Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)

Research on Tesla’s Price Strategy in China

Authors
Shuwen Qin1, a,*, , Guangzheng Wu2, b, *,
1Jiangxi University of Finance and Economics, Business Administration faculty, Nanchang, Jiangsu, China
2Queen Mary University of London, Corporate finance faculty, London, The United Kingdom

These authors contributed equally.

*Corresponding author. Email: a2201801178@stu.jxufe.edu.cn
Corresponding Authors
Shuwen Qin, Guangzheng Wu
Available Online 15 December 2021.
DOI
10.2991/assehr.k.211209.099How to use a DOI?
Keywords
Tesla; Skimming Pricing; Entrant; Incumbent; Price Elasticity of Demand; Entry Blocking Effect
Abstract

In 2021, Tesla, as the leader of electric vehicles, is very common in China. Traditional automobile price research shows that automobiles as a commodity have sufficient price elasticity of demand. However, early research also shows that electric vehicles do not have sufficient price elasticity of demand as a new type of vehicle. Starting from the price elasticity of demand, this paper analyzes Tesla’s price strategy in China from three dimensions: theoretical model, econometric test, and case analysis. The research on Tesla’s sales data through the ARIMA model and Linear Regression shows that Tesla’s products have a significant price elasticity of demand, which is different from previous conclusions. The case also shows that price is Tesla’s most effective weapon as a market entrant, and price reduction has brought Tesla a strong entry effect. However, the original incumbents in the Chinese market have been impacted by the market, failing to seize the advantages of time and geographical location to play a very good preventive effect.

Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Download article (PDF)

Volume Title
Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
15 December 2021
ISBN
978-94-6239-483-4
ISSN
2352-5428
DOI
10.2991/assehr.k.211209.099How to use a DOI?
Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Shuwen Qin
AU  - Guangzheng Wu
PY  - 2021
DA  - 2021/12/15
TI  - Research on Tesla’s Price Strategy in China
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 594
EP  - 603
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.099
DO  - 10.2991/assehr.k.211209.099
ID  - Qin2021
ER  -