Analysis of Tesla’s Business Model: A Comparison with Toyota

Abstract

The rise of the electric vehicle industry led by Tesla indicates that the market will also challenge the traditional automobile industry. With the consumption of petroleum fuel and the development of new energy sources, electric vehicle companies like Tesla have attracted the public's attention and have mastered a particular market share in a few years. However, Tesla's development is not as good as it appears, and Tesla has made some business model adjustments in order to expand its market. In order to better understand the differences between the electric vehicle industry and the traditional automobile industry, we analysed the business models of Tesla and Toyota in the way of the business model canvas. At the same time, we analysed the influence of path dependence on Tesla's business model, mainly to supplement the analysis of value network factors missing from the canvas of the business model. Therefore, we also give some suggestions on Tesla's business model and current situation.