Should BMW expect Tesla to grow into a strong direct competitor like Audi, versus Tesla being limited to a niche or being just a flash in the pan? Is Tesla at a competitive advantage or disadvantage? How will that evolve?
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Answer:
Overall, I feel that BMW should expect Tesla to become a direct competitor from an EV perspective. Originally, when Tesla was founded, the EV market may have been a niche. However, I now feel that it is no longer a niche and is a growing realizable market. Tesla is at a competitive advantage as they are the primary drivers of innovation and design in the EV market (first mover advantage). Furthermore, Tesla solely focuses on EV’s as opposed to other car manufactures who also have to focus on their non EV models providing Tesla an advantage in the EV market. Currently, Tesla is ahead of BMW from an R&D standpoint when it comes to EV’s. I would expect Tesla’s current market share of the EV market to continue to grow as consumers are now incentivized from the government to purchase EV’s to lower the carbon emissions footprints.
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