Why are they are slashing both prices and production volume if demand is so strong? Why are they producing more than they have sold three quarters in a row?
Tesla is massively overvalued, even now after a gut wrenching decline. It’s been overvalued for years, it didn’t take a genius to know it would fall massively in the long run. Part of that played out last year.
But having real competition, being outcompeted by other OEMs - that’s all new and has come as a rather unpleasant shock to all the fanboys who thought Tesla would be an unassailable number 1 in EVs.
Tesla is a great company, but it’s in a shitty industry. In the long run industry dynamics are far more important than a jump start or technological lead, neither of which will be worth a hill of beans in a decades time.