Part 8/11:
Rod points out that higher interest rates make EVs more expensive for consumers, often prompting automakers to cut prices to stay competitive. Interestingly, many competitors lack Tesla’s profit margins, meaning they might struggle to lower prices without hurting profitability. Tesla's ability to navigate these macroeconomic challenges, however, remains a core part of its competitive advantage.
Additionally, macroeconomic uncertainty affects consumer demand for EVs. Some anecdotal evidence shows weaker demand from companies like Lucid and Rivian, but analysts believe these fluctuations are temporary. Tesla's expansive market share, especially in California, where EV adoption is high, positions the company for long-term dominance despite these short-term hurdles.