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Running Head: AUTO INDUSTRY
Auto Industry – Tesla
Tesla has become a household name within a very short period of time because of
embracing revolutionary technology in the construction of its automobiles. The company began at
the back of making batteries and ventured into the realm of automobile construction with an
emphasis on electric cars (Faiz, 2019). Its current president, Elon Musk, has pledged to diversify
the company and continue its production of batteries despite the surge in its car industry. The
president made the call on the back of a profit alert which further cements the astronomical growth
of the company.
The development of its automobile sector has come to define the firm and affect its profit
margin. However. In its quest to improve its market share in the automotive industry, the firm has
had to come up against the more established players. The biggest hurdle to its market entry remains
its competition from mostly its European and Japanese competitors (Faiz, 2019). Tesla’s name
recognition remains fairy low beyond the United States and its channels of distribution are not as
widely distributed as its competition. Additionally, the technology that forms the basis of its
automobile portfolio is not reliable enough.
Statement of the Problem
As earlier stated, the company has created a niche of its own in the electric car market
industry. Although the move has largely been b...