A COMPARATIVE STUDY ON LONG-TERM FINANCIAL POSITIONS OF GENERAL MOTORS COMPANY & TESLA INCORPORATED THROUGH PESTEL ANALYSIS

Abstract

The study aims to compare through PESTEL Analysis between Tesla Inc. and General Motors. The PESTEL analysis of Tesla identifies political factors such as government policies and regulations promoting electric vehicles, economic factors like fluctuations in raw material prices, socio-cultural factors such as shifting consumer preferences towards eco-friendly vehicles, technological factors including advancements in battery technology, environmental factors such as increasing environmental awareness, and legal factors such as intellectual property protection and product safety regulations. The PESTEL analysis of General Motors identifies political factors such as government regulations on emissions and safety standards, economic factors like fluctuations in fuel prices and global economic conditions, socio-cultural factors such as changing consumer preferences for environmentally friendly vehicles, technological factors including advancements in electric and autonomous vehicles, environmental factors like sustainability initiatives, and legal factors such as labor laws and product liability regulations. Overall, conducting PESTEL analyses on Tesla Inc. and General Motors Company helps shed light on their long-term financial positions. These analyses provide crucial information for stakeholders, investors, and management to make informed decisions and formulate strategies to navigate the ever-evolving automotive industry.

Keywords:  safety standards, economic factors, technological factors, socio-cultural factors, legal factors.