Analysing on External Environment and Industrial Competition of High-Tech Companies—Using Tesla as an Example

Abstract

As the impact of the global energy crisis deepens, traditional oil resources are exhausted, and the harm caused by air pollution and rising global temperatures is increasingly severe, the government and automobile enterprises generally believe that energy saving and emission reduction is the future technology development direction of the automobile industry. The main direction of the attack is the general trend of new energy vehicles to replace traditional vehicles. As a leader in new energy pure electric vehicles, Tesla Motors has created a new concept of using the Internet for manufacturing cars and opened up a new brand segment of the automobile market. This paper mainly uses the PEST analysis model and Porter's Five Forces analysis model to understand the essence of Tesla is not a pure electric vehicle manufacturer, but a high-tech innovation driver at the forefront of the world. Based on the PEST model analysis, tesla's development is still at the right time and place despite the impact of COVID-19. From Porter's Five Forces model, Tesla has higher bargaining power and a strong dominant position with upstream suppliers and service providers. Tesla has a first-mover advantage due to its customers' weak bargaining power, which lets Tesla's leading position in the industry cannot be surpassed in the short term.