Part 2/8:
Market analysts suggest that Tesla may be in the process of upgrading its Chinese production lines, potentially to improve hardware and efficiency rather than because of demand waning. Interestingly, the Model 3 is not utilizing front or rear casting in China, and the Model Y only features rear Giga casting—implying that Tesla still has room to optimize manufacturing processes.
In a strategic move, Tesla could reduce prices to stimulate demand without sacrificing profit margins, especially if the demand appears to weaken further. However, some believe this demand concern is primarily reflected in today's stock prices rather than true operational issues.