In modern automotive history, no other company can match itTesla(Tesla) has also achieved such rapid growth. This brand is undoubtedly the automotive hero of the past 10 years, even rewritingElectric CarHistory, and has produced surprises again and again. Tesla is able to lead the global market by launching attractive and competitive pure electric vehicles in the right place at the right time. But with the rise of competitors, the media also pointed to five problems Tesla will face in the future.
Although we theoretically live in a globalized economy, increasing trade tensions between countries are leading to more localized vehicle manufacturing. This means that it has become more difficult to import cars due to increased regulation aimed at protecting the local industry. This has also led to increased localization trends, with automakers increasing local production, expanding their local supplier groups and reducing their dependence on foreign parts.
Tesla currently operates four manufacturing sites around the world, two in the United States, one in China and one in Germany. If it wants to addemerging marketsTo gain influence, it will have to establish itself not only in Mexico but in many countries. By localizing production, Tesla can better respond to the dynamics of each market, but it will also have a negative impact on profits because it does not have global products and supplies.
For Tesla, it can be said that success comes from China and challenges also come from China. One-third of Tesla’s global sales in the first half of 2023 will come from China. Tesla, along with VW, BMW and Mercedes-Benz, are among the Western companies most affected by Chinese demand.
This heavy reliance on the world’s largest auto market may be positive in peacetime, but could become a destabilizing factor in the event of a potential trade/political conflict between China and the United States/Europe. If many Chinese customers continue to move away from foreign car brands toward local brands, sales could rebound in an instant.
Another threat is the rapid rise of electric models from Chinese car brands. Electric vehicles are a key part of China’s economic growth in the coming years and a way for it to expand its industry overseas. There are over 170 local brands, many of which cater to the same segment of the market as Tesla. China’s rivals are likely to become Tesla’s strongest rival in the future.
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