Political
Tesla has been impacted both negatively and positively by political factors. The fact that the
government has taken several positions in favour of the development of hybrid and electric cars
has had a positive influence on Tesla's business environment. Tesla has capitalised on this
opportunity to enhance their financial performance by taking advantage of various government
incentives that motivate and encourage many consumers to purchase an electric vehicle rather
than a diesel or gasoline vehicle, such as the UK government's new rules stating that "by 2050,
all petrol/gasoline cars will be electric." New gasoline and diesel automobiles will be phased out
by 2030, with electric vehicles following in 2035. Second hand gasoline and diesel vehicles will
continue to be accessible. However, with no new models permitted to be sold in the UK, they
will eventually all be replaced by electric cars, benefitting Tesla sales revenue as there is
anticipated to be even higher demand for electric vehicles owing to customer behaviour
changes from transitioning from gasoline to electric vehicles and government push towards
electric cars. Moreover, beginning today, the UK government will provide grants of up to £1,500
for electric cars priced under £32,000, with approximately 20 models already on the market,
ensuring that taxpayers' money is put to the best use and that as many people/and consumers
as possible benefit, as well as enticing consumers to buy an electric car instead of a gasoline
vehicle when consumers are in their buying decision phase , as consumers would likely
purchase a car with grants higher than a gasoline vehicle.
However, I believe that political factors have also had a negative impact on Tesla, as the
government imposed new rules and regulations on employment as a result of COVID-19, as we
know Covid has had a large impact on the world, being one of the most viral viruses to ever
occur in mankind history, resulting in 5.6 million deaths and more to come. As a result of Covid,
the government imposed policies on Tesla's workplace, such as if employee gets Covid as a
positive test result, they must isolate themselves until they get tested negative for Covid, giving
full proof of the test being negative to Tesla, so to reduce the spread of Covid among
employees, to ensure health and safety rules are followed. However due to the current rules
placed because of Covid which has affected Tesla employees, to be inactive at workplace. This
has ultimately, undoubtedly had a negative influence on Tesla's workflow and efficiency in
manufacturing electric vehicles, since there are fewer employees than usual executing various
tasks and operations within Tesla’s business.
Economic
Economic is another factor that could positively affect as well as negatively impact Tesla
business environment. High unemployment is one of the most impactful economic factors that
has impacted Tesla, since it decreases the effective demand for Tesla products, lowering the
