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Three Most Significant Challenges for Tesla in Asian Countries: A Case Study

In: Proceedings of the 2025 7th International Conference on Economic Management and Cultural Industry (ICEMCI 2025)

Author

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  • Boqi Zheng

    (The University of Queensland, School of Business)

Abstract

As one of the leading global electric vehicle (EV) manufacturers, Tesla has actively expanded into the Asian market to capitalize on the increasing demand for sustainable transportation. Despite initial market success, the company faces several region-specific challenges that may undermine its long-term competitiveness in Asia. This study investigates Tesla’s primary obstacles in Asia by focusing on three interrelated domains: (1) EV Range Issues (2) consumer acceptance and perception, and (3) increasing local competition. The study employs a qualitative case study approach, combining secondary data sources that from 2020 and 2025, including peer-reviewed academic journals, official corporate reports (e.g., Tesla Impact Report), market analytics platforms (e.g., Statista), and high-reliability news outlets (e.g., The New York Times, Quartz, The Business Times), with established strategic analysis frameworks, including Political, Economic, Social, Technological, Legal, and Environmental analysis (PESTLE), Fishbone Diagram, and Porter’s Five Forces. The analysis covers major Asian economies including China, South Korea, Japan, and Southeast Asian countries. Findings reveal that Tesla suffers from persistent range anxiety due to inadequate charging infrastructure, declining consumer trust in the wake of safety incidents and privacy concerns, and intense market rivalry from regional brands like Hyundai, BYD, and VinFast. This article provides actionable insights for Tesla and similar multinational corporations on how to recalibrate their localization strategies, enhance brand reputation, and engage more effectively with regional infrastructure ecosystems.

Suggested Citation

  • Boqi Zheng, 2025. "Three Most Significant Challenges for Tesla in Asian Countries: A Case Study," Advances in Economics, Business and Management Research, in: Abdelhak Senadjki & Chee Yoong Liew & Yahua Xu & Fong Peng Chew (ed.), Proceedings of the 2025 7th International Conference on Economic Management and Cultural Industry (ICEMCI 2025), pages 942-953, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-888-2_92
    DOI: 10.2991/978-94-6463-888-2_92
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