1) Let's talk about Tesla's China strategy. There's a few questions here - why did the Chinese government actively encourage them to set up in Shanghai? What's in it for Tesla? Why is Tesla continously discounting their cars?
Spoiler alert: $TSLA go brrr
Sales increased and the EV market steady grew
Chinese government hardened their resolve.
Similar to Baidu, complacency was a killer.
Similar to how introducing Apple and Samsung brought up Xiaomi, One Plus and Oppo, they decided to introduce foreign competition from the best EV brand there was - Tesla.
Tesla's domestic model 3 constantly sells out (and is 65% cheaper than US model) and Tesla is estimated to have ~20% of the Chinese EV market right now.
Chinese consumers love it, they love how cool Musk is and by extension how cool the car is. They don't have Twitter