Tesla Faces Intensifying Pricing Pressure From China Vehicle Surplus
China’s vehicle surplus is increasing pressure on Tesla, as excess capacity is pushed into overseas markets and threatens pricing power beyond China. Tesla shares fell about 0.6% to $365.46. In Q2 it delivered 480,126 vehicles, with 16.3% automotive gross margin, $5.8B capex, and free cash flow around -$1.1B, while investors weigh how much AI success is priced in.