Is Tesla's strategy sustainable in the face of increasing competition from incumbents and entrants in the fully electric vehicle market? How should they respond to the growing competitive threat?


Answer: Tesla has multiple advantages to sustaining the electric vehicle industry. Tesla perfected the direct-to-consumer sales model. This has eliminated the dealer network and unnecessary 3rd party interventions to its operating model. Also, Tesla's battery architecture is based on commodity battery packs, which are patented and proven cost-effective. Tesla's significant advantage over its competitors is its charging networks, which are increasing in size. Tesla has the 10x improvement to its product from traditional automobiles, like over-the-wire updates, autopilot, summon feature, etc., which helps Tesla to stand apart.