Research on Co-opetition Strategy of New Energy Vehicle Companies Based on Stackelberg Game: Taking Tesla and BYD as Examples

Abstract

With the support policies of various countries, new energy vehicles are developing rapidly. The promising prospect of new energy vehicle market also leads to the competition between oligopolistic companies intensify. Based on Stackelberg game model, this paper analyzes the problem of production and revenue between Tesla and BYD in the state of competition and cooperation. The research results of this paper show that: without considering the difference of entry cost and marginal cost between the two companies, the optimal strategy of both companies is to cooperate in making production decision and suggest the corresponding countermeasures in the cooperation mode. In order to maintain the leading edge of both parties in the industry, Tesla and BYD should combine resources to reduce entry cost and marginal cost, widen the cost gap with late entrants, and reduce competitive pressure. The research in this paper has important practical significance for the future development of new energy vehicles.