on 30-Oct-2021 (Sat)

Among them, literature review method and comparative study method are commonly used in previous academic studies. The innovation of this research is the application of the case study method, which focuses on a typical company in the new energy automobile industry (the Tesla).

We first read some literatures on authoritative business journals about the comprehensive competitiveness of the new energy vehicle, e.g., International Journal of Business Research and Information Technology, Frontiers in Economics and Management Research, Forbes Magazine. Subsequently, a literature review is conducted systematically, which helps to find the gap in the comprehensive competitiveness research of current listed companies and determine our research question.

Besides, it compensates larger financing part by equity mainly due to the 114% growth rate in additional paid in capital to $27,261 million.

The increase in two long-term solvency ratios shows the financing preference turns to equity

Firstly, compared with the traditional fuel vehicle brand, Tesla cannot compete with it in terms of technology and market demand, and the main sales vehicles cannot achieve mass production. Tesla has three models, while Ford has more than 30 models to share the cost of inventory. Thus, Tesla cannot guarantee a high inventory turnover rate as a traditional car company. Secondly, the relationship between labour and capital is tense. 2% to 3% of the total number of employees are fired because they fail to achieve their work performance, and workers are forced to work. Issues such as manual manufacturing of major auto parts have occurred. The relationship between the company members and leaders, members and the company will directly affect the production process of the company. If it causes contradictions among workers, it will lead to the risk of production chain interruption.

Accounts payable turnover is continuing decreasing. Under the impact of COVID-19 pandemic in 2020, Tesla may not be able to repay the payable in time. Therefore, the Accounts payable turnover is decreasing. The decreasing of Accounts payable turnover indicates the well management of the payable of Tesla.

However, from the year 2019 to 2020, the sales to net working capital ratio is decreasing from 17.12 to -2.53, i.e., Tesla may have the over capitalisation risk.

As demonstrated in Fig. 10, Tesla’s account receivables turnover is much higher than other companies. As the benefit of long-term savings on fuel costs and the increased environmental awareness, it encourages more buyers to switch from a conventional car to an electric car. Therefore, the barging power of Tesla is very high, i.e., Tesla’s account receivables turnover is much higher.

its operating costs are increasing in recent year which are at a relatively high level in the industry

By analysing its financial statements, one finds that employee frequent turnover may be the reason for the decline in its inventory turnover rate.

After the overcapacity reaches a certain level, there will be confusion, stagnation and crisis in production