I do not doubt that Tesla will be able to produce a $25,000 car for the Chinese market, but I very much doubt that that car at that price will be sold outside o

I do not doubt that Tesla will be able to produce a $25,000 car for the Chinese market, but I very much doubt that that car at that price will be sold outside of China and other emerging markets. They may see it as diluting their brand in USA and Europe, but I think more than that the margins on a car that will pass muster in the US will just be too low. Tesla was never able to make the original target price of $35,000 for the Model 3 and that is with the, ahem, streamlined interior and "aero" wheels. With that being said, Tesla may need to try. With where their stock price is at they are going to need to keep increasing revenue YoY and the only way to do that is to expand into new markets and introduce new car models. There are only so many customers in the midsize luxury car and crossover market.