Abstract:

This paper examines Tesla's online platform's role in retailing new-arrival and second-hand electric vehicles in the direct-to-consumer market, focusing on low-carbon globalization and the development of the circle economy, aiming to improve sustainable transportation. The authors solve the online platform’s optimal new-arrival price and second-hand price when the customer valuations are heterogeneous over two stages. By defining the customer population and the variable cost as the quantitative indicators, the numerical experiments discuss the results of the customer’s choice behaviour​ and the platform’s intertemporal profit in the direct-to-consumer market. Comparing with the traditional retailers, our analysis summarizes the economic and environmental benefits of Tesla’s direct-to-consumer business model to all stakeholders in the sustainable transportation.