Part 4/8:
Tesla’s ability to still turn a profit in this competitive environment hinges on its production efficiencies and market dominance. Tesla's full-year delivery estimates hover around 1.33 million vehicles for 2022, demonstrating robust manufacturing, even as delivery volumes fluctuate due to strategic pricing decisions.
The core challenge for Tesla's competitors is that they are not as profitable and are still scaling their production capacities. As Tesla continues to make market share gains, especially in China—home to many innovative EV startups—the smaller players face increasing pressure. Brand names like Nio and XPeng, which are seen as Tesla’s main Chinese competitors, are struggling to maintain their foothold amid decreased orders and cancellations.