The Chinese automotive industry, the largest car market in the world, is struggling to deal with a combination of extreme difficulty, including a growing price war and a systemic overcapacity, soaring debt and an imminent global shortage of semiconductors. These complex pressures are not just weakening the sustainability of the industry in the long-term, but […]
Tesla’s Price War: A Perilous Strategy Undermining Profitability and Market Dominance in a Crowded EV Landscape
In a risky, yet ever more dangerous, move to fire up sales and repel a serious threat of international competition, Tesla has been aggressive in cutting prices on its most popular electric vehicle models. This was a strategic offensive, launched more than a year ago and stepped up in recent times, to spur the company […]
Tesla’s Aggressive Price Strategy Upends Auto Industry: Market Share Shifts and Legacy Automakers Face Unprecedented Pressure
The recent wave of aggressive pricing cuts by Tesla is spreading throughout the entire electric vehicle industry worldwide, causing a fundamental re-think of how to approach the market, and how to position in the long term. Although the said adjustments may seem like tactical moves designed to trigger instant sales, they are indicative of a […]