Part 3/13:
If subsidies are simply extended, it would sustain current growth trajectories. However, a more bullish scenario involves the government increasing subsidies beyond previous levels, which could significantly accelerate EV adoption in China and drive Tesla’s sales upward. The official announcements are highly anticipated, but until then, these possibilities remain speculative yet promising for the long-term outlook.
Short-Term Challenges and Opportunities
The potential extension of tax exemptions and subsidies is good news in terms of supporting Tesla’s growth. Nonetheless, there is a caveat: during periods of declining used car prices—as shown by recent inflation data—automakers face downward pressure on both used and new vehicle prices.