Success and dilemma: Tesla has a long way to go in China

Abstract

As a leader in the automotive industry, Tesla’s global layout starts early. In addition to its old markets in Europe and the United States, Tesla entered Chinese market in 2014 and underwent a series of success as well as rough patches. After summarizing and listing basic information ( the general trend in Chinese electric car industry and Tesla’s current sales and popularity in China), the article concludes Tesla’s situation in China from both its market competition and government’s policy towards it. The study refers to the research of previous scholars, studies the evaluation of Tesla in public sectors like reviews published in academic magazines and comments in social media and analyzes Tesla’s recent financial reports and latest trends. Based on the reference collected, it’s apparent that Tesla has received preferential treatment from the Chinese government while the strength of its growing domestic competitors should not be underestimated, imposing extra burden on Tesla. Then the article takes a deeper insight into the factors underlying Tesla’s current situation and gives out effective suggestions for Tesla to break through the current predicament, including investing more in its FSD system and further construction of Gigafactories.