AutoBeta(AutoBeta.net)04/04 Report--

At noon today,#Tesla plummeted 270 billion overnight #quickly rushed to the Weibo hot search list.

On Monday, April 3, Tesla shares fell sharply, falling more than 7% in intraday trading. As of the close of April 3 EST, Tesla (TSLA) reported $194.77, down 6.12%, with a total market capitalization of $616.3 billion.

Tesla's latest data show that Tesla produced 440,800 new vehicles worldwide in the first quarter of 2023, up 44.3% year-on-year, including 19,400 Model S/X models and 421,400 Model 3/Y models; 422,900 new vehicles were delivered cumulatively, up 36% year-on-year, including 10,700 Model S/X and 412,200 Model 3/Y. This is Tesla's production and delivery volume exceeding 400,000 vehicles for two consecutive quarters. While releasing the production and sales figures, Tesla said on its official Weibo that Tesla will continue to transition to "more balanced mass production for different regional markets", including Model S/X models that are being shipped to EMEA (Europe/Middle East/Africa) and Asia Pacific.

Tesla's market value plummeted by $270 billion overnight or related to first-quarter market sales performance. The market believes that Tesla significantly lowered the price of its models in China, Japan, South Korea, the United States, Europe and other countries and regions at the beginning of this year. The decline of Model 3 and Model Y in China market is unprecedented, among which Model 3 dropped 20,000 - 36,000 yuan and Model Y dropped 29,000 - 48,000 yuan, which once ignited the consumer buying fever under the background of sharp price reduction. In the domestic market, Tesla China delivered 140,400 vehicles cumulatively from January to February 2023, including 66,000 vehicles in January and 74,400 vehicles in February, according to the Federation data.

According to the global quarterly production and sales data, although Tesla achieved double growth in production and sales, this performance still did not meet expectations. The market and investors worried that Tesla's "price war" would erode Tesla's future profit margin. As a result, Tesla's market value plummeted 270 billion yuan overnight. Tesla said it would announce its financial results for the first quarter of 2023 after the market closed on Wednesday, April 19,2023.

Tesla CEO Musk has set a delivery target of 2 million vehicles by 2023, industry insiders said, but Tesla's first-quarter deliveries, although up, fell short of expectations amid a price war. It should be noted that last week investors had high hopes for Tesla's first-quarter delivery report, so the stock rose 9%.

Driven by Tesla's price reduction at the beginning of the year, new energy automobile brands such as Xiaopeng and Wenjie followed up the price reduction, and then the "price war" spread from the new energy field to traditional fuel vehicles. In March, the high government and enterprise subsidies of several brands of Dongfeng series in Hubei Province pushed the price reduction tide to a high point. At present, the domestic market is experiencing a huge automobile price war. According to incomplete statistics, up to now, more than 40 domestic automobile enterprises have joined the "price war", and the price concessions are different, but there are also automobile enterprises that clearly do not participate in the "price war". On April 1, at the high-level forum of 2023 China Electric Vehicle 100 People's Committee Forum, Li Bin, CEO of NIO Automobile, said: "NIO gross profit rate is quite low, so we can't participate, and it's difficult for us to participate in this matter in this way of direct selling." Li Bin also pointed out: "Tesla's price reduction in the domestic market is a way to face fierce competition, Tesla Model S and Model X actually can't fight any price war, because its cost is there, but Mode3 and Model Y are a light car, itself is a very low cost car." However, there is also news in the market that Tesla will not be ruled out to cut prices again in order to meet delivery targets.

In addition, another news today has also attracted industry attention, with reports that Tesla is planning to launch a low-cost small Model Y model with a planned annual production capacity of 4 million vehicles. According to the news, Tesla is passing on this capacity strategy to the industrial chain, with 4 million capacity distributed in factories around the world, including 2 million North American super factories, 1 million German Berlin factories and 1 million Shanghai port factories respectively, and among North American factories, Mexico Monterrey factory will be the main production capacity of this new model. However, Tesla did not respond to the news as of press time.

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