AutoBeta(AutoBeta.net)05/11 Report--

Tesla Shanghai factory finally implemented the use of domestic brand batteries. On April 11, Ningde Times held a performance presentation meeting, at which Ningde Times Chairman Zeng Yuqun said that Ningde Times will supply Tesla probably in the second half of this year, and the supply is not limited to lithium iron phosphate or ternary batteries, the specific supply of products depends on market demand.

According to this view, Tesla domestic Model 3 may usher in another round of price reduction in the second half of the year. At present, the official guidance price of the upgraded version of the domestic Model 3 standard is 291800 yuan, with a subsidy of 271550 yuan, a reduction of 32000 yuan compared with the previous sale price.

Another source pointed out that Ningde Times supplied Tesla with lithium iron phosphate batteries this year, and the supply was not less than 40 per cent of the planned capacity of Tesla's Shanghai Super Factory (Phase I).

According to a notice issued by Ningde Times in February this year, according to the agreement signed between the two sides, Ningde Times will supply lithium-ion power battery products to Tesla. The company and Tesla agreed on the product supply mode and product standards during the business cooperation. Tesla will determine the specific procurement situation by order according to his own needs, and the agreement does not impose restrictions on Tesla's purchase quantity. The final sales amount shall be subject to the actual settlement of the purchase order issued by Tesla. In addition, the supply starts in July this year, and the agreement is valid from July 1, 2020 to June 30, 2022.

The localization rate of domestic Model 3 delivered earlier was only 30 per cent. According to the localization rate plan announced by Tesla, the localization rate of spare parts is planned to rise to 70%, 80% by July and 100% domestically by the end of the year, using power batteries provided by local suppliers. Therefore, as the localization rate increases and costs fall, there is still room for Model 3 to reduce its price.

Societe Generale Securities earlier released a research report showing that after Tesla adopted the domestic supply chain, the domestic Model 3 will have a maximum price reduction of 27% Murray 34% at the cost level.

Tesla's Shanghai Super Factory is currently operating at full capacity and will accelerate its target of producing 150000 vehicles by 2020, according to official sources.

Tesla, who continues to cut prices to compete for market share, will be a "disaster" for domestic new energy vehicle brands and products.

According to the latest report, in the first quarter of this year, LG Chemical ranked first with a market share of 27.1%, Panasonic and Ningde Times ranked second and third with 25.7% and 17.4% respectively, while BYD, another Chinese power battery giant, fell to sixth with only 4.9% of the market share.

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