Compose a 1000 words essay on Economic Analysis Paper One: Supply and Demand Analysis. Needs to be plagiarism free!
Competitors’ size and actions are also going to affect the demand for electric vehicles by Tesla. Competitors producing other alternative cars are huge with many branches worldwide. Development of widely known and trusted brands will also affect demand for Tesla electric vehicles. The actions of competitors to produce competing products will also affect demand for Tesla electric cars (Bergin 2012).
Increasing need to go green campaign will increase the demand for elective powered vehicles manufactured by Tesla Company. The demand will be triggered by the fact that electric powered vehicles do not cause any environmental pollution in its use. Oil powered vehicles are causing so much pollution combined with other pollutants, thus causing global warming. A continual degradation of the environment will continue to affect world weather conditions further than it is currently. Therefore, there is the need to reduce pollution to save the environment and electric vehicles are one of the solution. The adoption of these EV is not only effective in environmental conservation, but also cost effective for consumers since the battery cost and maintenance is lower than the cost of fueling oil powered vehicles.
However, competitors are not going to take it easy on Tesla Company. Competition will reduce the quantity demanded of Tesla EV. Some competitors are well known worldwide with several branches all over the world. Convincing their customers, most of who are brand loyalists, to shift to buying Tesla’s electric vehicle will not be easy. Competitors will intensify their marketing and vary their models to attract and retain their customers. Creating a brand name that will be widely accepted by consumers is a hard task ahead of Tesla. Chances of competitors coming up with similar products of electric powered vehicle and other parts produced by Tesla are high thus increasing
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