Part 10/12:
While Chinese automakers operate on razor-thin margins due to aggressive expansion strategies, Tesla maintains high profitability—roughly 5-10% margins—thanks to its premium branding, vertical integration, and manufacturing efficiencies. Because of these strong margins, Tesla's top-line revenue continues to grow, with potential allocation of cash for future projects like full-scale Autopilot deployment, Optimus robotics, and network expansion.
Future Outlook and Strategic Implications
White emphasizes that Tesla's ability to produce and sell high-margin vehicles at scale in China puts the company in a strong position for continued dominance. The localized manufacturing of lower-cost models, combined with China's large and growing EV market, offers immense opportunities.