INNOVATION IN THE EV INDUSTRY: CASE STUDY OF TESLA 2019 – 2025

Abstract: This study investigates Tesla’s strategic application of technological innovation within the electric vehicle (EV) industry, focusing on the U.S. market between 2019 and 2025. As global demand for sustainability and smart mobility accelerates, Tesla exemplifies how firms can integrate technology, data, and vertical integration to gain lasting competitive advantage. Using secondary data from company reports, industry analyses, and academic literature, the study explores Tesla’s product, service, marketing, and R&D strategies as interconnected pillars of innovation. Findings reveal that Tesla’s innovation approach which anchored in autonomy, digitalization, and renewable energy has revolutionized the EV industry. Continuous software improvements, over-the-air (OTA) updates, and AI-driven safety features have enabled superior performance and customer engagement. However, challenges such as inconsistent quality control, overreliance on Elon Musk’s leadership, and limited service scalability persist. The study concludes that Tesla’s innovation strategy demonstrates a dynamic balance between technological experimentation and strategic discipline. Future growth depends on strengthening production quality, diversifying communication channels, and enhancing AI-enabled customer support. Tesla’s experience offers both theoretical and practical insights into how technology innovation can redefine competition in the global automotive industry. Keywords: Tesla, technological innovation, electric vehicle, vertical integration, strategy, competitive advantage. Title: INNOVATION IN THE EV INDUSTRY: CASE STUDY OF TESLA 2019 – 2025 Author: Nguyen Huynh Trong Hieu, Pham Tran My Duyen International Journal of Novel Research in Marketing Management and Economics ISSN 2394-7322 Vol. 12, Issue 3, September 2025 - December 2025 Page No: 31-38 Novelty Journals Website: www.noveltyjournals.com Published Date: 12-November-2025 DOI: https://doi.org/10.5281/zenodo.17588714 Paper Download Link (Source) https://www.noveltyjournals.com/upload/paper/INNOVATION%20IN%20THE%20EV%20-12112025-2.pdf