It's called the Law of Diminishing Returns & Tesla isn't immune.
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The Chinese auto market accounts for 30 to 40% of Tesla's profitability, #MorganStanley estimates. Its biggest competition there, #BYD (whose stock has declined since the price war began), has also introduced discounts. But waning reactions to those also "mark another climax of the price battle."

#Tesla's #PriceWar is starting to backfire | #EVMarket #ElonMusk
https://www.msn.com/en-us/money/companies/teslas-price-war-is-starting-to-backfire/ar-AA18C1JD

"BYD was the biggest winner of the year, with annual sales of 1.86 million electric cars. The company’s output was more than triple 2021’s figure of around 600,000 units, comfortably exceeding its goal of 1.5 million units.

#Tesla was left a distant second. The company’s sales started to slow last year as concern grew about an underlying mismatch between supply and demand."

In 2022, #China's #EVWar: why #BYD is beating #Tesla and #Xpeng | #EVMarket | TechNode
https://technode.com/2023/01/24/china-ev-war-2022-why-byd-is-leaving-tesla-and-xpeng-in-the-dust/

"Why it matters: The results come as Tesla faces major challenges in China from local car manufacturers, and growth in the world’s biggest EV market shows signs of a downward trend amid economic headwinds."

#Tesla margins slip amid intense competition in #China | #EVMarket | TechNode
https://technode.com/2023/01/28/tesla-margins-slip-amid-rising-costs-and-intense-competition-in-china/

I"f you set expectations low enough, it becomes easier to beat them. Do that, and investors will buy your stock in a relief rally.

That seems to be what happened with Tesla’s fourth quarter results that fell short of expectations on Wednesday after the market closed."

#Tesla Growth Slows, Margins Fall As #ElonMusk Talks Too Much #Twitter | #EVMarket | Forbes
https://www.forbes.com/sites/petercohan/2023/01/26/tesla-growth-slows-margins-fall-as-elon-musk-talks-too-much-twitter/?sh=6edbb6be3c1c

"William Li, CEO of Nio, said the Shanghai-based start-up’s EVs, which feature sophisticated in-car entertainment systems and autonomous driving technology, will help it strike a chord with customers in #Europe and #NorthAmerica and drive export volumes by 2027."

#EV makers put #China on course to overtake #Japan as the world’s top car exporter | #EVMarket |South China Morning Post
https://www.scmp.com/business/china-business/article/3208048/chinas-ev-makers-put-nation-course-overtake-japan-worlds-top-car-exporter?module=lead_hero_story&pgtype=homepage

"So what happened here, exactly? It appears Musk and his team did just enough in the mind of many investors to remove the worst-case scenario for the stock in the near-term. That worse-case scenario, pros say, would be a re-test of the 52-week low around $101.

In essence, investors are betting that Tesla's stock bottomed weeks ago."

#Tesla stock pops as worst case scenario fears subside | #ElonMusk #StockMarket #EVMarket | MSN
https://www.msn.com/en-us/money/savingandinvesting/tesla-stock-pops-as-worst-case-scenario-fears-subside/ar-AA16LjFv

If you want to know what's in store for the #birdsite, watch what's happening in Tesla. That's where all the takeover funding came from.

"Munster forecast that Tesla will log gross margins of between 15% and 20% in its key automotive division, down from 27% in the third quarter of 2022."

Steer clear of #Tesla with disappointing earnings set to drag the stock lower, strategist Gene Munster says | #EVMarket #ElonMusk
https://www.msn.com/en-us/money/other/steer-clear-of-tesla-with-disappointing-earnings-set-to-drag-the-stock-lower-strategist-gene-munster-says/ar-AA16FRQR

"The move by the Guangzhou-based carmaker to lower prices by as much as 13 per cent comes less than two weeks after rival Tesla made its Model 3 and Model Y vehicles more affordable...

The carmaker, which is backed by #Alibaba, the owner of this newspaper, and smartphone vendor #Xiaomi, said the price cuts would take effect immediately."

#Tesla challenger #Xpeng sparks all-out price war in #China’s cutthroat premium electric car sector with steep discounts | #EVMarket
https://www.scmp.com/business/china-business/article/3207131/tesla-challenger-xpeng-sparks-all-out-price-war-chinas-cut-throat-premium-electric-car-sector-steep?module=more_top_stories_int&pgtype=homepage

"While the new rules around the EV tax credits are nebulous, evolving, and at times deeply confusing, many observers have pointed out that the full advantage of these discounts — the price cuts and the tax credits together — hinges on taking delivery of a Tesla before March 31st. That’s when rules around battery sourcing are set to change."

#Tesla’s big price cuts mean ‘a major shift in the #EVMarket’ | #ElectricVehicles |The Verge
https://www.theverge.com/2023/1/14/23554886/tesla-price-cut-ev-market-deman-elon-musk

This isn't over yet, there's likely to be unintended consequences.

"Several of the owners in #Shanghai said they felt misled by Tesla sales staff who had urged them to close orders and told them that they would face higher prices in the new year."

Protesting #Tesla #China buyers vow more pressure over price cuts they missed | #EVMarket | Yahoo News
https://news.yahoo.com/protesting-tesla-china-buyers-vow-151506617.html

The protests against Tesla's sudden EV discounts (which caught earlier buyers flatfooted) were more widespread than I thought.

"Chinese state media have largely opted not to cover the protests, which online videos showed happened in cities including Beijing, Shenzhen, Chengdu and Xi'an. Reuters witnessed a protest at a Tesla facility in Shanghai."

#Tesla delivery time is longer on some #China models after discounts | #EVMarket #ElectricVehicles | Yahoo Finance / Reuters
https://finance.yahoo.com/news/tesla-delivery-time-longer-china-083630738.html

"#SHANGHAI (Reuters) -Tesla cut car prices in China for the second time in less than three months on Friday, deepening its discounts in the world's largest auto market as competition picks up and the demand outlook darkens. "

#Tesla slashes Model 3, Model Y prices in #China for second time in 3 months | #ElonMusk #EVMarket | Reuters

https://www.msn.com/en-us/autos/news/tesla-slashes-model-3-model-y-prices-in-china-for-second-time-in-3-months/ar-AA161q9o

Elon can revive Tesla's fortunes or head Twitter - not both.

"Dan Ives, Managing Director and Senior Equity Research Analyst at Wedbush Securities says Musk needs to step down from his post at Twitter ahead of Tesla earnings (January 25) as the company contends with a slew of macroeconomic headwinds"

#ElonMusk Must Step Down From #Twitter Before #Tesla Reports Earnings, #DanIves Says | #EVMarket #SocialMedia | TheStreet
https://www.thestreet.com/video/why-musk-needs-to-step-down-from-twitter-by-jan-25

"SHANGHAI, Jan 5 (Reuters) - China’s decision to end a more than decade-long subsidy for electric vehicle purchases has forced automakers, including Tesla (TSLA.O), to deepen discounts to maintain sales as demand eases in the world's largest market...
...William Li, chief executive of automaker #Nio (9866.HK), said it could take until May for China's #EVMarket to begin to recover."

#Tesla, EV rivals absorb costs after #China pulls plug on subsidy | Reuters
https://www.reuters.com/business/autos-transportation/tesla-ev-rivals-absorb-costs-after-china-pulls-plug-subsidy-2023-01-05/