China holds the largest share in the global electric vehicle (EV) market. As the absolute leader in global EV sales, the latest data shows that China's new energy vehicles account for more than 60% of global EV sales. Europe and the United States follow.

Why is the development of new energy vehicles in the United States not as advanced as in China?

The development of new energy vehicles in the United States lags behind China due to several factors:

1. China provides strong policy support in the field of new energy vehicles, including financial subsidies, tax incentives, and construction of charging infrastructure. Although the United States also has relevant policies, their intensity and sustainability are far less than China's.

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2. China has advantages in the new energy vehicle industry chain and supply chain, including the production of key components such as battery manufacturing, motors, and electronic control systems. China has the world's most complete supply chain system, which helps to reduce costs and improve production efficiency. The ease with which Lei Jun can produce Xiaomi electric vehicles in China and put them on the market in large quantities, compared to Jia Yueting's difficulties in mass production in the United States, clearly demonstrates the advantages of China's new energy vehicle industry chain.

3. China has invested heavily in the construction of charging infrastructure, providing important support for the popularization of new energy vehicles. The United States has relatively scarce charging piles and other infrastructure, making the promotion of electric vehicles more difficult.

In this context, it is not hard to understand the current difficulties faced by Tesla, the global leader in new energy vehicles. This year, Tesla's stock price has fallen by more than 40%. Due to declining performance, Tesla has started to reduce staff and improve efficiency, and is also focusing on the development of full self-driving technology.

Why has Tesla's performance declined?

1. With the rapid development of the global electric vehicle market, Tesla faces more and more competitors, especially the rise of electric vehicle brands in emerging markets such as China. Electric vehicle brands led by BYD offer customers a variety of choices, intensifying market competition.

2. Due to price competition in the electric vehicle market, Tesla has to join the price war, leading to a decline in the company's profits. In addition, the rise in raw material prices caused by international commodity inflation also puts pressure on the company's profits.Furthermore, the uncertainty of the global economy and high interest rates in the U.S. market will impact the demand for electric vehicles, adversely affecting Tesla's operations.

Tesla's next strategic plan makes the market bearish on the company's future development:

To cope with the current operational difficulties, Tesla is preparing to vigorously develop full autonomous driving. However, this has intensified the market's bearish outlook on its future prospects. Some analysts even believe that Tesla will exit the electric vehicle industry.

Although CEO Musk immediately denied this and accused the media that published the news of "lying," Tesla did indeed announce plans to develop autonomous driving taxis, Robotaxi, hoping to open up a new situation with this project.

However, the market believes that the commercialization of full autonomous driving technology is too far away, and Tesla's move will inevitably drag down the company's performance. As a result, Tesla's stock price has been under heavy selling pressure recently. From this, we can also understand why some experts believe that Tesla may be replaced by BYD in the future.

In summary, Tesla is indeed under great operational pressure now. As long-term value investors, the most important issue we need to consider is: What is the growth prospect of electric vehicles in the next ten years?

The answer is: The growth prospect of electric vehicles in the next ten years is very broad.

Many countries around the world have formulated policies to reduce carbon emissions and promote electric vehicles, including subsidies, tax incentives, and timetables for restricting the sale of internal combustion engine vehicles.

And the current global battery technology is improving, including the increase of energy density and the reduction of costs, which will make the range of electric vehicles longer while reducing charging time. The mass production of all-solid-state batteries is getting closer and closer, and charging for 10 minutes and running 1,000 kilometers is no longer a dream. This will inevitably deal a fatal blow to traditional fuel vehicles.The most significant highlight of electric vehicles is not the low cost of driving, but their intelligence. The combination of new energy vehicles with intelligent connected technology will bring new usage experiences and business models, turning cars into oversized smartphones. In the future, electric vehicles will become increasingly intelligent, a level that traditional fuel vehicles simply cannot reach.

Currently, the penetration rate of new energy vehicles in China has reached 50%, meaning that for every two new cars sold, one is an electric vehicle. This shows the strong growth momentum of electric vehicles in our country. Relevant departments predict that by 2029, the sales of new electric vehicles will reach 674.27 billion US dollars.

Overall, the electric vehicle industry is expected to experience explosive growth in the next decade, becoming an important force in promoting the transformation of the global automotive industry and driving sustained economic growth. Therefore, it is a correct investment choice to seek opportunities to invest in the new energy vehicle sector at present.