Tesla's success and Musk's victory are inseparable from the support of the Chinese market and the Chinese industrial chain. Tesla's Shanghai Gigafactory, which it built in China in 2019, has secured Tesla's production volumes, solving a delivery problem that U.S. manufacturing has been unable to solve for years. This change subverts the perception in the industry and proves that China has achieved corner overtaking in the field of new energy vehicle manufacturing. Tesla's losses on Wall Street shorts exceeded $51 billion, showing that Musk has successfully slammed Wall Street bears. Wall Street's Charros, as Tesla's number one bear, started shorting Tesla back in 2016. However, Tesla's share price has skyrocketed and created tens of billions of dollars in market capitalization, completely upending the theory of Wall Street bears.
One of the reasons for Tesla's success is the support from the Chinese market. Tesla's Shanghai Gigafactory in China has secured production and solved the problem of insufficient deliveries in the past. The successful experience of this plant has also become a reference for other automobile manufacturers. On a global scale, Tesla's success has also attracted the attention of other industries, and the development momentum of China's new energy vehicle manufacturing industry is increasing day by day, and the impact on the global economic landscape is also increasing.
Biden's inflation reduction bill includes an important element of boosting the domestic new energy industry through huge subsidies. However, this policy does not appear to have had significant results in more than a year of implementation. So Biden launched an upgraded version of the policy, requiring electric vehicles sold in the United States to meet the latest regulations in order to receive tax exemption subsidies, in fact, the goal is to promote the entire new energy vehicle industry products from the United States. However, this may lead to the EV industry no longer applying for tax-free subsidies, which can be very costly.
Although Biden's policy hopes to promote the development of the new energy vehicle industry in the United States, there are actually some limitations. Due to the incompleteness of the U.S. industrial chain, it is actually difficult to completely rely on the U.S. domestic industrial chain to produce new energy vehicles. Taking Tesla as an example, Tesla's production has not been able to rise before, which is also due to the limitations of the American industrial chain. Tesla has been facing a lack of production until 2018, which is one of the main reasons why Wall Street bears have been shorting Tesla. However, after Tesla built the Shanghai Gigafactory, Tesla's production was assured, and Wall Street bears faced huge losses.
Tesla's success in smashing Biden's big move proves China's important position in the field of new energy vehicle manufacturing. Tesla's successful experience at the Shanghai Gigafactory also shows that on a global scale, the support of China's industrial chain is indispensable for the rapid and efficient production of electric vehicles.
Tesla's success is not only a counterattack to Biden's policy, but also reveals the imperfection of the global new energy vehicle industry chain. Whether in Germany or the United States, there are problems in the industrial chain of new energy vehicles, and it is difficult to meet the production needs of enterprises. Tesla, for example, tried to increase production at its German plant in the first half of 2021, but had to abandon this plan and even cut production. This shows that the German industrial chain cannot meet Tesla's needs and it is difficult to ensure high-quality production.
Tesla's successful experience tells us that in order to produce electric vehicles quickly and efficiently, it is inseparable from the support of China's industrial chain. China has made a major breakthrough in the field of new energy vehicle manufacturing, and its successful experience is worth learning from other countries. Tesla's success also reminds us that in order to make a breakthrough in the field of new energy vehicles, we need to strengthen international cooperation, establish a more complete industrial chain, and promote the development of global industries.
Tesla's successful experience provides us with many inspirations. First of all, it once again proves that China has made an important breakthrough in the field of new energy vehicle manufacturing and has become one of the global leaders. Secondly, Tesla's success has also revealed the problems of the global new energy vehicle industry chain and exposed the reality of the imperfect industrial chain. This reminds us that in the process of promoting the development of the new energy vehicle industry, we need to strengthen international cooperation, jointly solve the problems of the industrial chain, and promote the development of the global industry.
In addition, we also need to think about Tesla's stock price skyrocketing and the huge losses of Wall Street bears. Tesla's great success is a significant opportunity for investors and a disruption to the traditional automotive industry. The misjudgment of Tesla by Wall Street bears also teaches us a lesson that we need to be more cautious and accurate when judging and investing in emerging industries.
All in all, Tesla's success is not only a counterattack to Wall Street bears and Biden's policies, but also a revelation to the global new energy vehicle industry. China's breakthrough in the field of new energy vehicle manufacturing and Tesla's successful experience are worth pondering and further promoting the development of the global new energy vehicle industry. At the same time, we also need to learn from Tesla's success and improve the accuracy and prudence of investment decisions. Only in this way can we remain invincible in the competition of the new energy vehicle industry and make greater contributions to promoting global sustainable development.