On the afternoon of January 7, Tesla CEO Elon Musk danced to the crowd at a factory in Shanghai’ Lingang. After twisting a few bodies, he seemed to be in high spirits, and then the music sounded, and he jumped for a full time, cheering under the stage and others starting to scream. This is a good one, and as the helm of Tesla, the pioneering brand of electric cars, he is happy to show others what he is good at and how to mobilize the emotions of others.
Not long ago, on January 3rd, Tesla announced a price reduction for the domestic Model 3, coupled with subsidies for new energy vehicles, and the domestic Model 3 sold for 300,000 yuan, suddenly detonating the market.
Domestic Model 3 price reduction is expected, as early as last May when the first price was announced, the industry will expect that the initial announcement of the price will certainly provide space for subsequent price adjustment. In fact, price adjustments are exactly what Mr. Musk and his team often use to stimulate demand.
Past deliveries have also shown that this approach is feasible, and this time it seems to be no exception. 21st century economic report reporters recently visited some of the Shanghai area Tesla line stores, many sales staff said that after the announcement of the price adjustment Model 3 orders will be “exploded”, these days in-store queues of test drivers far more than usual, to the weekend even received no more.
How hot is the domestic Model 3? Tesla officials have previously said the Model 3 is the production of how much will be delivered, completely in short supply. And offline sales staff said that the domestic Model 3 is now a daily booking of more than 1000 vehicles, “if the day later orders, you will pick up a week later.”
Tesla has raised its price “slaughter knife” to the Chinese market. After domestic production, Tesla can not only further control costs at the supply chain level, but also enjoy subsidies and other preferential policies granted by the Chinese government, the advantages of the accumulation of advantages.
It’s worth noting that Tesla hasn’t stopped expanding. On January 7th, Tesla held its first mass-owner delivery ceremony and model Y’s domestic project launch in Shanghai, which meant that the domestic Model 3 was fully delivered, while the Model Y, another “walking volume” model, was accelerating.
Home-made Model 3 day sales of thousands of vehicles?
On January 3, Tesla announced that the domestic Model 3 will be sold from 355,800 yuan to 323,800 yuan. Due to the 2475 million yuan new energy vehicle subsidy, the actual starting price of the model fell to 299.05 million yuan.
After the price cut, Model 3 ushered in a sales boom. 21st century economic reportervisited several Shanghai stores, even on weekdays, there are many consumers came to consult Model 3 related situation. Among them, a Tesla Experience Center in Pudong New Area told reporters that each guide in the store can now receive an average of 20-30 orders a day, the entire store average daily orders of more than 100.
A sales person said that the current domestic Model 3 orders have reached 1200 vehicles a day, if you like this model, as soon as possible, because if “one day late”, it will be “a week late.”
Another salesperson expressed a similar view: the national booking is more than a thousand cars a day, and now the production beat in Shanghai factory is a thousand vehicles a week, so if the order is later, it may be a week late to pick up the car. She also said that the current domestic Model 3 cumulative orders have been “tens of thousands.”
Real order situation is difficult to confirm, on the one hand to create a situation in short supply is the basic marketing approach, on the other hand, in Tesla’s sales model, the binding force is very weak, sales staff told reporters, “even if it is the afternoon pick-up, the morning can still be unsubscribed.”
However, from the delivery date, the domestic Model 3 is still a hit. Several stores gave different answers about vehicle delivery times, but the cyclewast. Some stores said that the same day orders, the end of February can pick up cars, but also stores said that the beginning of March can only pick up cars.
Pushing back from delivery times, the domestic Model 3 currently sells at least a few thousand units. Of course, the lead time is also largely related to the configuration chosen, with one salesperson saying that if you book 19-inch wheels and the body is blue or grey, you can pick up the car by January.
Delivery dates are a sensitive time that, in addition to reflecting the volume of orders, affects the amount of subsidies that can actually be received. Another salesperson said, “There is no guarantee that you will get the subsidy by placing an order now.” “Based on past experience, the relevant departments will issue the new energy vehicle subsidy policy for the year in March or May (usually the first half of the year), after which the vehicles delivered will be subject to the new subsidy standards.”
Fast to the Chinese market
Pushing the starting price below 300,000 yuan, Tesla staged a wave of “aggressive attacks”: in addition to the price of the vehicle itself, Tesla has made a number of more pro-people adjustments to its options, such as lowering the price of 19-inch sports wheels, which had previously sold for $142,000, to $6,000.
More importantly, Tesla’s price advantage lies not only in its own strategy, but also in its post-production policy support in China. In addition to the domestic Model 3 enjoy new energy vehicle subsidies, Tesla models are also allowed to exempt from vehicle purchase tax, enjoy the “national” treatment, creating a precedent for non-domestic new energy vehicle companies.
The purchase tax is calculated on the overall price basis, which means that Chinese consumers will no longer have to pay an additional 10 percent for Tesla,’ which is the equivalent of directly helping Tesla to “kill the knife” to conventional fuel vehicles.
Tesla’s offensive will be even more aggressive as model Y’s domestic project progresses.
The Model Y is Tesla’s second SUV after the Model X, which follows the Model 3 and will be introduced in china. Recently, it was announced that Model Y would be produced at its Shanghai plant this summer, but Musk, who attended the launch of model Y’s home-grown project, did not specify a timeline.
“In Musk’s style, it’s an hour early. “An industry insider told the 21st Century Economic Report that the key is that Tesla is fully prepared to “do a big job” in the Chinese market, which will have a huge impact on China’s new energy vehicle market and industrial chain.
On the one hand, China’s new electric car brand, similar to Tesla’s, may accelerate its reshuffle, and on the other hand, the entire traditional automotive industry will accelerate its transformation. “For example, there have been predictions that the new force slain will have two or three left in five years, and Tesla will have four years to change. Cao He, an auto industry analyst, told the 21st Century Economic Report.
In fact, Shanghai’s aggressive introduction of Tesla’s manufacturing program, in addition to showing an open-door attitude, is also intended to use Tesla to cultivate a more complete and mature new energy vehicle industry chain. As a result, the a-share-related industrial chain’s share price rose several waves along with Tesla across the ocean after Model 3 was made in china.
There is a view that Tesla, as the catfish of the electric car industry, is indeed expected to drive change in the auto industry, but its impact on the industry is more about driving, not “slaughter”.