Part 7/10:
Tesla’s ongoing US price cuts have sparked headlines around margins and macroeconomic challenges. Nevertheless, analysts believe Tesla will maintain its industry-leading operating margins, partly due to new EV incentives and the boost from federal tax credits.
Meanwhile, traditional automakers struggle with declining internal combustion engine sales. For example, BMW reported a 1.5% decline in overall units in Q1, despite an increase in EV sales—implying a significant drop in non-electric vehicle sales that may threaten profitability.