Tesla's success would not have been possible without China's strong support. China has played a crucial role in Tesla's development, allowing it to emerge victorious against Wall Street bears. Tesla's history can be seen as a successful case of cooperation between China and the United States.
Over the past few years, Tesla has been under short pressure from Wall Street bears. As Tesla's number one bear, Charos began to short Tesla as early as 2016, believing that its price-to-earnings ratio was too high and production was insufficient. However, Tesla's share price has skyrocketed over the past few years, and Wall Street shorts have lost a lot of money, losing more than $51 billion in just over a year after 2020. This radical shift occurred in 2019, when Tesla built a gigafactory in Shanghai, thus ensuring a steady production volume. The problem of deliveries, which could not be solved for many years in advance, has been solved in China, which has completely changed the perception of experts around the world. In the past, many automotive industry experts believed that the traditional car manufacturing powerhouses were only the United States, Germany and Japan, and did not include China, but the success of Tesla's Shanghai Gigafactory proves that China has caught up with other countries in new energy vehicle manufacturing, which is a conceptual subversion for international industry experts.
In 2022, a severe outbreak in Shanghai had a severe impact on Tesla's global production, further proving Tesla's dependence on China's industrial chain. In the first half of this year, Tesla tried to increase production at its German factory, but had to abandon this plan and even cut production. These cases show that whether in Germany or the United States, the new energy vehicle industry chain is very imperfect, and it is difficult to meet the production needs of enterprises. Tesla has shown the global industry with vivid examples that if it wants to produce electric vehicles quickly and efficiently, it needs to rely on the support of China's industrial chain. Because of this, Tesla was able to beat the bears on Wall Street.
Biden's new energy policy was originally intended to promote the development of the domestic new energy industry through subsidies, but it faced a series of challenges. Tesla's case also sheds light on this problem.
Since August last year, Biden** has been committed to introducing a bill to reduce inflation, an important part of which is to stimulate the domestic new energy industry through huge subsidies. However, more than a year has passed, and no noticeable effect seems to have been observed, which has put Biden under pressure.
In an effort to change the situation, Biden has introduced stricter requirements that only electric vehicles that meet the latest regulations receive tax-free subsidies in the United States. In fact, the goal of this regulation is to hope that the entire NEV industry will have products from the United States, but it is likely that the EV industry will no longer apply for tax-free subsidies. This is because in order to obtain this subsidy, there may be severe cost and production pressures. The U.S. new energy vehicle industry chain is relatively weak, and if you want to produce high-quality new energy vehicles, China cannot do without China's important role in the industrial chain.
Tesla's example illustrates this point. Before 2018, Tesla's production has not been able to increase, which has become one of the main reasons for Wall Street bears to short Tesla. However, Tesla built a gigafactory in Shanghai in 2019, and since then, production has been guaranteed. The support of China's industrial chain has played a crucial role in Tesla's success.
Tesla's successful case warns Biden that if he wants to promote the development of the domestic new energy vehicle industry, he needs to fully consider the improvement of the industrial chain and the importance of international cooperation. Biden's big move seems inadequate in front of Tesla.
Musk's success in smashing Wall Street bears is heavily dependent on China's support. After Tesla built a gigafactory in Shanghai, China, production ramped up, stock prices soared, and Wall Street bears suffered heavy losses. Tesla's success story proves that China is overtaking in the corners of new energy vehicle manufacturing, and it also reveals the challenges facing the new energy subsidy policy in the United States.
Biden's new energy policy was originally intended to promote the development of the domestic new energy industry, but it has not seen obvious results so far. In the face of this situation, Biden has introduced stricter requirements, hoping to achieve localized production by limiting subsidies. However, this may face many difficulties in practice, especially when the industrial chain is not perfect.
Tesla's case warns Biden that only by improving the industrial chain and strengthening international cooperation can the development of the new energy vehicle industry be effectively promoted. China's important position in the field of new energy vehicles cannot be ignored, and for other countries, if they want to succeed in the field of new energy vehicles, they also need to make full use of the support of China's industrial chain.
To sum up, Musk's attack on Wall Street is backed by China, which has enabled Tesla to achieve great success. Biden**'s new energy subsidy policy is facing challenges, and Tesla's case also reveals the importance of improving the industrial chain and international cooperation. Only on this basis can we promote the healthy development of the new energy vehicle industry.