The Study On The Internationalization Strategy Of TESLA

In 2020,Tesla’s global sales of new energy vehicles approached 500,000,becoming the sales champion of the new energy vehicle industry for two consecutive years.Tesla has been receiving attention since its establishment,and the company’s development process has also experienced several twists and turns.A company that has been established for less than 20 years can achieve today’s achievements and shine on the global stage,which is inseparable from the company’s strategic plan for development.This article mainly uses the strategic 5P analysis method proposed by Professor Mintzberg and the new 5P analysis method evolved on this basis to conduct a comprehensive analysis of Tesla’s international strategy,and further focus on Tesla’s strategy in China.For example,detailed analysis of location selection,market strategy,brand strategy for investment and construction,trying to find the secret of Tesla’s success,but also trying to find the problems in the process of Tesla’s promotion of corporate internationalization.On this basis,it puts forward reasonable suggestions for its future strategic choice,and at the same time summarizes its internationalization strategy and strategic experience,which also has certain enlightenment for the development of our country’s new energy automobile industry and the internationalization strategy selection of enterprises.The theoretical basis and literature review part of this article sorts out the classic theories related to internationalization and the mode and process theory of corporate internationalization,and also reviews the existing literature on Tesla’s internationalization strategy.The content of this part is as follows:Analyzing Tesla’s internationalization motivation and internationalization strategy selection provides a theoretical basis,and is also conducive to discovering research gaps in existing research and providing new innovative ideas.From another perspective,the analysis of this typical case of Tesla will further verify and enrich the relevant theories of corporate internationalization.Secondly,this article analyzes the development history of Tesla,the financial statements of the past ten years,and the degree of internationalization,in order to have a comprehensive understanding of the development of the case,and lay a foundation for the subsequent analysis of Tesla’s internationalization strategy and strategy basisThrough the analysis of the 5P and new 5P of Tesla’s internationalization strategy,it is found that Tesla has done a good job in all dimensions of the strategic 5P model:Tesla has a reasonable strategic plan for foreign investment,vertical integration,and high profitability——excellent strategies,innovative business models,precise product and market positioning,and advanced environmental protection concepts.But switching to the dynamic perspective of the new 5P analysis,Tesla’s internationalization strategy is still exemplary but not perfect in general.Through the analysis of Tesla’s series of international business strategies in China,it is found that in terms of location selection,Tesla has given full play to its ownership advantages and also occupies all the perfect conditions for foreign direct investment.In addition,Tesla has a clear intention to establish the Gigafactory in Shanghai,China,that is,it takes a fancy to China’s labor resource advantages and the industrial agglomeration advantages of Shanghai’s Lingang District,so it is a wise choice for Tesla to settle the Gigafactory in Shanghai.In terms of the market strategy,Tesla has adjusted its products and market positioning for the Chinese market,attracting more incremental consumers.in terms of the brand strategy,although Tesla has a precise brand positioning in China,it still has a lot to do to improve the brand maintenance and extension.Based on the above analysis,this article believes that Tesla will further utilize its unique technology and management advantages in the future to solve potential automobile quality,industrial chain risks and other issues,and on this basis,deepen the company’s internationalization and achieve greater achievement.Chinese new energy vehicle companies should also learn from Tesla’s successful internationalization experience,avoid deficiencies in its internationalization process,and achieve the rapid development of China’s new energy vehicle industry.