While the number of units sold looks strong, Tesla can no longer compete while having higher retail prices, not in the China market where competitors constantly try to bring great bang for buck, all while selling a ridiculously cheap car, almost in a race to the bottom.
So the numbers have improved and growth is always heartening for a brand, but the long term outlook is whether Tesla still has room to conpete in the EV field based on price (not just in China, but the world too), because they cannot only focus on 1 market (look how China is trying to infiltrate the India EV market).
Tesla has obviously pivoted hard to their other newer lines, like FSD/robotaxi, although whether that has any true success because Musk insists on using pure camera vision, is another mess in itself. And the AI industry where everyone rushes to pour money into the next big darling.
Tesla would do well to review their numbers and work out a proper master plan and emergency exits for when certain things go wrong, because it all feels almost like the whims and fancies of Mr. Musk and his immense wealth fueling these forays. They would not want to be caught in the middle of nowhere should things go sideways, or rather, their investors would hate to be left holding the figurative bomb.
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