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Introduction
Macroeconomic conditions are tough for electric vehicles, or EVs, and their makers today. This environment does not leave an exception, as it widely applies to all automakers, including Tesla, Inc. (NASDAQ:TSLA). Tesla’s growth has been nothing but amazing in the past few years. The company’s ability to scale should not be taken lightly. However, today’s macroeconomic conditions are taking a toll on the company’s potential growth and profitability, and I believe this will only get worse in the coming few quarters.
Consumers’ financial health is declining fast, which is reflected in numerous data, including the delinquency rates. As the economy continues to slow, an ever-increasing number of consumers will likely be pushed out of the market for a new car. Further, with the declining consumers’ financial health, many lenders will likely be more stringent. Overall, the macroeconomic conditions are expected to…
