Research on Tesla’s Price Strategy in China
These authors contributed equally.
- 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.
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 -