Tesla does price cuts all the time–so the “overcapacity” claim is nonsense. They cut prices when there is “overcapacity” and then adjust future production to the “new normal” price and volume.
Various other Chinese producers are targeting overseas markets because that is where they can sell the most cars. US producers are scared of real competition within the US market. BYD will eat the US producers cake AND ice cream because they have come up with a novel way to reduce costs to a minimum–without subsidies. Looks like BYD outsmarted Musk–again. Wait for the teardown of the 2026 Tesla low-end cars–if they have any. IMO, they will not have anything competitive.