Tesla: Your Gateway to a Sustainable World
1. Industry
1.1 Overview
The Electric Vehicle (EV) industry is an important and growing part of the wider automotive industry.
Electric Vehicles operate on electricity, using electric motors powered by batteries instead of the internal
combustion engines of conventional vehicles. The term EV is commonly used to refer to electric cars,
but also includes various vehicle types, ranging from passenger cars to commercial vehicles, such as
electric buses. The EV industry encompasses electric vehicles and the larger ecosystem of
organizations, people, and activities surrounding them (Allied Market Research, 2020).
1.2 Business Landscape
1.2.1 Key Players
Key players operating in the global electric vehicle market include Tesla (US), BMW (Germany), BYD
(China), Volkswagen (Germany), and Nissan (Japan). These companies have a strong global
distribution network and an extensive product range of electric vehicles. Through strategies such as
partnerships and new product launches, these industry players seek to increase market share and
profitability and drive company growth.
1.2.2 Key Regions
The electric vehicle market can be divided into the following key regions: North America (U.S., Canada,
and Mexico), Europe (Germany, France, UK, Netherlands, Norway and rest of Europe), Asia-Pacific
(China, Japan, Singapore, South Korea and rest of Asia-Pacific), and LAMEA (Latin America, Middle
East, and Africa). The Asia Pacific region has contributed to the highest revenue growth, followed by
Europe and North America (MarketsandMarkets, 2019).
Figure 1
Source: (MarketsandMarkets, 2019)
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,Figure 2
Source: (Richter, 2021)
As of 2020, China boasts the highest global EV sales and growth. Europe has also seen considerable
growth, with a significant increase in overall sales in Germany, the UK, France, and Norway (Richter,
2021).
1.2.3 Competitive Analysis - Porter’s 5 Forces
● Threat of Substitutes: LOW-MEDIUM
○ Few EV manufacturers can compete with Tesla in terms of overall performance.
○ There are still some competitors such as Polestar by Volvo.
● Threat of New Entrants: MEDIUM
○ High barriers to entry: large capital, technological knowledge, and human resource
needed.
○ High regulatory barriers to entry.
● Bargaining Power of Suppliers: MEDIUM
○ High number of suppliers in the industry
○ Tesla’s internal combustion engine drivetrain requires significantly fewer parts as
compared to a typical one.
○ Tesla relies on its suppliers for batteries, a critical component of its electric cars.
● Bargaining Power of Buyers: MEDIUM
○ Highly differentiated product
○ Targeted market
● Industry Rivalry / Competition: HIGH
○ Many other electric vehicle companies
○ Increasing demand for electric vehicles
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, 1.3 Issues
Several issues exist as obstacles to the growth of the electric vehicle industry, some of which are
discussed below.
1.3.1 Affordability
The comparatively higher cost of electric vehicles is often an obstacle to their widespread adoption.
Because electric vehicles are not mainstream, manufacturers have yet to achieve economies of scale.
Depending on make and model, some higher-end electric vehicles are worth a fortune, though in recent
years, more affordable mass market models have become increasingly available. Even so, mass market
EV models tend to cost more than conventional ones. Despite tax rebates for EV purchases and other
such government incentives, affordability remains an important consideration influencing EV purchases
(Abdullah, 2021).
1.3.2 Shorter Driving Range
Another concern surrounding EVs is their limited driving range. Conventional vehicles can usually cover
400 miles on a full tank while EVs can only travel between 60 and 100 miles on a full charge (Hearst
Autos Research, 2020).
1.3.3 Charging Time
Charging an electric vehicle can take a significantly longer time than it takes a conventional vehicle to
refuel. Currently, three types of EV chargers exist:
1. the 120-volt plug, which can take up to several nights (20-40 hours) to fully charge a battery;
2. the 240-volt charger, which can charge a battery in eight hours or less; and
3. the direct current (DC) fast chargers which can charge an EV to 80% full in half an hour.
DC fast chargers often can cost 5 to 10 times as much as 240-volt chargers. Due to this significant cost
disparity, 240-volt chargers remain the most used and widely available EV chargers. The time contrast
of several hours of charging to several minutes of refuelling may serve to deter drivers from switching
to electric vehicles.
1.3.4 Lack of Widespread, Standardized Charging Infrastructure
While there are many charging facilities emerging in the market and becoming adopted more widely in
certain countries, there is no effective, global, widespread standard charging infrastructure in place for
owners of electric vehicles. Without the development of a charging infrastructure that is accessible,
convenient, and relatively inexpensive, many owners and drivers of conventional vehicles may deem
the refuelling process of EVs to be an added hassle and thus be deterred from switching to EVs
(Glandorf, 2020).
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1. Industry
1.1 Overview
The Electric Vehicle (EV) industry is an important and growing part of the wider automotive industry.
Electric Vehicles operate on electricity, using electric motors powered by batteries instead of the internal
combustion engines of conventional vehicles. The term EV is commonly used to refer to electric cars,
but also includes various vehicle types, ranging from passenger cars to commercial vehicles, such as
electric buses. The EV industry encompasses electric vehicles and the larger ecosystem of
organizations, people, and activities surrounding them (Allied Market Research, 2020).
1.2 Business Landscape
1.2.1 Key Players
Key players operating in the global electric vehicle market include Tesla (US), BMW (Germany), BYD
(China), Volkswagen (Germany), and Nissan (Japan). These companies have a strong global
distribution network and an extensive product range of electric vehicles. Through strategies such as
partnerships and new product launches, these industry players seek to increase market share and
profitability and drive company growth.
1.2.2 Key Regions
The electric vehicle market can be divided into the following key regions: North America (U.S., Canada,
and Mexico), Europe (Germany, France, UK, Netherlands, Norway and rest of Europe), Asia-Pacific
(China, Japan, Singapore, South Korea and rest of Asia-Pacific), and LAMEA (Latin America, Middle
East, and Africa). The Asia Pacific region has contributed to the highest revenue growth, followed by
Europe and North America (MarketsandMarkets, 2019).
Figure 1
Source: (MarketsandMarkets, 2019)
Page | 1
,Figure 2
Source: (Richter, 2021)
As of 2020, China boasts the highest global EV sales and growth. Europe has also seen considerable
growth, with a significant increase in overall sales in Germany, the UK, France, and Norway (Richter,
2021).
1.2.3 Competitive Analysis - Porter’s 5 Forces
● Threat of Substitutes: LOW-MEDIUM
○ Few EV manufacturers can compete with Tesla in terms of overall performance.
○ There are still some competitors such as Polestar by Volvo.
● Threat of New Entrants: MEDIUM
○ High barriers to entry: large capital, technological knowledge, and human resource
needed.
○ High regulatory barriers to entry.
● Bargaining Power of Suppliers: MEDIUM
○ High number of suppliers in the industry
○ Tesla’s internal combustion engine drivetrain requires significantly fewer parts as
compared to a typical one.
○ Tesla relies on its suppliers for batteries, a critical component of its electric cars.
● Bargaining Power of Buyers: MEDIUM
○ Highly differentiated product
○ Targeted market
● Industry Rivalry / Competition: HIGH
○ Many other electric vehicle companies
○ Increasing demand for electric vehicles
Page | 2
, 1.3 Issues
Several issues exist as obstacles to the growth of the electric vehicle industry, some of which are
discussed below.
1.3.1 Affordability
The comparatively higher cost of electric vehicles is often an obstacle to their widespread adoption.
Because electric vehicles are not mainstream, manufacturers have yet to achieve economies of scale.
Depending on make and model, some higher-end electric vehicles are worth a fortune, though in recent
years, more affordable mass market models have become increasingly available. Even so, mass market
EV models tend to cost more than conventional ones. Despite tax rebates for EV purchases and other
such government incentives, affordability remains an important consideration influencing EV purchases
(Abdullah, 2021).
1.3.2 Shorter Driving Range
Another concern surrounding EVs is their limited driving range. Conventional vehicles can usually cover
400 miles on a full tank while EVs can only travel between 60 and 100 miles on a full charge (Hearst
Autos Research, 2020).
1.3.3 Charging Time
Charging an electric vehicle can take a significantly longer time than it takes a conventional vehicle to
refuel. Currently, three types of EV chargers exist:
1. the 120-volt plug, which can take up to several nights (20-40 hours) to fully charge a battery;
2. the 240-volt charger, which can charge a battery in eight hours or less; and
3. the direct current (DC) fast chargers which can charge an EV to 80% full in half an hour.
DC fast chargers often can cost 5 to 10 times as much as 240-volt chargers. Due to this significant cost
disparity, 240-volt chargers remain the most used and widely available EV chargers. The time contrast
of several hours of charging to several minutes of refuelling may serve to deter drivers from switching
to electric vehicles.
1.3.4 Lack of Widespread, Standardized Charging Infrastructure
While there are many charging facilities emerging in the market and becoming adopted more widely in
certain countries, there is no effective, global, widespread standard charging infrastructure in place for
owners of electric vehicles. Without the development of a charging infrastructure that is accessible,
convenient, and relatively inexpensive, many owners and drivers of conventional vehicles may deem
the refuelling process of EVs to be an added hassle and thus be deterred from switching to EVs
(Glandorf, 2020).
Page | 3
