While Tesla introduced the first luxury electric car at a high price, BMW introduced the i3 to enter the luxury electric car market by offering luxury at a lower and more reasonable price. To position itself optimally, Tesla considers 1) lowering its price to drive out BMW or 2) maintaining its high prices to protect its segment of the market and allow BMW to capture a different segment of the market. How Tesla assesses the situation reflects its consideration of:

		Game theory
		Co-opetition
		Interdependencies
		Tit-for-tat strategy
		Judo strategy