Tesla CEO Elon Musk revealed important insights into the company's pricing strategy at the EV giant's annual shareholder meeting. Musk emphasized that Tesla adjusts its pricing based on demand and contradicted the optimistic speculation that price cuts were due to improved production efficiencies and increased competition. Musk's statement suggested that demand for Tesla's electric vehicles may not be as strong as anticipated, especially considering the rising inventory levels. Tesla's high price-to-earnings ratio, which is typical for growth stocks but not for auto stocks, raises concerns about the company's valuation during a possible economic downturn. RRisks associated with Elon Musk's legal and operating liabilities, as well as the delays and failures of promised innovations, add to the challenges faced by Tesla.