Sample Paper on Stakeholders Analysis of Tesla Motors and the Global Automobile Industry

Tesla Motors is a Californian- based automotive company aiming to develop electric-drive vehicles as its new venture. The project is delicate such that Elon Musk, Tesla’s CEO and production manager, needs to harmonize the interests of different stakeholders to achieve the goal. Therefore, a stakeholder analysis is necessary to help Tesla Motors to identify key stakeholders and prioritize their interests in achieving its goal of manufacturing electric-driven vehicles.

The stakeholder’s analysis classifies stakeholders into four main groups based on their ability to influence the project. In Tesla’s case, priority is given to stakeholders with both high influence and interest in the project. The group comprises the local community, investors, and customers since they are the key players in ensuring Tesla’s goal is successfully realized. Since the manufacturing of electric-driven automobiles will require massive capital investments, the priority of stakeholders is given to investors to inject the capital needed to offset the project. In addition, the attitude adopted by Tesla’s customers towards the product will affect the project sales. For example, Tesla’s customers had a positive attitude towards the remodeled Roadster launched in 2008. Despite the high price of $109,000; sales surpassed production such that an additional 1,200 customers had paid deposits to reserve the vehicle at the end of 2009 (Rothaermel & Zimmer, n.d). Hence the company ranks its customer’s ad investors as the key contenders in the production of electric-driven automobiles.

The second category consists of stakeholders with high power to influence project outcomes, but low interest in the project such as government authorities. Tesla Motors needs to adhere to the regulations set by governmental authorities to operate within the set business permits. Some of the set regulations include a mandatory tax obligation to both the state and federal governments. Tesla Motors must meet its tax obligations and legal regulations since business responsibilities are stipulated in the P.E.S.T.E.L (political, economical, social, technological, environmental, and legal) framework. Moreover, the local authorities are focused on environmental conservation such that the production of electric-driven vehicles will help achieve the goal through reduced carbon emissions in automobiles. By producing electric-driven cars, Tesla will be able to meet its environmental obligation set by the local authorities in Fremont district, California. On the other hand, the legal regulations emphasize Tesla’s contribution to economic growth through sharing of information, especially its production techniques (Greenspan, 2018). In doing so, Tesla is able to effectively run its operations as per the set business permits.

The third category mainly comprises stakeholders who must be monitored as the project progresses since such stakeholders have high interest in the project but the low influence on project outcomes; for instance, Tesla’s employees. Employees from different departments are classified in the third rank because they are subjects in the execution of the project. They are engaged in the manufacturing of different spare parts and assembling of Tesla’s automobiles. Therefore, the employees are constantly informed of the project’s progress, as well as changes to be implemented in case of deviations because they are the main executors of the project’s production. Moreover, Tesla’s management must monitor its employees during production to minimize production errors. However, the employees do not have the power to influence the type of project to be initiated by Tesla Motors.

The final category of stakeholders comprises those with both low interest in the project and low power to influence production and sales outcomes. The major contenders in the group include outsourced consultants and the media. A majority of stakeholders in the category are occasionally informed of the general progression of the project. The stakeholders in this category are important in giving insights, critically assessing the progress against the set goals, as well as publicizing the project. Critical information such as Tesla’s production techniques is not accessible to stakeholders in this group as such access may result in leaking of confidential information or negative publicity.



Greenspan, R. (2018). Tesla, Inc.’s corporate social responsibility & citizenship, stakeholders. Panmore Institute. Retrieved from

Rothaermel, F.T., & Zimmer, E. (n.d). Tesla Motors (in 2013): Will sparks fly in the automobile industry? McGraw Hill Education. (The article was provided by the client).