Analysis of the Macroeconomic Environment in The United States and China for Tesla Model 3

Abstract

China and the United States (US) are two of the biggest markets of which Tesla's products are being sold in. Through a comparative analysis of the macroeconomic environment, monetary policy, fiscal policy and trade policy of China and the United States, this report describes the potential of China’s market over the US for the new Tesla Model 3. Although the trade war between the US and China increased the cost of Model 3 to a certain extent, these problems can be alleviated by expending the Giga factory in China in turn reducing taxes and fees. At the same time, there is also the urgency of speeding up Tesla’s internationalization strategies to meet up with changing economies globally.