AutoBeta(AutoBeta.net)02/07 Report--

After the Ningde era, domestic Tesla added supply chain members again. On the evening of February 6th, Junsheng Electronics announced that its subsidiary Shanghai Lingang Junsheng Automotive Safety system Co., Ltd. (hereinafter referred to as "Lingang Junsheng") recently received a letter of intent from Tesla (Shanghai) Co., Ltd., formally confirming that Lingang Junsheng Security is the supplier of Tesla's China Model 3 and ModelY models. Linkongsheng Security will gradually start to supply it in 2020, and the life cycle of the order is about 3-5 years.

It is understood that prior to this, the Automotive Safety Division has equipped Tesla with a full set of passive safety systems and front hood elevators that meet the requirements of the latest collision regulations, and the Automotive Electronics Division has also provided Tesla with global supporting HMI controllers and related sensors and other products. The total amount of Tesla orders obtained by the relevant departments of the company is about 7.5 billion yuan.

Affected by this, Junsheng Electronics shares closed at 26.02 yuan on Feb. 6, up 10.02%, with a total market capitalization of 32.194 billion.

Ningbo Junsheng Electronics Co., Ltd. was established on August 7, 1992. the scope of business includes electronic products, electronic components, automotive electronic devices (body electronic control system), auto parts, key automotive parts (engine intake supercharger), automotive internal and external accessories, automotive rearview mirror design, manufacturing, processing and so on.

The main products provided by Junsheng Electronics in the field of new energy vehicles include battery management systems, wireless charging and high voltage quick charging modules, 48V battery management systems, vehicle chargers (OBC), DC/DC converters, in-car charging posts and PDU distribution boxes, and have been successful suppliers to BMW, Volkswagen, Daimler, Porsche, Geely, Chery and other automobile companies.

It is worth mentioning that in the past week alone, two domestic companies have announced a supply agreement with domestic Tesla. On February 3, Ningde Times confirmed that it had signed an agreement with Tesla to formally supply lithium-ion power battery products to Tesla in July 2020. Affected by the good news, the market capitalization of Ningde era reached an all-time high.

Tesla Shanghai Super Factory was built in January 2019 and officially completed and produced Tesla Model 3 in October. On January 3, 2020, Tesla reduced the price of domestic Model 3 from 355800 yuan to 323800 yuan, coupled with new energy subsidies and exemption from purchase tax, domestic Model 3 can pick up a car for only 299000 yuan.

According to Tesla, the full localization of its supply chain is in progress. At present, the localization rate of Model 3 parts offline is only 30 per cent. It is expected that the localization rate of car body parts will reach 80 per cent in July 2020 and 100 per cent by the end of 2020. This also means that with the gradual localization of Tesla's supply chain, it is possible to further reduce prices in the future. Societe Generale Securities estimates that after Tesla adopts the domestic supply chain, domestic Model 3 has 27% room for price reduction of 34%, corresponding to an absolute price reduction of 85000-108000 yuan.

Since Tesla entered China last year, Tesla's "catfish effect" on China's new energy automobile industry has become more and more intense. China as the largest new energy vehicle market, in the face of cheap parts suppliers, Tesla can produce cars at a lower cost, suppliers can also win huge orders. For Chinese consumers, Tesla is expected to achieve 100% domestic production by the end of the year and is expected to reduce prices after the official drop to 200000 yuan, which is undoubtedly a great good news for consumers.

As for the new energy vehicle manufacturers, Tesla's full domestic production will deal a huge blow to the domestic new energy vehicle enterprises. Tesla's entry into China and the official reduction have already had a great impact on the domestic new energy vehicle enterprises. After the full domestic production at the end of the year, where should the domestic new energy vehicle enterprises go?

In 2019, the sales of new energy vehicles in China fell short of expectations, and in 2020, which continued the depressed market environment, due to the sudden occurrence of novel coronavirus, the major mainframe factories and parts suppliers were also affected. In the follow-up, related parts were supplied on time and vehicles were delivered on time. It is also a problem that the major automobile companies need to consider.

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