After a series of price cuts, Tesla once again staged a high-level dive. On October 24, Tesla announced that the two main sales models Model 3 and Mode Y have been reduced again, and the price reduction of all models is between 14,000 and 37,000 yuan. In today's high production cost of electric vehicles, what does Tesla mean?
With the comprehensive upgrade and transformation of Tesla's production line in Shanghai's super factory this year, production capacity has been improved, and the delivery cycle of vehicles has been greatly shortened. It is not necessary to increase prices in a large number of brands. This time, Tesla's high-level diving has undoubtedly lowered the entry threshold for Model 3 and Model Y. The Model Y, which was previously not within the national new energy vehicle subsidy range, also returned to within 300,000 yuan due to this price cut, and caught the last bus of the subsidy.
2022 Tesla price adjustment chart Source: Future Auto Daily
This time the high platform diving has made countless domestic old users feel heartbroken; overseas market users have also frequently called out to Musk on social media, hoping that overseas markets will reduce prices simultaneously. This high platform diving tear apart the hidden worries behind Tesla. The news of
price reduction was released at 11:30 on the night before the news of
price reduction, a temporary emergency meeting was held in Beijing. The leader emphasized that "there will be new actions tomorrow morning at 8:30, so everyone must go online on time." At 8 a.m. on the 24th, Tesla suddenly announced the price reduction; Tesla salesmen started a new round of information bombing, and spread the price reduction news on social media simultaneously. This time the diving on the high platform caused a stir.
Only one morning after the message was released, the order volume in the entire Beijing area exceeded 1,000 vehicles. Tesla's official website was also in a state of collapse. Many car owners who had paid deposits before locked the car and took a seat . Tesla, which has improved its own cost-effectiveness, is expected to systematically increase sales by the end of this year.
On the surface, the increase in production capacity and shortening of product delivery cycle are the reasons for the dive of Tesla's high platform, but from a deep analysis, the fundamental reason for this price reduction comes from the decrease in order volume.
Market analysis blogger Troy Teslike shared a set of data: As of September 7, Tesla's global backlog order volume has dropped from 504,000 in July to 381,000. This backlog is equivalent to the 93-day production capacity of Tesla's global factories.
data shows that in the second quarter of 2022, Tesla's global production was 258,000 vehicles, with a delivery of 254,000 vehicles, and production and sales were basically the same; but in the third quarter, Tesla produced a total of 365,923 cars worldwide and delivered 343,830 vehicles, which is still 14,000 vehicles from the expected 357,900 vehicles. This sales are obviously unacceptable for Tesla. During the same period, BYD's new energy vehicle sales reached 201,300 units, and increased by 83.07% year-on-year. In the first three quarters, BYD New Energy sold a total of 1.18 million vehicles, higher than Tesla's 908,500 vehicles in the first three quarters.
is better than the BYD Han series, which is benchmarked against Tesla Model 3, and has surpassed its sales volume. In the first three quarters, the cumulative sales of Model 3 in the Chinese market fell 11.4% year-on-year to 99,000 vehicles; while BYD Han's sales increased by 125.3% year-on-year, with sales reaching 180,000 vehicles. After the third quarter financial report was released, Tesla's stock price fell 6.28%, and the decline that lasted for half a month still showed no sign of looking back. Musk set a goal of achieving an annual growth rate of 50% at the beginning of this year, but judging from Tesla's performance of producing 930,000 vehicles and selling 909,000 vehicles this year, it is still a little far from achieving this goal.
Tesla's emphasis on the Chinese market is increasing day by day, but its sales in the Chinese market have not met expectations. Value-added services and flexible pricing strategies have always been Tesla's winning tricks to reverse the market. In response to the pain points of users in the Chinese market, Tesla Model Y has lengthened the seat cushions on both sides of the rear row and optimized the opening method of the rear door. The gray car paint, which was originally priced at 8,000 yuan, has also been available for free since October 24.In order to "bring the new with the old" and "user fission", the recommendation plan returns. Compared with the previous recommendation plan that disappeared, this recommendation plan has also made a wave of upgrades in terms of user rights: over-charge mileage quota, 24-month FSD usage rights, Model3/Y rear-wheel drive version 12-month usage rights, etc.
Domestic special long shaft supply Model 3
With the continuous improvement of production capacity efficiency of Shanghai Super Tesla factory, Model 3 (Phase I production line) can achieve 760 units offline in a single shift, and the production efficiency of Model Y (Phase II production line) has long been improved to the level of producing 1.1k vehicles in a single shift. The production capacity can reach 26,000 vehicles within a week. By the end of this year, only one factory in Shanghai can provide a production capacity of 260,000 to 270,000 vehicles.
At the same time, the battle for new energy in the domestic market is becoming more and more intense. Many car companies such as " Wei Xiaoli ", BYD , Huawei Ask Circle and other car companies have started an accelerated iteration model, continuously launched new products, increased product technical content, and provided value-added services to dilute Tesla's first-mover leading effect in China.
It is worth noting that Tesla's gross profit margin has maintained a steady increase from 24.10% in the fourth quarter of 2020 to 32.90% in the first quarter of 2022. Affected by the epidemic, global supply chains are tight, and Tesla's gross profit margin fell to 27.90% in the second quarter of this year. Even if Tesla was able to deliver 344,000 vehicles in the fourth quarter, its gross profit margin was only the same as in the second quarter.
Global supply chain costs and raw material costs have not stopped Musk's ambitions. Musk once said at the financial report meeting that Tesla's potential future value "may exceed the sum of Apple and Saudi Aramco Petroleum." However, to achieve such a goal, Musk and Tesla not only need new products that can stimulate the market, but also large-scale expansion and the luck that God blesses.
Unlisted Tesla Roadster
Under the heavy siege of diversified markets, can Tesla continue to maintain its first-mover advantage and can it break through the siege among a number of new car-making forces? Let's wait and see.
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