on Tuesday, it’s time to assess the company’s long-term viability. The company’s future relies on its ability to scale production and meet affordability against Chinese competitors.
In other words, Tesla’s year-over-year operating margin decline of -333 basis points , means that Tesla is operating at a loss as the revenue is outpacing the costs. The energy division’s revenue increased 100% YoY at $3 billion, while services’ revenue increased 21% to $2.6 billion. However,Whether it is speedrail or eVTOL deployment, it is no secret that a tech gap is widening between the West and China. Likewise, China has now the most advanced and mature EV market, making for a competitive environment that results in scaling and lower costs for the end-consumer.
For Tesla to survive that kind of competition, the company would have to rely on aggressive government interventionism. The EU already obliged, having set provisional 37.6% duties on China-imported EVs, on top of existing 10% tariff, totaling up to 48%. “Though timing of Robotaxi deployment depends on technological advancement and regulatory approval, we are working vigorously on this opportunity given the outsized potential value.”
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