Tesla's tough times are over! The game changer moment was China's Government adding Tesla to its procurement list. Now TSLA can compete with BYD!

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Short sellers are getting burnt by Tesla's 44% rise in 10 days. It's been a challenging stock for some. But as a shareholder of TSLA, I am enjoying that its shares are up 40% in 10 trading days, though Tesla is still down 35% from its $414 high hit back in November 2021.

- China Government approval - I believe more growth is to come after China vowed to buy Tesla's vehicles and stop discrimination in government procurement. Now, a number of state-owned companies, including Shanghai Lingang Special Area Investment, have bought Tesla's Model Y cars for business use, as an example of equal treatment to foreign companies in government procurement. This is just the beginning and shows that Tesla can gain market share in the biggest EV market in the world and compete with BYD, remembering that in China, the majority of taxis and buses are BYDs. Adding Tesla to China's government-approved list of vehicles will be a game-changer to a certain extent, as we have to remember that China has 50% EV penetration.

- Tesla shares are also in an upgrade cycle after it sold and produced more EVs than expected last quarter. It sold 43,956 vehicles in the second quarter, better than the average analyst expectation of 439,302. Sales are down 4.8% from a year ago, but Tesla's sales are improving. Tesla produced 410,831 EVs in the quarter, which was 14% less than the same time last year.

- Next, we need to watch its quarterly earnings on July 23, which should be an encouraging set of numbers and a positive for the broader EV market.

- Tesla, however, has a history of missing earnings expectations (disappointing in 6 out of the last 8 results), but this time could be different and Tesla'ss tumultuous times could be behind it, given:

- China EV sales are expected to considerably pick up from here after getting the nod as a China Government vehicle. Also, consider China approved FSD.

- Cost-cutting: Elon Musk previously announced major staff cuts in April, reducing headcount by 20%. So Tesla’s earnings may be a really nice surprise and further boost its shares.

- New model: Tesla rolled out the Cybertruck, its first new model in years.

All in all, Full Self-Driving (FSD) should boost its gross profits, and Tesla’s boost in energy storage could also bode well for Tesla’s profits.