Core Viewpoint - Tesla has experienced significant stock volatility, with drops exceeding 30% on multiple occasions, indicating potential for abrupt declines in market capitalization [1] Group 1: Production Expansion Plans - Tesla plans to expand production at its Gruenheide factory from approximately 250,000 cars per year to one million, which involves constructing a new assembly hall the size of 60 soccer fields [3] Group 2: Identified Risks - Risk 1: Escalating price wars could lead to major margin compression, impacting profitability [4] - Risk 2: There is a decline in market share in critical growth areas, particularly in China, where Tesla delivered 73,145 vehicles in November 2025, a slight decrease from 73,490 units sold a year earlier [5][10] - Risk 3: Production shortfalls related to the Cybertruck and 4680 battery technology could hinder revenue generation, with a key supplier writing down its $2.9 billion cathode supply deal for 4680 batteries by over 99% [6][10] Group 3: Historical Stock Performance - Tesla's stock has seen significant downturns in past corrections, plummeting approximately 54% in 2018, 61% during the Covid crash, and 74% during the inflation surge, highlighting its volatility [7] Group 4: Financial Metrics - Revenue growth has declined by 1.6% over the last twelve months, while the three-year average growth stands at 9.3% [11] - The company has a free cash flow margin of almost 7.1% and an operating margin of 5.1% for the last twelve months [11] - Tesla's stock is currently trading at a P/E ratio of 278.0, indicating a high valuation relative to earnings [11]