AutoBeta(AutoBeta.net)11/22 Report--

On November 22nd, a report that "two waves of promotions don't work and Tesla will cut prices" spread widely on the Internet. According to the report, after two promotions, Tesla's order increase is still less than expected, so Tesla will launch new "price reduction measures" before the end of the year to promote sales.

In response to this news, Tesla told the media that this is not true news. At the end of last month, Tesla announced that Tesla in Chinese mainland has adjusted the prices of Model 3 and Model Y, with a maximum price reduction of 37000 yuan. In September, Tesla provided users with a preferential scheme of 8000 yuan insurance subsidy.

According to previous reports concerned by the automobile industry, on September 16, Tesla's internal email showed 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 final payment. The insurance subsidy policy covers domestic brand-new models, in addition, exhibition cars and non-brand-new cars (without a formal license plate) can also enjoy this preferential policy. Later, the news was officially confirmed, and the plan was interpreted by the industry as a "disguised price reduction". At the same time, there is a view that Tesla's insurance subsidy activity is only a transitional behavior, or there will be official price adjustments.

Originally, the above-mentioned subsidy "promotion" activity ended at the end of September, but on October 1, National Day, Tesla raised his "price butcher's knife" and announced that all Model3 and ModelY models (only applicable to unlicensed vehicles) were ordered and delivered between October 1 and December 31, 2022. If car owners choose to buy insurance through Tesla's cooperative insurance institution, they can enjoy an insurance subsidy of 7000 yuan. In other words, Tesla's insurance subsidy activity will continue until the end of this year.

It wasn't long before Tesla China announced a price reduction. Tesla China official Xuan: from now on, the price of Model 3 and Model Y is adjusted by Tesla in Chinese mainland area, the starting price of the adjusted Model 3 model is 265900 yuan; the starting price of Tesla Model Y model is 288900 yuan (both after subsidy), of which Model 3 and Model Y drop by 1.4-18000 yuan and 2.0-37000 yuan respectively. It was originally thought that such a price reduction had already been quite large, but less than half a month later, Tesla China issued another poster saying that from November 8 (inclusive) to November 30 (inclusive), the final payment can be reduced by 8000 yuan if you buy the car insurance combination of existing cars and cooperative insurance institutions and complete the car pick-up on schedule; from December 1 (inclusive) to December 31 (inclusive), the final payment can be reduced by 4000 yuan.

For Tesla's successive introduction of subsidies and price reduction of models in the Chinese market in the past three months, it is generally believed that Tesla achieved his annual target in order to sprint delivery volume. After Tesla announced the price reduction, the member of the expert committee of China Automobile Circulation Association once analyzed that the price reduction on October 24th indicates that Tesla's impulse order is not enough, and hopes to increase the order volume through price reduction. However, Tesla's price reduction did not achieve the desired results. Judging from the weekly sales trend from September 26 to October 30, Tesla's sales have not increased rapidly in recent weeks. Tesla was originally expected to reduce prices in mid-November, which also shows that the order pressure is very high.

According to the latest data released by the Federation of passengers, Tesla sold 83135 vehicles wholesale in China in September 2022, including 5522 for export and 77613 for domestic retail. Tesla sold 71704 vehicles wholesale in China in October 2022, of which 54504 for export and 17200 for domestic retail. The main reason for the contrast between Tesla's domestic sales and external supply in September and October is that the vehicles produced by Tesla's Shanghai factory in the first two months of each quarter will mainly be sold to overseas markets, while Chinese mainland will be mainly supplied in the third month.

In addition to the above reasons, there are also media reports that Tesla's heavyweight price cuts and promotions are also related to the substantial increase in production capacity after the completion of the transformation and upgrading of Tesla's Shanghai factory production line. After upgrading, Tesla's Shanghai factory has increased its annual production capacity from 450000 vehicles to 750000 vehicles, making Tesla the super factory with the highest production capacity at present. According to the data, the capacity of Tesla's Shanghai factory was 484130 vehicles in 2021. After the transformation was completed this year, capacity has been increased to 1.1 million vehicles, an increase of about 127 per cent. At present, Tesla's new car delivery cycle in the Chinese market has been greatly shortened. According to the delivery date announced on the official website, the expected delivery time for all models of Model 3 and Model Y is 1-5 weeks. In terms of sales volume, Tesla delivered a total of 335351 new cars in the Chinese market from January to October 2022, an increase of 53.5% over the same period last year, which is out of proportion to the increase in production.

Official data show that Tesla delivered a total of 908000 new cars worldwide in the first three quarters of 2022, according to the annual sales target of 1.5 million, which means that Tesla needs to deliver more than 500000 new cars in the fourth quarter, achieving at least 45.7% month-on-month growth. It means that Tesla may not be able to achieve this sales target this year.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat