Part 4/11:
However, Morgan Stanley warns that further price cuts might be necessary to meet ambitious demand targets, especially as inventory levels remain dangerously low—around 16 days of supply, the highest since Q2 2020. While this indicates strong demand, it also raises questions about sustainability and margins. The company’s production rate is already at about 1.76 million units annually, and reaching 2 million seems plausible if production and demand continue to align.
Yet, as Tesla has faced supply chain challenges and shifting market conditions, many wonder whether the recent demand is genuine or artificially inflated by aggressive pricing strategies.