What are the challenges and opportunities of competing in the electric vehicle industry ? As companies enter new industries , they will always face challenges and opportunities in regards to competition . In the electric vehicle industry , a main challenge would be credibility and reliability of the product provided as well as within the company . Upholding a well -managed reputation and image in an industry such as the electric vehicle industry , is challenging a frightening to the providers Consumers have always been lead to use oil or hydrogen cars , so when the idea of an electric car is put into the industry , credentials are questioned . . Providers in the electric vehicle industry face the challenge of overcoming their consumer's perceptions that these cars are underpowered and operate in short ranges . As mentioned in the case , charging stations are very costly and are expensive to install , making these cars of less popular demand . In addition to the costly price of charging stations , the amount of money that it takes to produce these cars is immense , therefore , making it harder to receive the return on the investment made that was put into the creation of these cars . As the Tesla Motors case stated , several companies have attempted to enter the electric vehicle market , but have run out of money The technology that is currently in the industry is advancing at an exponential rate and providers are racing to see who can accomplish new age technologies first , and succeed . Along with that , current technology may not be competent enough to be publically accepted to the extent that is needed . This creates a battle by the providers to acquire the consumers to prefer electric vehicles over their alternative cars