Part 5/11:
Despite the reduction in vehicle prices, Tesla's stock remains resilient. According to expert Gary Black, Tesla predominantly focuses on volume-driven earnings, with sales volume having a far greater impact on stock performance than margins alone. Increased demand, especially from China's market, is expected to fill inventory levels and push quarterly deliveries higher.
Furthermore, the sheer scale of Tesla's production exports and inventory management means that even with price cuts, the company can bolster its earnings per share. A rise in deliveries driven by strong Chinese demand can significantly enhance profitability, which Wall Street values highly.