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However, speculation remains regarding the company's strategy in the face of fluctuating demand, especially in the competitive Chinese market, which poses uncertainties about Tesla's longer-term growth trajectory.
The Competitive Landscape in China
The electric vehicle market in China is volatile, with numerous automakers competing aggressively, often leading to unsustainable business models and eventual demise. Many startups that benefited from government incentives have failed. Notably, companies like Xiaomi and BYD are positioned as formidable competitors against Tesla, however, their approaches and margins vary significantly.