Analysis of the Core Competitive Advantage of the Auto Industry: A Case of Tesla’ s Business Model

Abstract

Due to environmental pressure, energy security, technological development, consumer attitudes, and policy advocacy, it is widely recognized by governments and automotive enterprises that energy efficiency and green emissions are significant directions for the future of the automotive industry. The development and popularity of new energy vehicles (NEVs) have been a trend with broad prospects. Currently, Tesla is undoubtedly the leading electric vehicle company in terms of brand awareness, market share, and new technological breakthroughs, and is highly competitive in the NEV market. This paper explores how new technologies, management, corporate culture, and brand image have helped Tesla to expand economies of scale, reduce costs and increase turnover. By using the method of case analysis, the paper analyses and evaluates the core competitive advantages of the automotive industry through Tesla's business model. In addition, the paper proposes solutions for Tesla's current establishment background, current situation, and operating environment as well as its shortcomings. And then makes some suggestions for future development. According to the analysis in this paper, the typical disadvantages of Tesla are high cost, high selling price, and limited consumer base. At the same time, this paper summarizes the above key elements and analysis and then looks at the future development of the electric vehicle industry. Through the discussion in this paper, some successful experiences and advanced ideas that can be learned from new energy vehicle companies are found. These experiences and ideas allow the future of the world's new energy vehicle market to unfold in its way.