Study of the Transition in Tesla's Pricing Strategy and the Challenges to Profit Margin: An Exploration of Dynamic Equilibrium

Abstract

This research delves into an in-depth exploration of how Tesla strives to strike a balance between adjusting its pricing strategy and maintaining favorable profit margins. Tesla's shifts in pricing strategy have far-reaching implications on the global electric vehicle market. Through a case study approach, the authors dissect how Tesla navigates the trade-offs between price adjustments and profit margin retention, encompassing intricate factors such as cost control, market demand, competitive landscape, and consumer psychology. This study offers a novel perspective for comprehending Tesla's business model, holding practical significance for other electric vehicle manufacturers and investors assessing Tesla's profitability and investment worth.