Why is Tesla’s Business model so effective and what can they adapt to improve it?

Abstract

The electric vehicle (EV) revolution is gaining momentum and Tesla is playing a key role in promoting environmentally friendly transport. However, Tesla faces challenges in expanding its charging infrastructure, which lags behind its competitors. Currently, Tesla has about 16.8 thousand to 17.7 thousand chargers in the US, while competitors such as Chargepoint offer about 34 thousand chargers. As the increase in the use of electric vehicles is estimated to reach 28.3 million vehicles by 2030, the charging network urgently needs to be improved. S\&P Global Mobility recommends a fourfold increase in charging points, especially Level 2 and Level 3 chargers, between 2022 and 2025 to meet growing demand. Tesla has two main options: collaborate with other companies to create a more interconnected network or continue to build its stations. The development of Tesla's Magic Dock technology, which allows other electric vehicles to use Tesla's chargers, marks progress, but also brings challenges, such as compatibility issues due to cable length. Tesla must address these concerns to ensure that its charging network keeps pace with rapid EV growth and supports a wider range of EVs.