I am not a Tesla Inc (NASDAQ: TSLA) bull. In fact, I have been quite critical of the company ever since I started investing. Especially when it comes to Elon Musk, whom I think is just too volatile when it comes to handling the public relations of the company. You would never want your CEO to sell shares of the company, driving share price down, just to buy over his favorite social media company. The latest price cuts which dominated Tesla Inc.’s Q1’23 results are yet another wild card, that not only punishes the share prices of Tesla but also other Chinese EV makers. But, here’s why I think, that all of these short-term pain, could bode well for the longer term.

1. Price cuts to continue fueling the growth

Source: 2023 Q1 Tesla Quarterly Update Tesla’s growth seemed to have normalized and plateaued a bit. Yes, they still did grow 24% YoY. But automotive revenues only did 18% YoY.