> Tesla obviously can't give people long sub 1% loans and make a profit in 2025. I think this is not the right way to look at it. Essentially, Tesla sells the

> Tesla obviously can't give people long sub 1% loans and make a profit in 2025. I think this is not the right way to look at it. Essentially, Tesla sells the car for a price that is higher than the sum of all the input costs (the margin). Say this margin is around $10k per car. If the factories have more inventory, they could give customers a $5k discount, but they could also sell it for the full price but give a sub 1% loan. They probably loan that money for about 3 to 5%. So they only take a hit of a few procent for 2 years meaning $60k * 0.04 * 0.04 = $4800. My point is that a low percentage loan is essentially the same as discount on the purchase price. Do these continues price decreases mean that things look dire? Based on solely this information, not necessarily. Battery costs are a large part of the cost of the car, and battery costs are consistently coming down. This saves a few thousand dollars per year. So I expect prices to come down each year. That fact alone is not a problem. Having said that, we know that Tesla's margins have consistently come down for the last 3 years, and we know that Chinese cars become more competitive each year. So things aren't looking great. But again, price declines are expected and not necessarily a problem. I would say market share is the most important metric to look at.