AutoBeta(AutoBeta.net)10/24 Report--

A notice from Tesla quickly went viral on Weibo, causing strong market concern. Tesla China official announced that from now on, Tesla in Chinese mainland area will adjust the price of Model 3 and Model Y, starting at 265900 yuan for Model 3 models and 288900 yuan for Tesla Model Y models (both are subsidized starting prices).

According to the "Tramway report" query Tesla China's official website learned that in Chinese mainland area, Tesla's sales of Model 3 and Model Y dropped by 1.4-18000 yuan and 2.0-37000 yuan respectively. Among them, the rear drive version of Model 3 decreased from 279900 yuan to 265900 yuan, a direct drop of 14000 yuan; the high performance version of Model 3 dropped from 367900 yuan to 349900 yuan, a direct drop of 18000 yuan; Model Y rear wheel drive version dropped from 369 900 yuan to 2889 thousand yuan, a direct drop of 28,800 yuan; and Model Y long-lasting version dropped from 394,900 yuan to 357,900 yuan, a direct drop of 37,000 yuan The Model Y high-performance version dropped from 417900 yuan to 397900 yuan, a drop of 20000 yuan.

It is worth mentioning that it was reported that Tesla would reduce the price of the Model 3 and Y models by up to 40, 000 yuan, making the starting price of the Model Y model less than 300000 yuan. Tesla's response to rumors that domestic models will have a sharp price cut on September 30th is not true. However, only in the past half a month, rumors have come true.

Perhaps because Tesla refuted the rumor, coupled with Tesla's early insurance subsidies for domestic models, many consumers chose to buy Tesla, and after Tesla officially announced a price reduction, car owners successively formed rights protection groups, and even went to offline stores to protect their rights.

Tesla released its financial results for the third quarter of fiscal year 2022 on October 19, local time. According to the data, Tesla's total revenue in the third quarter was $21.454 billion (about 155.086 billion yuan), an increase of 56% compared with $13.757 billion in the same period last year. In addition, the net profit attributable to common shareholders was $3.292 billion (about 23.797 billion yuan), an increase of 103% compared with the net profit of $1,618 million for common shareholders in the same period last year. It is important to note that its revenue fell short of the $22.09 billion expected by Wall Street, the first time Tesla's revenue has fallen short of Wall Street expectations since the third quarter of 2021.

Outsiders are more worried about Tesla's production capacity and sales than revenue and profit. Affected by the supply chain and the epidemic, Tesla delivered 343830 cars in the third quarter, which was the highest in a single quarter, but lower than the 358000 expected by Wall Street. The longer-term impact is that Tesla's annual delivery target of 1.5 million vehicles may be difficult to achieve.

In addition, Tesla's profitability is also facing challenges and impacts due to factors such as rising raw material costs and the climbing of new factory capacity. Tesla's gross profit margin of automobile business in the third quarter was 27.9%, also lower than the 28.4% expected by the market. and lower than 30% for the second quarter in a row.

Tesla's revenue, gross profit margin, delivery volume have not reached the passing line, and there are less than two months from the end of 2022, the market is most concerned about whether Tesla can still complete this year's KPI? Data show that Tesla delivered a total of 908573 new cars worldwide in the first three quarters of 2022. If Tesla wants to achieve his annual target of 1.5 million, it means that 600000 new cars will need to be delivered in the fourth quarter. This is not a small number. Kirkhorn, Tesla's chief financial officer, said full-year deliveries were unlikely to grow by 50 per cent this year because of transport bottlenecks.

Of course, in order to complete the KPI as much as possible, Tesla also took great pains. As we all know, China is not only the largest market for new energy vehicles in the world, but also Tesla's largest single market in the world. In July this year, Tesla Shanghai Super Factory revamped the production lines of Model 3 and Model Y, in which the second phase of Model Y production line was completed on July 16, and the first phase of Model 3 production line was completed on August 7. According to the official website, except for the Model Y rear wheel drive version, which is expected to be delivered in 1-4 weeks, other versions are expected to be delivered in 4-8 weeks.

On September 16, the internal mail of Tesla shows that the owners of domestic Tesla Model 3 and Model Y delivered during September 16-September 30, 2022, if they choose to buy Tesla's in-store insurance, and the insurance includes compulsory insurance and car damage insurance, can enjoy an insurance subsidy of 8000 yuan, which is in the form of a direct reduction of 8000 yuan in car price at the time of delivery. Tesla China confirmed the above news.

Tesla officially launched an insurance subsidy activity on October 1 to December 31, 2022, ordering and completing delivery of all Model3 and ModelY models (only applicable to unlicensed vehicles). If car owners choose to purchase corresponding insurance through Tesla cooperative insurance institutions, they can enjoy an insurance subsidy of 7000 yuan.

In other words, on the one hand, increase production capacity and reduce delivery cycle, on the other hand, through "disguised price reduction" to lead more consumers to choose Tesla, no matter which measure, the ultimate goal is to complete Musk's Flag as much as possible.

However, although Tesla's delivery cycle has been shortened, what worries the market is the fierce competition Tesla faces in China. A few years ago, Tesla was a hot electric car, but from the perspective of the current market, as more and more new products enter the market, Tesla's halo has become dimmer.

In this context, it is rumored that Tesla will launch a low-cost model. In a conference call after Tesla's third-quarter earnings release, Musk revealed an important message, saying that the company is focusing on developing the next generation of cars, which will cost half as much as the Model 3 and will produce as much as Tesla's products combined.

According to Musk's estimate of halving the cost of the new platform, the price of the new model will be half the price of the Model 3, or about 150000 yuan, which is already full of competitors, especially BYD, including Song and Qin. Therefore, even if Tesla launches "half-price Tesla", it may be able to effectively boost sales, but BYD's existence is nothing more than the biggest headache for Tesla.

In the US market, Tesla is also "unbearably cold". Traditional car companies such as General Motors and Ford are all laying out electric vehicles. In the European market, due to the rise in raw materials, supply chain and energy crisis, Volkswagen electric vehicle sales are growing significantly, Tesla is not the market's first choice.

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