Over the past week, market controversy over consecutive price increases caused by the domestic Model 3 standard extended version has been simmering, raising consumer concerns about the price of the long-range version. In an effort to ease the growing number of refunds, Tesla said on its official microblog on the afternoon of May 2 that there are no price adjustmentplans for the Chinese-made Model 3 Long Life Edition (“Long Life” version) based on factors such as production costs.
The day before, Tesla announced that it would cut the pre-subsidy price of the domestic Model 3 standard battery life from 3238 million yuan to 291,800 yuan. This is thought to be mainly to cater to the newly released new energy vehicle subsidy policy, which stipulates that “new energy passenger car subsidies must be sold for less than 300,000 yuan (including 300,000 yuan).” The domestic Model 3 standard battery life version of this price reduction, you can enjoy subsidies, after the subsidy price of 271.55 million yuan.
The move has prompted some owners who have just bought the standard life-plus version, and consumers who have already booked the long-range version, which has asked for a refund because of concerns that the long-range version will follow suit. Because eight days ago, on April 25th, Tesla had just launched a simultaneous round of official price increases for both versions of the domestic Model 3, which rose by 4,500 yuan to 323,800 yuan and the long-range version by 5,000 yuan to 344.05 million yuan. Among them, the long-term version of the full range of flights on April 10 this year officially opened the booking, is expected to start in June delivery.
In response to Tesla’s re-price adjustment, older owners have demanded compensation for the spread, but Tesla responded to the media by saying it would not pay compensation. In fact, Musk said he didn’t understand it when Tesla’s price increases have sparked consumer discontent.
“No matter what model we model, we present it to consumers at today’s best price. The moment of heart-to-heart is the perfect time to join Tesla. In the above-mentioned “price protection” tweet, Tesla’s comments have a lot of meaning to persuade consumers to give up holding currency tokens, to seize the order. “It is estimated that the May Day long-term extended version of the refund volume is too much, the order is too few, the company is anxious. “In the above-mentioned Tesla issued a “guaranteed price” micro-blogging comment area, some netizens said.
After Tesla’s “price guarantee” announcement, Tesla’s sales launched a marketing campaign in the Circle of Friends, “officials declared: Long-term flight has no price adjustment plan.” Take advantage of the state subsidies now to the transition period, but also enjoy the subsidy 22,500 yuan, hurry to book a car. On the iron plate to lock in the subsidy. “But since Tesla’s statement only made a verbal commitment to price stability, there is no substantive price-guarantee strategy, and the meaning of the word “current” is not clear, many consumers are skeptical.”
“I’m not in a hurry, I can wait.” The above netizens said. “It’s ridiculous, and the standard battery (version) was the same before. Another netizen said. In addition, Tesla is also considered to have “no silver here three hundred and two” suspected, “so that the feeling really is to adjust the price”, “meaning: not to reduce the price now, will be in the future.” Netizens have speculated.
(Image Source: Screenshot)
In fact, since Tesla opened sales in China, prices have been adjusted repeatedly, and the opaque practices held by information such as preferential policies for car purchases, the pace of new models, and the configuration of self-driving cars have been repeatedly dissatisfied with consumers, and even car owners have gone to defend their rights with leeks. Public information shows that this has caused some consumers to lose their affection for Tesla, but there are still more consumers shouting “genuine”. Tesla’s official WeChat Public on May 1 release of the standard battery price reduction article reading amounted to 100,000 plus, the comment area “special powder” message frequently: “have been photographed, please ship as soon as possible”, “no, I show off, place an order …”
Tesla’s domestic development seems to be moving faster than expected. Since the opening of domestic deliveries at the Shanghai plant on January 7 this year, the Tesla Model 3 sold 18,586 vehicles in the first quarter of this year, ranking first among new car makers, even surpassing the sum of the last nine models, such as ES6, Ideal ONE and Xiaopeng G3. For the first quarter, Tesla’s global sales were 103,000 and 884,000, respectively, with Model 3 and Model Y delivering 762,000 vehicles, Model S and Model X totaling 122,000 units, and China accounting for 21% of Tesla’s global sales.
Tesla also benefited from its first-quarter results on April 30, with first-quarter revenue of $5.985 billion (about 42.3 billion yuan), up 32 percent from a year earlier, and net profit attributable to ordinary shareholders of $16 million (about 113 million yuan), compared with a loss of $702 million (about 4,967 million yuan) a year earlier, and a combined gross margin of 20.6 percent, up 8 percent year-on-year. Musk said it was the first time Tesla had posted revenue growth in the first quarter. Tesla’s shares soared more than 10 percent on the day after the results.
The Chinese market will continue to be a strong growth driver for Tesla. Tesla said the cost of the Model 3, which was made in Shanghai in the first quarter, was already lower than in Fremont, and there was still room for further reductions. At present, Tesla’s localization rate still has room to improve, Musk is expected to reach 100% by the end of the year, which also led to the domestic Model 3 after the price cut, the outside world is predicted that prices will still continue to fall further. Based on growth in China and growth in other markets around the world, Tesla has set a delivery target of 500,000 vehicles by 2020.
But in China, Tesla is facing a growing number of competitors to grab market share. “Tesla’s license is over, it’s our turn to get out, and the global ultra-safe smart new energy flagship sedan is worth looking forward to. “On May 1st, after the domestic Model 3 announced the price reduction, Zhao Changjiang, general manager of BYD Automobile Sales Co., Ltd., tweeted. In addition, Xiaopeng Automobile also recently released Xiaopeng P7, a high-profile board Model 3.