After years of pumping cash into the sizzling electric-vehicle market, Tesla Inc. and other major automakers are facing a new dilemma: what to do when demand chills.
Click here to read the story at fortune.com.
- What is supply and demand?
- Why is supply and demand important in business?
- Why has the demand for electric vehicles declined?
- How much influence do you think marketing had on the increased demand for electric vehicles?
- What happens to car dealers when demand declines?
- What is a niche market?
- What type of consumer is a “luxury buyer”?
- What type of consumer is an “early adopter”?
- Initially, EV buyers were mostly luxury buyers and early adopters. Does that mean EVs have largely been a niche market?
- This story reports that auto manufacturers have committed $100 billion across North America to create EVs that appeal to the mass market, not just luxury buyers and early adopters. Why?
- How would you describe the current economy in the United States, based on what you learned from this news story?
- How might that influence demand for EVs?
- Why is price an important function of marketing?
- Why did Tesla significantly cut the prices of its vehicles this year?
- What is a profit?
- Why do you think Tesla is the only US carmaker that currently operates a profitable EV business?
- If that is the case, why are other automakers making EVs?
- What is profit margin?
- How might lowering prices, as Tesla has done, impact profit margins?
- Why is that important to a company like Tesla?