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Tesla Model 3 domestic launch, the price dropped to less than 300000, the initial listing has appeared the phenomenon of hot sales, for the domestic new energy brands which are still in cost control and in urgent need of market space, it has undoubtedly brought tremendous pressure.

Miao Wei, minister of industry and information technology, responded to the impact of domestic Tesla's price reduction. Minister Miao said that Tesla's price reduction brings pressure and challenges to other enterprises in the short term, but an opportunity in the long run, forcing China's new energy automobile companies to step up innovation.

Minister Miao said that with the localization of Tesla's new energy vehicles and lowering their prices, consumers will get greater benefits and will be able to buy new energy vehicles at lower prices. From the perspective of market competition, this will undoubtedly bring certain pressure and challenges to other domestic new energy vehicle enterprises in the short term, but in the long run, this is also an opportunity for the development of our new energy vehicle industry. "sometimes a bad thing can turn into a good thing, which can force our automobile enterprises to increase the intensity of technological innovation, speed up strategic transformation, and make use of their own advantages, so as to strive for the initiative and achieve complementary advantages in the competition with foreign enterprises. Win-win development."

Minister Miao believes that this will help internationalize competition in China's auto market and promote the transformation and upgrading of the industry. in short, a catfish may stir up a pool of water.

Tesla Shanghai Super Factory took one year to build and put into production. At the end of last year, the domestic Model 3 was delivered to internal employees and officially delivered to consumers in January and July 2020. Before delivery, the price of the standard battery life upgrade version of Model 3 (including basic driving assistance) made by the Shanghai Super Factory in China was reduced from 355800 yuan to 323800 yuan, a reduction of about 9 per cent. At the same time, domestic Model 3 entered the national list of subsidies for new energy vehicles, with a subsidy of 24750 yuan, so the actual price of Model 3 produced by a super factory in Shanghai, China is 299050 yuan.

However, after the price reduction, the domestic Model 3 canceled the service of giving away and installing household charging piles free of charge, and the purchase cost an additional 8000 yuan.

The domestic Model 3, which costs less than 300000 yuan, has only been sold for half a month, and a media survey shows that at present, Tesla's sales store is hot, with a daily sales level of 1,000 vehicles.

At present, the output of Tesla Shanghai Super Factory has reached 3000 vehicles a week, and 30 per cent of domestic Model 3 parts have been localized, which will reach 100 per cent by the end of 2020. It means that there is still room for price reduction of domestic Model 3.

It is worth noting that in the face of Tesla's price reduction to seize the market, as its biggest competitor, Xilai Automobile, still will not make the behavior of price reduction. Li Bin, chairman of Xilai, said recently, "We will not reduce the price of Tesla. We all have a negative gross profit and there is no room for price reduction." Li Bin added that although NIO will not cut prices, it will make the service better.

Tesla brings pressure and challenges to other domestic new energy automobile enterprises, or will further accelerate the industry reshuffle, survival of the fittest is imperative, and some car companies that cannot participate in the market competition may be eliminated.

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