AutoBeta(AutoBeta.net)04/12 Report--

Tesla Hong Kong announced that it would adjust the prices of Model 3 and Model Y by up to 14% on April 15, according to media reports.

The biggest price reduction this time is Model 3 Performance, with the "one for one" price from HK $440335, a decrease of 14.7%, followed by the long-lasting version of Model 3, with a price of HK $399485, a decrease of 11.06%. As for the long-lasting version of Model Y and the Performance version, the price will also be reduced by 8.7% and 9.03% to HK $459685 and HK $487205 respectively. In other words, of Tesla's six models in Hong Kong, only the Model 3 and Model Y rear-drive versions remain unchanged, with "one-for-one" prices starting from HK $341200 and HK $367100 respectively.

So far, Tesla officials have not responded to the above news.

It should be noted that this is not Tesla's first price reduction this year. At the beginning of this month, the prices of all Tesla products in the US market were reduced by 2%. Prior to this, Tesla has announced price cuts in China, Japan, South Korea, Australia, Germany, France, Spain, Portugal, the Netherlands, the United Kingdom, Norway, the United States and other countries, ranging from 1% to 23%. Among them, the decline in the Chinese market is unprecedented. On January 6 this year, Tesla China announced a large-scale price reduction, with Model 3 falling by 2.0-36000 yuan and Model Y by 2.9-48000 yuan.

With regard to Tesla's price reduction in the Chinese market, Tao Lin, then vice president of external affairs of Tesla, responded on Weibo: "behind Tesla's price adjustment, there are numerous engineering innovations." in essence, it is a unique excellent law for cost control: including not limited to vehicle integrated design, production line design, supply chain management, and even optimizing robotic arm coordination routes in milliseconds … Proceed from the "first principle" and insist on pricing at cost. " In addition, Zhu Xiaotong, vice president of Tesla Global, has said that Tesla's market share in China is still growing, and the price reduction measures at the beginning of the year have boosted market demand. As long as prices are kept within affordability, there is no need to worry about China's market share. Tesla has been working hard to cut costs on the supply side, production efficiency and other links. It also stressed that more than 95% of the supply chain of Tesla Shanghai Super Factory comes from local sources.

According to the retail sales data of the Federation, Tesla delivered a total of 137400 new cars in China in the first quarter of 2023, an increase of 26.9 percent year on year, second only to BYD, with a market share of 10.5 percent, of which 76700 were delivered in March. Among the subdivided models, Model 3 delivered a total of 42782 vehicles in the first quarter, an increase of 27.3% over the same period last year, ranking ninth in the quarterly car retail sales list; ModelY delivered 94647 vehicles, an increase of 26.7% over the same period last year, ranking second on the quarterly SUV list.

As for the "Tesla global price reduction", Tesla CEO Musk also said earlier: "the price adjustment has indeed had an impact on ordinary consumers, and pointed out that the market demand in January was twice as much as output." In early April, Tesla's market value plummeted 270 billion overnight. As for the reason for the collapse, the market believes that it is mainly related to Tesla's global price cuts and global sales that fall short of expectations. According to Tesla's official data, Tesla produced a total of 440800 new cars worldwide in the first quarter of 2023, an increase of 44.3 percent over the same period last year, including 19400 Model Spurt X models and 421400 Model 3ax Y models; a total of 422900 new cars were delivered, an increase of 36 percent over the same period last year, of which 10700 were delivered by Model Spicer X and 412200 by Model 3Universe Y. Although Tesla achieved double growth in production and sales in the first quarter, the market and investors were worried that Tesla's "price war" would erode Tesla's future profit margins. As a result, Tesla's market value plummeted 270 billion overnight.

Musk previously said that without external interference, Tesla's global sales are expected to be 2 million vehicles in 2023. Industry insiders said that in the context of the price war, Tesla's delivery volume in the first quarter increased, but not as expected, as for the follow-up Tesla to boost sales to continue to reduce prices, it is not clear. For Tesla's price reduction behavior, a few days ago, Musk said: "many people have demand but can not afford, only price reduction can meet the demand."

In addition to Tesla, after the crazy price war on domestic fuel vehicles in March, a number of domestic new energy vehicles also began to have "subsidy concessions" in April, and the way of price reduction is different from the ambiguous rate of reduction and promotion model of the fuel vehicle price war in March. On April 7, BYD launched a car purchase activity for its seal models, with a comprehensive discount of up to 31000 yuan, including 15000 cash subsidy, 10,000 yuan financial discount and 6000 yuan replacement subsidy. On April 8, Dongfeng New Energy adjusted the prices of its EX1 PRO and nano-BOX models to a maximum of 6000 yuan. On April 9, Geely Ruilan released the price adjustment description of Ruilan 9, Geely Ruilan 9 by as much as 20000 yuan. On April 10th, SAIC GM Wuling announced that it would enjoy up to 10,000 yuan in preferential subsidies for the purchase of Wuling new energy models before May 31, including cash concessions, financial discounts and so on. Hongguang MINI models can enjoy the relevant concessions.

Industry insiders expect that after this year's Shanghai auto show, there will be a new round of price cuts for new energy vehicles, a large number of new cars will be released at the auto show, new energy vehicle technologies will change with each passing day, related technologies will be greatly upgraded, and the competitiveness of old models is bound to decline. We have to cut prices to digest inventory.

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