Part 5/13:
Ives elaborated that Tesla's valuation is not solely based on current sales but also on its potential to capture a significant share of the EV market, which is projected to be worth around five trillion dollars globally. He contrasted Tesla with traditional car manufacturers like Toyota, which still prioritize hydrogen fuel technology, leading to uncertainty about their transition to fully electric models.
Price Cuts and Market Strategy
Tesla's recent price reductions—particularly in China and possibly in the U.S.—are seen as strategic moves to accelerate sales amid a "murky macroeconomic landscape." Ives explained that these cuts are akin to "ripping off the Band-Aid" and are facilitated by Tesla's flexible margin structure, which gives the companyroom for such adjustments.