For a disruptive, young company like Tesla Motors , it's especially important for investors to take a close look at not only strengths and opportunities, but also weaknesses and threats. That's why Fool contributor Daniel Sparks and industrials bureau chief Blake Bos took a close look at Tesla stock by using a SWOT analysis in the video below. In this particular segment of the video, Daniel and Blake look at Tesla's biggest threat: public perception.

Marketed as a zero-emission vehicle, the company's brand benefits from the perception that the Model S is green. As Daniel explains, any damage to this perception, or any significantly greener alternative, could pose a problem for the company. The reactions to three battery fires that resulted from high-speed collisions toward the end of 2013 illustrate just how important brand perception is to the automaker.

Check out the video below to learn more about Tesla's greatest threat.


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The article What Is Tesla's Greatest Threat? originally appeared on Fool.com.

Blake Bos has no position in any stocks mentioned. Daniel Sparks owns shares of Tesla Motors. The Motley Fool recommends Tesla Motors. The Motley Fool owns shares of Tesla Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


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jim5437532

Tesla is its own biggest threat. By not taking safety seriously, Tesla is putting itself in a position of high liability.

The Tesla model X. is the ugliest car I've ever seen. They are the first manufacture that I know of that has made the gullwing uncool. I doubt those doors will do will in snow, ice and garages with low clearance.

Tesla is one of the first auto manufacturers to have their production car's computer connected to the Internet, which opens up customer vehicles to many security risks. Tesla recently hired a hacker, probably to try to combat the security threat.

Tesla had a bad start in Norway. Tesla was not proactive in properly testing Tesla Chargers to make compatible with Norway's power grid. Resulting with many disgruntled Norwegian Tesla customers that could not charge their cars. Despite complaining for several weeks to Tesla customer support and service the problems, the issues were not resolved. So customers went to the media. Tesla management claimed they didn't know there was a problem until they saw it in the headlines. So there are also serious communication problems at Tesla. Despite customers complaining for many months in the US about Tesla charger connections overheating, melting and burning the problems have not been resolved. Tesla did not declare a recall until the Tesla fire hazards were reported to the media and government agencies. Allegedly even though a recall vote you out on on on on the weight on and ignore it would be very very that he already. Despite Tesla promising to address the Tesla charger connection fire hazards in a timely manner, Tesla has been slow. Tesla is still in denial about the Tesla charger fire hazards. Tesla is playing blame games trying to pin the rap on house wiring and wall outlets. There is no doubt that in some cases there are and will be bad house wiring and wall outlets; but that should not be used as a scapegoat. Tesla is putting itself in a position of huge liability that could destroy the company. Tesla is putting customers at risk gambling with safety.


The Tesla model S. still has defects that make it a fire hazard. Tesla charger connections are still overheating, melting and burning. Tesla batteries are poorly located and poorly protected. Tesla is Junk.

On 1/9/2014 Elon Musk said that replacement adapters that are part of the recall would be mailed out within two weeks. A month later Tesla customers have still not received the replacement adapters that are part of the Tesla model S. recall.

Several people have been injured by faulty Tesla charge connectors. Tesla is big on making promises and hype, but short on delivery. Tesla needs to start making safety a top priority. Tesla needs to stop playing blame games and games with semantics. Tesla needs to stop lying. Tesla needs to be proactive instead of reactive. Tesla is being a follower of technology, rather than a leader. Tesla is a greedy corporation that has a disregard for safety. The Tesla model S. is an E-Pinto.

February 11 2014 at 10:52 AM Report abuse rate up rate down Reply
1 reply to jim5437532's comment
Albertico Perez

I think you are kind of nitpicking on every little hiccup the company has. Tell me what company doesn't have issues that they don't solve right away, even though they say they will? All of them.

As for the safety factor, it is still the safest car ever tested and unless you are an expert I see no reason why your view on this particular matter should be taken seriously. Just because 3 fires have happened at high speed collisions and some charging adapters have overheated doesn't mean the company is unsafe with their products. 3 fires out of 30,000 vehicles on the road in over a year is a pretty good statistic; even more so because no one got seriously hurt in these incidents. The charging adapters overheating have already been pinpointed to originating from inadequate wiring that cannot support the huge electricity current pull from the Model S. This primary issue is not a Tesla product issue.

NHTSA is going to come out with their report on the Model S shortly, that is what everyone should be looking out for.

February 11 2014 at 11:14 AM Report abuse rate up rate down Reply