Contemporary Issue: New Competition in the Marketplace 
(The Case of Tesla)

Keyuan Hou

doi:10.70711/memf.v2i8.7438

Contemporary Issue: New Competition in the Marketplace (The Case of Tesla)

Keyuan Hou

Abstract

This paper examines the challenge of intensifying market competition facing Tesla amid globalisation and the rapid expansion of the
electric vehicle (EV) sector. Despite rising global revenues, Tesla’s market share is declining due to new entrants offering comparable technologies at lower prices. In response, Tesla has pursued globalisation through factory expansion, invested in technological innovation to enhance
brand value, cut prices in key markets, and leveraged CEO Elon Musk’s public image. While these strategies have yielded mixed outcomes,
challenges remain, including logistical inefficiencies, reputational risks from price cuts in the luxury segment, and overreliance on Musk for
brand visibility. To sustain competitiveness, Tesla must diversify its marketing approach, emphasise CSR-driven branding, and address operational bottlenecks in Europe.

Keywords

Tesla; Globalisation; Market Competition; Innovation Strategy; Industrial Transformation; China EV Market

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References

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DOI: http://dx.doi.org/10.70711/memf.v2i8.7438

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