Part 4/8:

The Situation in China

A critical issue for Tesla is its performance in China, where it initially saw tremendous success after opening its Shanghai plant in 2019. This factory, the first wholly foreign-owned plant in China, was pivotal in reducing costs and driving profitability. However, a downturn in sales in China poses a substantial threat to Tesla’s already diminishing profit margins. Local manufacturers, leveraging lower costs and competitive pricing, are gradually outperforming Tesla on multiple fronts.