TSLA’s market share in China’s domestic EV market has been on a steady decline since peaking at 16.8% in 1Q20 (it came in at 10.2% in 1Q22, down -660bps from the peak). Stated differently, it is our opinion for TSLA to keep its sales growing in China, it will have to resort to aggressive price cuts, which will drive its “magical bean gross margins” lower (our opinion – we believe TSLA uses warranty “accounting shenanigans” to report margins that are higher than they should be.
Tesla is producing 1st generation EV which need external charging. At end of 2022 public will see the technology which will usher a 2nd generation of EV.
