Part 10/11:
Tesla’s foray into affordable EVs is far more nuanced than mere incremental price cuts. In Europe, the company is adopting a volume-driven approach, accepting lower margins temporarily to dominate the market segment. This aligns with Tesla’s overarching strategy to expand global market share, especially in regions that are conducive to EV proliferation.
The European market's significant price reductions and strategic focus hint that Tesla's global leadership will involve early adoption of aggressive pricing and capacity expansion—further supported by the Berlin factory and local incentives.