3.6 Legal
Many regulations emanate from green movements introducing energy loan programs and putting pressure on production eco-friendly cars such as increase taxation to incorporate the new methods of green business, the much expanded “carbon tax” and other green policies (Muller, 2013).Another major concern is franchise laws in US that protect car dealers and creates challenge to Tesla selling its car directly to customers (Fisher, 2014). Other factors that might affect the manufacturing of battery car include the tax incentives and subsidies to increase the demand among consumers (Ministry of Transportation, 2010).
The issues covered throughout the PESTLE analysis shapedmany opportunitiesfor Tesla Motors for further expansion and success of electrical cars within automotive market. However, together with opportunities they also creates threats, thus, the company should be concerned about rapid technology advancement and political regulations within the industry it operates.