It's very much the Mediatek vs Apple battle. Apple was eventually forced to sell lower-tier phones but they still make as much in profit as all of their competitors combined even though they don't have the majority of the market share.

What's interesting is that Elon said "FSD" was their answer to economy transportation and that a robotaxi would be next not an economy car. So this is Elon finally focusing back on classic hardware sales not autonomy.