1. Introduction

More companies are discovering the potential and opportunities of "autonomous driving." due to the steady progress of Google's driverless program since 2017. Silicon Valley, at the forefront of technological innovation, has attracted many companies to participate in this field's analysis, development, and competition. For example, Mobileye, Nutonomy, Zoox, Drive.ai, Nuro.ai, UISEE, and Momenta are not only competing fiercely in technological research and development but also in talent recruitment and market layout. People view autonomous driving technology as a revolutionary shift in the future of transportation, and its promising market has garnered significant attention and sparked a significant investment boom. More and more investors and businesses realize that autonomous driving can not only improve traffic efficiency and reduce traffic accidents, but also significantly reduce travel costs, thereby completely changing the way people travel. This technological shift is not only a change in the automotive industry but also a revolution in the entire mobility ecosystem.

Tesla, an American electric car and energy company, and its founder, Elon Musk, are also actively involved in the research, development, and promotion of autonomous driving technology. Tesla, as a pioneer in driverless technology, develops and promotes self-driving cars with advanced features such as automatic steering and cruise control, navigation autopilot, and automatic lane changing. These technological features have made Tesla's self-driving cars attract attention in the market and continue to push the industry forward. Building on its research and development of self-driving technology, Tesla continues to innovate and optimize its technology to remain competitive in the marketplace.

Tesla's Autopilot system enables a highly automated driving experience, and ultrasonic sensors combine with powerful computing capabilities. Through continuous data accumulation and algorithm optimization, Tesla's Autopilot technology continues to improve in terms of accuracy and reliability, gradually approaching the goal of fully automated driving.

In recent years, technological innovation has been the hot topic of public opinion, and many researchers have done analyses in many aspects of the innovation of various enterprises in various directions as the research object. For instance, Yan and Chen studied the impact of innovation on enterprise competitiveness and sustainable development under the new economic normal, analyzing the challenges of enterprise business management [1]. Lin examines the port, a crucial hub for global trade logistics and transportation, and argues that implementing innovative technologies there can enhance equipment performance and decrease equipment failure rates [2]. Xu et al. study 211 food companies in the Beijing-Tianjin-Hebei region and use a questionnaire to explore the mediating role of supply chain integration on open innovation [3].

Despite numerous studies examining the impact and role of innovation in the market, the emergence of Tesla Autopilot technology has brought about some new developments. Tesla has updated its system to improve some of the previous issues, as well as applying new settings to make it more competitive in the trolley market. This paper aims to investigate the impact of Tesla's investment in the development of Autopilot technology on its market competitiveness. Studying the impact of Tesla's self-driving technology on market competitiveness aids in understanding how its technological leadership influences its market position and competitiveness, evaluates its image and competitive advantage in consumers' minds, and anticipates future market trends for trams, which can inform corporate strategic planning and product development.

To further address the above research questions and fill in the academic gaps, this thesis will first summarize the literature on technological innovation as the theoretical basis of the analysis process and then conduct better empirical analysis. In addition to the theoretical foundation, this thesis will utilize Tesla's technological innovation as a case study, providing relevant case presentations to aid in the analysis process. This thesis will conduct a SWOT analysis to examine the advantages and disadvantages of this technological innovation for both the market and Tesla, as well as the impact it has on the market. Finally, based on the analysis results, this thesis will provide reasonable advice and suggestions, including recommendations for Tesla's future actions to enhance its competitiveness and further develop its business.

2. Literature Review

2.1. Definition

As early as 1990, the famous economist Michael Porter put forward the concept of "innovation-driven development" in his book [4]. He concludes that innovation-driven development is an important stage of economic development after factor-driven development and investment-driven development [4]. Porter's theory emphasizes that innovation is not only the power source of economic growth but also a key factor in improving enterprise competitiveness and achieving sustainable development. The theory of innovation-driven development has gained widespread recognition and application due to the rapid development of globalization and information technology. The theory of innovation-driven development continuously enhances the innovation theory system, particularly in the current context of fierce international competition and the emergence of global problems. Specifically, innovation-driven development includes not only technological innovation but also business model innovation, management innovation, organizational innovation, and other aspects. Through innovation, enterprises can develop new products and services, improve productivity, and reduce costs to occupy a favorable position in the fierce market competition.

2.2. Important Results

Most researchers and scholars have found that technological innovation can help enterprises develop new products and services. Zhang and colleagues ultimately confirmed that high-tech enterprises can enhance their performance by selecting appropriate development strategies that align with their unique development situation, allocating resources rationally, and carefully screening the type of enterprise and its development situation [5]. In addition, Yan and Chen had also obtained similar conclusions; they took enterprise business management as the research object and finally confirmed that enhancing the core competitiveness of the enterprise, promoting sustainable development, improving management efficiency and effectiveness, and enhancing market responsiveness and adaptability are the roles of business management innovation in the development of the enterprise [1].

Many other scholars' studies have also found that technological innovation can help enterprises improve productivity. Miao's research showcases the advancements and innovations of 5G/6G technology, which builds on 4G technology [6]. The research also delves into the practical applications of different kinds of technologies, including their role in data exchange and transmission in the field of intelligent manufacturing, their ability to support more devices for connectivity, their application in automobile driving, and the role of Artificial Intelligence (AI) and Machine Learning (ML) in Natural Language Processing (NLP) and Intelligent Customer Service [6]. These findings demonstrate how technological innovations can enhance the productivity of enterprises [6]. Meanwhile, Lin draws similar conclusions in his article, using port equipment as an example to show the results of incorporating IoT technology, big data analytics, AI technology, and lean management as methods that can improve the efficiency of port operations [2]. Additionally, scholars have published several articles addressing similar issues. Chen, in her article, once took a mechanical auto parts manufacturing enterprise as an example to explore whether technological innovation can maintain competitiveness and improve production efficiency for the enterprise and came to the conclusion that technological innovation can improve production efficiency [7].

Simultaneously, some scholars have also investigated the notion that technological innovation can assist enterprises in enhancing their supply chain management practices. Xu and his colleagues conducted a study to investigate the impact of supply chain integration on the innovation performance of these businesses, ultimately reaching the same conclusions [3]. They found that all three approaches have a positive impact on food enterprise performance, with exploratory and utilization innovation playing a mediating role [3]. Zheng's article similarly reached this conclusion [8]. The analysis achieves this by examining the key roles of supply chain management, its economic benefits, its correlation with customer satisfaction, the challenges and solutions it encounters, and its potential for future growth [8]. Furthermore, in the article by Liu, et al., they propose that all coal companies should enhance their supervision of supply chain operations to enhance the precision of supply chain innovation and improvement [9]. In Tang's article, he used Supplier Quality Engineering (SQE) as an example to conduct research on how supply chain innovation can enhance management and cooperation between enterprises and suppliers, ultimately reaching the same conclusion [10].

2.3. Summary

According to the previous research and analysis, the impact of technological innovation on firms is multifaceted but mostly positive. In the case of Tesla, for example, its continuous innovation and investment in research and development in autopilot technology has had a positive impact on its competitiveness in the market. Tesla has enhanced its competitiveness in the automotive market by continuously optimizing and innovating its Autopilot technology to improve product performance and user experience. Tesla's autopilot technology has enabled its products to have advanced features such as auto-steering, cruise control, navigation autopilot and automatic lane changing, which have attracted the attention of consumers. These technological features provide a safer, more convenient and smarter driving experience, which enhances the market appeal and competitiveness of Tesla vehicles. In addition, Tesla has realized a highly automated driving experience through the Autopilot system's multi-camera, radar and ultrasonic sensors combined with powerful computing capabilities, continuously improving technical precision and reliability, and gradually approaching the goal of fully autonomous driving. This article concludes that Tesla's continued investment and innovative efforts in Autopilot technology are expected to further enhance its market competitiveness, promote the industry and implement sustainable growth.

3. Method

3.1. Research Design

While most previous research articles on Tesla have used questionnaires and other methods, this article employs a qualitative analytical method, specifically a SWOT analysis of the research subject, Tesla. The rationale behind selecting this method is its ability to assist the company in comprehending the strengths and weaknesses, as well as the opportunities and threats, of its business activities or projects. Simultaneously, it can aid in supporting the company's strategic decision-making process, identifying and prioritizing key issues, and aiding in the identification of market opportunities and challenges. Overall, SWOT has the advantages of comprehensiveness, clear focus, decision support, and risk management, which can help to assess the impact of Tesla's driverless technology innovation more comprehensively, so that the technology can have a positive impact on Tesla's development.

3.2. Tesla

Tesla is a world-renowned trolley company. From its inception, Tesla has been exploring self-driving technology. Elon Musk, Martin Eberhard, Marc Tarpenning, and others founded Tesla in 2003 with the initial mission of promoting the development and popularization of electric vehicle technology to decrease reliance on fossil fuels and mitigate environmental impact. As the company grew and technology advanced, Tesla began to work on developing and promoting self-driving technology. Tesla released the Autopilot system in 2014, which was a major milestone in its self-driving technology. The Autopilot system allows for self-driving functions on highways, such as automatic following and automatic lane changing. Since then, Tesla has continued to improve and upgrade its Autopilot technology, making significant progress in gradually realizing its vision of self-driving cars. Tesla's Autopilot technology has been an industry leader, and it is considered one of the most mature Autopilot technologies on the market today. Tesla is now in a new phase of development for Autopilot, and the car has significantly increased its features, such as automatic steering and cruise control, navigation autopilot, automatic lane changing, augmented summoning, self-parking, safety features, and more.

3.3. SWOT analysis

3.3.1. Strength

Tesla has demonstrated substantial superiority in technological research and development, particularly when compared to Ford. Tesla's investment in research and development will exceed $10 billion, demonstrating that its autonomous technology is at the forefront. Tesla has gathered extensive car data, which serves as valuable resources for optimizing its technologies. Examples include sensor data, driving habits, performance indicators, and environmental conditions. The Tesla fleet produces a substantial volume of data on a daily basis.

In contrast, Ford's R&D and input-data cell phones are nowhere near the scale of Tesla's. For example, Tesla records data showing crash rates with and without the Autopilot feature. In the first quarter of 2022, Tesla had one crash for every 6.57 million miles traveled with Autopilot enabled and one crash for every 1.21 million miles traveled without Autopilot.

Tesla's data-driven approach greatly improves vehicle safety. Data shows that Tesla has a 48 percent lower crash rate per mile compared to other electric vehicles. On the other hand, Ford's Autopilot technology is still in the testing and pilot phases and cannot provide the same scale and depth of data to support it.

3.3.2. Weakness

Tesla's Autopilot system has also exhibited certain limitations and inadequacies. The Tesla Autopilot technology is now undergoing rapid development, which poses a potential danger of technological immaturity and system failure. Tesla's Autopilot technology is still undergoing rapid development, which entails potential dangers associated with its immaturity and system faults. There have been 273 documented collisions involving Tesla vehicles utilizing the Autopilot feature.

Also, Tesla faces various regulatory challenges. For instance, the United States presents significant regulatory challenges for Tesla. In the United States, the issue of "ghost brakes" has received a lot of attention. Users have reported that Tesla vehicles brake suddenly in autopilot mode, posing a safety risk, and the NHTSA has launched an investigation in 2022 to look into the yields and solutions to the problem. The potential pitfalls of Tesla's driverless technology could lead to a decline in the public's trust in the company and a significant increase in the cost of product recalls and repairs, which could make Tesla's vehicles less competitive.

3.3.3. Opportunity

There are many possibilities and opportunities in the future market for Tesla driverless cars. Consumer demand for eco-friendly and sustainable vehicles is increasing as environmental awareness grows. Consumers also want to be able to control their vehicles remotely, access real-time data, and enjoy more intelligent driver assistance features through mobile apps. These market demands and features present a significant opportunity for Tesla to expand. Firstly, Tesla has a leading edge in battery technology, electric drive systems, and charging infrastructure.

Secondly, Tesla has demonstrated significant innovation in intelligent features, and its cars offer exceptional performance and an exceptional driving experience. Seizing this opportunity, Tesla will attract more consumers and increase its share of the electric vehicle market. The global self-driving car market is expected to grow from USD 2.3 billion in 2024 to USD 38.78 billion by 2032, at a CAGR of 42.3% during the forecast period.

3.3.4. Threats

Tesla is now facing several challenges. Additional technology firms and conventional automobile manufacturers are likewise allocating greater resources towards the development of autonomous driving technologies, resulting in a growingly competitive industry. Particularly in the United States, Tesla's primary rivals consist of Waymo, Cruise, Uber, and other similar companies. Waymo has significantly advanced its autonomous taxi service, now available for commercial use in cities like Phoenix. Similarly, Cruise is currently undertaking extensive tests of its self-driving technology in San Francisco. Mercedes-Benz has introduced Drive Pilot, the nation's first certified Level 3 self-driving system. Nevada and California are currently testing this technology. Waymo and Cruise are challenging Tesla's dominance in the self-driving sector, despite its current 15.7% share of the global electric vehicle market in 2021 and 14% share in 2022.

4. Result & Discussion

Generally speaking, Tesla's leading position in autonomous driving technology and its data-driven approach primarily reflect its technological innovation advantages. Tesla is also facing some notable challenges in terms of automatic driving technology. In addition, regulatory challenges are a major issue for Tesla. Regulations and policies in different countries and regions have not yet fully kept pace with the technology's development, resulting in Tesla's difficulties in compliance and adaptability.

This paper uses Tesla's SWOT analysis to draw the following conclusions: Firstly, technological innovation drives competitiveness enhancement. Technological innovation is a key factor for enterprises to enhance competitiveness. In addition, enterprises can continuously optimize their technologies and products to improve accuracy and reliability, which in turn improves the user experience and market competitiveness. Moreover, market demand drives technology development.

This thesis suggests that Tesla should strengthen its exploration of regulatory adaptation and compliance in different markets to cope with different regulations and policy requirements in different countries, based on the above findings. Secondly, Tesla should continue to increase its investment in autopilot technology R&D and continuously optimize and improve the technology's accuracy and reliability in order to maintain its market leadership position. Tesla should also improve its competitiveness with other tech companies and traditional car makers in the global market through technological innovation, data optimization, and market strategy. Finally, Tesla should attach significant importance to user feedback and safety issues, as well as enhance the safety and user experience of the autopilot system through continuous technical improvement and data analysis.

5. Conclusion

This paper utilizes a SWOT analysis to confirm the previous study's finding that technological innovation improves firms' competitiveness. It specifically examines the influence of technological innovation on the advancement of Tesla's autonomous driving technology, using it as a case study. Through a detailed examination of Tesla's investment in self-driving technology and its market success, this analysis provides further evidence to corroborate the prior study findings about the influence of technical innovation on a company's market position and its ability to boost competitiveness.

This work further refines, supplements, and advances the results and observations made by prior experts. This study contributes to the discourse surrounding the data-driven optimization process for autonomous driving technology and examines the difficulties associated with adapting to regulations and competing in the market. Prior research has inadequately examined these facets.

This paper provides an in-depth analysis of Tesla's Autopilot technology and its impact on market competitiveness, offering a case study approach that combines theoretical foundations with empirical analysis. The findings provide strategic insights for Tesla to enhance its competitiveness by focusing on regulatory compliance, continuous investment in R&D, and improving user experience and safety. Moreover, the implications extend to the broader automotive industry, offering lessons on the importance of innovation, data optimization, and market strategy for maintaining competitiveness. However, this study's focus on Tesla may limit the generalizability of the findings to other companies or industries, as Tesla's specific conditions and strategies may not apply universally. Future research could involve comparative studies of different companies in the autonomous driving sector to provide a more comprehensive understanding of the factors driving competitiveness.