Part 6/8:
The broader narrative surrounding electric vehicles (EVs) also forms part of this discussion. While some experts predict a decline in regulatory credits due to increased competition, Tesla's sustainability in earnings seems solid compared to other automakers like GM, which recently registered a loss. Stevenson pointed out that irrespective of competitive pressures, Tesla is still accumulating retained earnings—showcasing resilience in its business model.
The conversation touched on the complexities of brand loyalty—the challenges automakers face as they trial their EV offerings at a loss, emphasizing that market dynamics will continue to evolve in favor of companies that adapt effectively.