parties in the group include the board of directors, who are the key decision makers to the business. There is also the senior management team that consists of the leadership team overseas other employees and helps in the control of the operations of the business. Additionally, within the group, there are the employees that consist of the skilled workers, the semi-skilled and other workforce groups. At Tesla, the workers fall under the category of permanent and those on contract, and the potential new recruits to the business. Therefore, the internal stakeholder group is important in ensuring that the company succeeds in its operation.

Lastly, there are the potential new stakeholders to the company, consisting of the parties that have the capabilities of helping the business to grow. The parties work with Tesla to embrace the new strategic plans for the company. Some of these parties are only contracted during the execution of certain strategic plans in the company. Besides, the type of strategy embraced influences the choice of new stakeholders. The fact is true because different strategies demand for specific parties for support. Therefore, the group is responsible for planning and carrying the visions for the growth of the business.

Specific Stakeholders


The government is one of the major stakeholders in Tesla that has an influence on the general operation of the business. The control of the government has different impacts on the company such as the provision of the standards and requirements that must be met in the business. In some cases, the governmental activities create the opportunities for the business through its control, while in other cases, it creates limitations that control the activities that the company do in the market. The key interests of the government as a stakeholder in the business is the compliance, whereby the party seeks to ensure that operations align or complies with the existing laws and regulations set. The government also has an interest in the company’s contribution to the economic growth of the nation of the nation or the region.


Customers refer to Tesla's clients who consume the products of the company. The party has a direct influence on the revenues collected by Tesla because they are the main consumers. Considering the influence that the customers have over Tesla’s operation, they need a special attention to their interests to ensure that they are met for effectiveness. Understanding what they need helps to retain the existing clients and attract new buyers, hence, improving the wellbeing of the business (Hojnik and Ruzzier, 2016). Attracting and maintaining a customer base helps the company to improve in its sustainability, profitability, hence, achieving growth in the industry. Therefore, Tesla works to achieve these goals for a better outcome.

Customers are interested in getting the high quality in the product offering of Tesla. Usually, the customers in the market seek to find the best products, by comparing the offering from other competitors in the market. Therefore, Tesla has the role of offering the best quality products to meet the interests of the customers (Greenspan, 2017). Besides, the customers have an interest in product pricing. They want to have the products at a low and affordable price. Failure to consider pricing makes the stakeholders switch to another available seller in the market. Thus, there is a need for Tesla to adopt the best strategies that ensure that the costs are reduced and the client finds the product at a reasonable price.


The employees have a significant influence on the operation of Tesla, hence, forming an important party for the running of the business. Therefore, the company must understand their interests and work within the desired expectations. They are the key definers of the corporate capabilities with the Tesla’s operation. The interests of the employees are mainly in the compensations that they receive. The workers need a competitive salary and rewards, especially in comparison to what is offered by other organizations within the market. Besides, the employees are interested in the career opportunities and growth available in the business. The workers seek to be in work environments that have concrete working and career development plans (Davis, 2016). Therefore, a focus on the interests of the employees will attract the best talent in the market, and achieve their engagement and commitment for better results in the market.


The investors form a critical category of the stakeholders that determines the capital and the general business value of the business. The investors influence both the existing operations, the future activities of the business within the strategic plan. Therefore, they possess strong capabilities of influencing the running of the company, hence, worthy considering their interests. The existing and potential investors to Tesla are mainly interested in the profit (Greenspan, 2017). They seek to see that the business has achieved more sales, incurred low and made the highest profit possible. Besides, the investors find interest in the continued growth of Tesla. Therefore, Tesla is forced to ensure that it achieves profit within its operations and attains growth. Failure to achieve these aspects makes the interests to shy away or withdraw from working with the business.

Generic Strategic Programs

The government as a stakeholder belongs to the generic group of the ecosystem stakeholders of the company. Some of the strategic programs available for managing the party include the frameworks to comply with the governmental requirements within the company. All the operational strategies and tactics that the Tesla embraces must meet the needs of the ecosystem stakeholders (Greenspan, 2017). For example, the calls the stakeholder to conserve the environment has made the business to embrace operational strategies comply with the requirement. Again, as another program, the supply chain for Tesla complies with the governmental requirements, hence, helping it to meet the standards set by this group.

The customers belong to the generic group of the industry level stakeholders. Tesla recognizes the group as one of the important drivers for its wellbeing. The company has designed various strategic programs that help to meet the needs and interests of the group. These programs include the cost-cutting approaches that help to ensure that the customer finds the products at a fair price. The clients are interested in getting the products a fair price (Plouffe et al., 2016). Besides, Tesla has programs to adopt the latest technology into its operations to deliver quality products to the customers. As a disruptor, the company has creativity and innovation that helps it satisfy its customers as much as possible. Again, the company offers a variety of vehicle and solar products that come in packages depending on the quality and price, hence, a suitable strategy to handle the customer interests. Therefore, Tesla considers its customers and delivers strategic programs to meet their specific interests.

Regarding the employees, they belong to the internal stakeholder generic group. The workers deliver the key services for the operational process of the company. The company has adopted a competitive compensation strategy as a way to satisfy the worker’s interests (Gereffi and Fernandez-Stark, 2016). The approach has attracted new employees with the best talent and contributed to their retaining. Besides, as a strategy, their interests have been handled through the promotion of a positive organizational culture within the workplace. Through the approach, their morale has been boosted, hence, creating a suitable workplace for their growth. Additionally, the human resource section of Tesla has set the programs to develop the skills and leadership, hence, helping to meet the interest of the employees as key stakeholders in the business.

Lastly, the investors belong to the potential stakeholders. The party is interested in the growth and profitability of the organization. One of the key approaches that Tesla has used to meet the interest of the workers is through the business expansion. The organization works to reach new market areas, explore the new opportunities and increase its profitability, hence, achieving growth (Tantalo and Priem, 2016). Again, Tesla has long-term strategies that help it to address the needs and interests of the investors. Additionally, the business has programs to maintain its sustainability and the conservation of the environment. The strategy aids the business to become a candidate for the business expansion and increased profitability, hence, meeting the interests of the investors.


As a recommendation of the strategic plan to meet the requirements of the ecosystem stakeholders group (like the government), the business needs to embrace a manufacturing and general operation strategy that incorporates the set standards. The recommendation is justified by the fact that approach will help eliminate the variations, and deviations from the expected aspects for compliance such as the environmental pollution standards among many others (Grant, 2016). The program will create a culture among the stakeholders, whereby they comply with the existing requirements. Regarding the customers, it is recommended to adopt a program that will help the business to reduce the product pricing as much as possible. In the entire production process, the cost saving should be the key consideration because it leads to fair priced products. The approach will attract many customers and retain the existing ones because; the operation will meet their interests in the organization.

The recommended strategic program for the employees is the adoption of the remuneration based on performance. In the program, the workers who perform better will receive a better pay, hence, the more the effort the more the earning. The strategy is justified by the fact that more employees will find interest to work with the company due to fair remunerations. Therefore, the strategy will attract people with skills, and retain the best talent for effectiveness (Chavez et al., 2016). Lastly, on the investors, it is recommended that Tesla should adopt the best creativity and innovation that will boost its growth. The business should seek more opportunities for its growth in technology. Innovation has the capabilities of providing unlimited opportunities to the operation of the company. The process will help the company to meet the interests of the investors in the operations.


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January 19, 2024




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