Will the “hard-core” Tesla EC6 be a profitable car?

The U.S. car, which had refused to be a “Chinese Tesla”, began to take the initiative to target Tesla. On December 28th, Ulsi officially released its third mass-produced model, the coupe SUV EC6. The model, thought to be the Azure Killer, will be the standard Tesla Model Y. Industry insiders said that after the introduction of the ES8 and ES6 vehicles, Weilai automobile’s high-end electric car brand image has been established. Next, Verizon, like Tesla, should launch a more competitive vehicle to get rid of losses.

Third production vehicle

Beijing Business Daily reporter from the relevant person in charge of the relevant person was informed that the Ec6 positioning SUV, from now on to accept reservations, is expected to be announced in July 2020 prices and configuration, September to start delivery. In addition, Alai also released a 100 kWh liquid-cooled thermostatic battery pack and 20 kW home DC charging pile.

It is understood that the Ullai EC6 will launch two versions of the model, Among them, the sports version of the 100 km acceleration time of 5.6 seconds, 70 kWh battery version of the NEDC range of 425 km, equipped with 100 kWh battery version of the NEDC maximum range of 605 km; The 100 kWh battery version of the NEDC has a maximum range of 615 km.

In response to a price for the EC6 model, Li Bin, founder, chairman and CEO of Verizon, said Tesla expects to launch model Y in 2020, and the EC6 model is model Y. “We don’t announce the price, after all, the price of the Tesla Model Y hasn’t been announced, and we’re going to give ourselves a way back.” He said.

It is worth noting that in parallel with the launch of the Ullai EC6 model, It also released a new ES8 model, which is available in six-seater and seven-seater versions, with a pre-subsidy price of 468,000 yuan. Users can book through the Allied APP and Ullai websites, and the first vehicles are expected to start delivering in April 2020.

As one of the new forces of car construction, Weilai has launched three SUV models so far, the first model Ofe IS8 started delivery in June 2018, and the second model, the Velai ES6, started delivery in June 2019.

As one of the new forces of mass-produced models, Weilai also leads its competitors in deliveries. Data show that in the first 11 months of this year, Weilai car delivery volume of 173,000 vehicles, the first new force car companies to pped the list. This year, however, the target for deliveries is 40,000 vehicles, with a completion rate of only 43.38 per cent.

Performance continues to under pressure

Ulsihas’s performance pressure is greater than expected. The results showed that in the second quarter of this year, The revenue of Weilai was RMB1.508 billion, down 7.5% YoY, while the net profit attributable to shareholders was RMB3.285 billion, an increase of 25.2% Month-on-Month, which was higher than the market expectations of a loss of RMB2,944 million. In the second quarter of this year, the gross margin loss on Weiri auto sales widened to 24.1 per cent, compared with 7.2 per cent in the first quarter.

Jia Xinguang, an auto industry analyst, believes that The losses come from three main sources, one is the loss of selling cars, the higher the cost, the more losses to sell;

Since the beginning of this year, in order to optimize the cost structure, Ulsi continued to lay off workers. In April, It announced that it would cut 3 per cent of its workforce and limit its total to 9,500, and in August, It again announced that it would cut about 1,200 jobs by the end of September, mainly in the human resources, legal, financial and other operational support sectors.

In addition to job cuts, It is also cutting costs through additional restructuring and splitting up some non-core businesses. In the new season of the Formula One World Championship series at the FIA (2.72, 0.01, 0.37%), The company is introducing a new strategic investor in the team, Lisheng Racing, which plans to switch from a direct all-in-one model to a sponsorship model, with more money invested in its core business.

Despite the “shrinking”, but the second half of this year’s performance is still facing considerable pressure. Previously, The company had forecast a gross margin of -6% in the third quarter of this year, with deliveries of between 4200-4400 units, an increase of 18.2% to 23.8% month-on-month, and an estimated total revenue of RMB1.593 billion-1663 million, an increase of 5.6%-10.3% month-on-month. The fourth quarter is -10%, and the gross margin for the whole year will remain negative.

How far is the profit?

“Staff cuts and business streamlining can only be used as a cure.” “Economist Song Qinghui believes that from the financial results, the biggest problem facing The Real performance is that the gross margin of sales is too low, there is a more and more the problem of selling more and more loss. To get out of the losses, It will need to reduce the cost of building cars and launch more civilian-oriented vehicles like the Tesla Model 3.

Tesla’s Model Y is Tesla’s second civilian model, after the Model 3, as the benchmark model for the third mass-produced EC6. Over the past two years, Tesla has made a number of successful quarterly profits thanks to rapid sales of model models.

In terms of battery life, the Ulai EC6 model NEDC with 100 kWh battery has a range of up to 605 km, while the Tesla Model Y dual-wheel drive long-range, high-performance version, rear-wheel drive long-range NEDC range is 505 km, 480 km and 540 km, respectively. In terms of power, the Tesla Model Y accelerates slightly better than the Ec6. Among them, the Ec6 performance version of the 100 km acceleration time is 4.7 seconds, while the Tesla Model Y high-performance version of the 100 km acceleration time is only 3.7 seconds.

“The Ec6 and the Tesla Model Y have their own strengths in vehicle performance metrics, but Tesla’s brand strength is stronger than that of Verizon, and if the EC6 is to successfully grab the Model Y market, it may need to set a more attractive price for it.” Song Qinghui said.

However, while the EC6 will refer to Tesla’s Model Y pricing strategy, it is clear that It will not make much concession on price. “A lot of Chinese brands in the market of a hundred thousand yuan have done well, and we are not short of one, in the mainstream high-end market (300,000-500,000 yuan range) without Chinese brands, there must be someone to challenge, we will do this thing.” We will not make particularly cheap cars. Li Bin said that only by taking the mainstream high-end market this road, Ullai has a chance, if the low-end market, Ullai will be more difficult.

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