Tesla Gets Sucked Further Into China's Price War -- Here's Why It Will Succeed Anyway

Tesla cut prices on its Model 3 and Model Y in China amid a brutal price war and slumping domestic sales (down 12% year-over-year). However, the company is offsetting domestic weakness through exports from its Shanghai factory, which now account for over 50% of production and are often more profitable than domestic sales. This export strategy is helping Tesla navigate China's challenging market conditions.