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EC SD | In a weak moment earlier this week, I thought about buying the dip on TSLA. After some fundamental research, I decided not to...
Tesla made the same mistake as many major US manufacturers over the last 20 years. They wanted access to China's market, and were forced to agree to build factories there and teach the Chinese everything about modern manufacturing of EV cars. It worked for a few years, but in that same few years there were something like 100 new EV car companies created in China. All are state-owned since their form of capitalism is just a fiction... Now these car companies have taken over the Chinese EV market and Tesla is losing not just market share, but losing sales volumes there too. Next up was the export of Chinese-made EV cars to the rest of the world. They are already a major supplier to Europe and many other countries. This reduces Tesla's ability to compete globally, and forces Tesla to lower prices which reduces profits. China doesn't care about profits when it comes to taking over a world-wide industry and they are fine to sell at prices below even the cost of the raw materials to gain market share and become dominant in the industry.
TSLA shareholders are paying the price... | |
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Tesla
