Elon Musk came to China on a private jet to thank the government and make a splash with the news that the show was a big hit. On January 7th, Tesla’s home-made Model 3 was officially delivered, and its localization was on track. It also means that its confrontation with the new forces of domestic car-building has moved from the media to reality. Earlier, on January 3, Tesla announced a price reduction for the domestic version of the Model 3, selling price from 3558 million yuan / vehicle to 3238 million yuan / vehicle, coupled with exemption from the purchase tax and new energy vehicle subsidies, Model 3 low-cost version of the price fell below the 300,000 yuan mark.
Since then, pictures of Tesla stores have been buzzing online.
So how popular is model 3? How crazy are the rich people about Tesla? We went to the Tesla store and looked at it, and it really could be described as a crowd.
Queue to book Model 3
Tesla has nine experience centers in Shanghai, and the Tesla Swire Experience Center is undoubtedly at the heart of the business district, regardless of location or commercial value.
Here adjacent to the Shanghai Metro Line 2 and Line 12, Yan’an viaduct and north-south elevated road are close at hand. It’s easy to get here by car or subway. Convenient transportation has also created an inch of land price, the annex of Jing’an new village housing prices in more than 105,000 yuan.
Apparently, Tesla’s huge rent of the store is also a big hit with the flow and purchasing power of the store.
Tesla Swire store is overcrowded
Users look at cars at Tesla’s Swire store
At the Swire Experience Center, almost all the seats are full, the in-store showcars are full of customers, and almost all of the sales consultants are busy answering questions and introducing products for customers.
In this cold winter in the auto motive industry, traditional car 4S stores have rarely had such a crowd scene. People in Tesla stores facing about 300,000 mid-range cars showed signs of lining up to “buy cabbage.”
“There’s been a lot more people coming to the store lately, especially this weekend. Sara, a sales consultant at Swire Stores, said.
Crowding is not just happening at Swire stores. At the Jinqiao store in Shanghai, a customer was also shocked by the traffic in the store. A year and a half ago, she and her son visited the store, where there were only two customers, except for the staff.
Whether from the traffic to the store or booking orders, just cut the price of the domestic Model 3 is undoubtedly a star product.
“It can sell 80 cars a day, more than 60 of them Model 3s, and a dozen Model S or Model Xs, ” says Sara.
The Model3 is also a best-selling model at the Jinqiao store in Shanghai. “Model3 is very big now, we can sell 1,000 units a day in our stores across the country, but we only produce 1,000 units a week, ” says Michael, a sales consultant there.
Tesla Golden Bridge Shop Scene
The oversupply is happening because of strong demand. One sales consultant said that after users place an order, they usually deliver the car within one quarter, and if they place an order today, the fastest delivery time will be at the end of March.
As far as the current booking situation is concerned, “the late day order, pick-up cycle may be delayed by a week.” So, in the store site, a lot of people on the spot order.
Under Tesla’s current rules, users only need to pay a $30,000 deposit and make up the final payment when they hand in. Before the official delivery, users can receive a returned deposit within 20 working days if they do not want it, and the user can choose not to refund the deposit and choose another time to pick up the car.
Model3 began accepting bookings a year and a half ago and has accumulated a large number of orders to be delivered. But according to sales consultants, most of them are not unsubscribed.
Why are users snapping up Model3? In the eyes of a sales consultant, the key is cost-effective.
According to the sales consultant, a low-priced Model3 sold for 323,800 yuan, less 10% of the purchase tax (about 32,000), plus a government subsidy of 24,750 yuan per vehicle, the car to the hand price is 299,000 yuan, plus insurance premiums of 7000-8000 yuan, a total of not more than 310,000. For Shanghai users, the price includes a Shanghai license plate.
At present, Shanghai’s latest license plate auction price is 896,000 yuan. For users who would have wanted to buy about 200,000 yuan of models and take the Shanghai brand, the equivalent of spending the same budget, you can buy a Tesla Model 3 with a Shanghai brand.
“Normal no Shanghai brand of the family, buy this car landing only more than 300,000, if the ordinary brand gasoline B-class car plus license plate and Tesla is similar, but the brand is a lot worse” said a consumer, this is why he considered the Model 3 reason, this car is the target of the Mercedes c-series and BMW 3 Series, But after the subsidy actually pay the price of the ordinary B-class car, very tempting.
Subsidies that are gradually receding have become a driving force behind the order placing by users. According to the rules of previous years, every February, the relevant departments will introduce a new car purchase subsidy policy. From the trend, the trend of subsidy retreat is obvious, and now it is stuck between the introduction of old and new subsidies, if missed subsidies, means that the purchase of more money.
This also serves as a reason for sales consultants to persuade users to place orders as soon as possible, “the general trend is that the later you book, the less you may get a subsidy.” The sooner you order, the more you have the right to choose.”
In Sara’s view, the best-selling version of the domestic Model 3 is also related to its price advantage over the imported version. The domestic version of the Model 3 is slightly lower than the imported version on the range, with the former with a range of 445km and the latter 590km. But from the price point of view, after enjoying the subsidy, the domestic Model 3’s price is 299,000, while the import edifgy price is 439,900, but can not enjoy the subsidy, the price difference of up to 140,000 yuan can completely make up for the slightly lower range of the shortcomings.
In addition to purchase tax and license plate cost savings, another core selling point that sales consultants emphasize to users is low after-sales maintenance and maintenance costs. 、
Sara said that the current Tesla car purchase does not provide additional decoration, in addition, compared to the ordinary fuel car 5000 or 10,000 kilometers of maintenance, Tesla maintenance cycle of 40,000 kilometers, each maintenance fee in 800-1000 yuan. The vehicle warranty is 4 years or 80,000 kilometers, the electric motor, battery is 8 years or 600,000 kilometers warranty, during which if the failure, the user does not have to pay to repair.
In addition, for the battery concerns, the sales consultant said that Model 3’s battery management per 100,000 kilometers decay edifying only 5%, 600,000 kilometers without fear of battery problems.
In terms of charging charges, users can spend 8000 yuan optional installation of charging piles. In addition, Tesla currently offers more than 40 super charging stations in Shanghai, which can travel 100 kilometers every 10 minutes and fill the battery with a battery in half an hour. And according to the price of 2 yuan once, full model 3 60-degree battery only needs 120 yuan, to meet the majority of users driving needs.
“Smart cars, Tesla’s in charge”
In the exchange with customers, Tesla store employees are filled with “no worries” confidence and a unique sense of superiority.
“We’re not selling, we don’t sell, you have any questions to ask me, no problem booking on it, I don’t want to come to you because there are too many people.” Michael, a sales consultant, said.
It is understood that Tesla’s sales consultants do not need push customers to place orders, because they are paid a fixed salary, the sale of the car did not have a commission.
“Of course a bad store is likely, after all, performance appraisal is still needed, but everyone in our store is over the standard, ” says one sales consultant.
To keep them, Tesla has also offered options to China’s top-line sales consultants. However, it will take up to four years to gradually cash out. “When I joined, the stock was over 200 (dollars) and now it’s almost 500, ” says one shop assistant.
So the store sits on Tesla’s share price, too. It’s just that some people don’t have much hope, after all, it’s a long time for them to stay for four years, “four years later.”
However, their conversations with customers are full of pride and even superiority.
“We’re not going to be compared to others now because the direction is different, ” says one sales consultant. ” Smart cars, Tesla says it.”
There are also sales consultants to customers that the current smart car, only “Tesla” and “other” two brands;
“In 2020, times are changing,” a sales consultant told customers, “Like Nokia and smartphones, are you buying a Tesla or a traditional car now?”
Tesla’s localization not only affected the C-side consumer’s decision to buy a car, for the capital market and the entire new energy vehicle industry has brought a sustained shock wave.
Tesla’s stock continued to rise at a high level after its recent earnings report showed that the company’s index esset was at a record high and better than market expectations. On January 8th Tesla’s shares rose to $492.14, up more than 30 per cent from a month earlier.
As of the close of trading on January 10, Tesla’s total market capitalisation was $86.184 billion, surpassing the total market capitalisation of gm($49.507 billion) and Ford Motor Co ($36.675 billion).
At home, Tesla’s supply chain concept stocks soared on January 7th, with the first delivery of the domestic Model 3 to 10 social users and Musk’s announcement that it would launch model Y’s domestic program, with the Tesla index up more than 20 percent in the past month.
Among them, involved in the Tesla concept of Asahi shares, Wynn shares, Tianqi lithium industry, LiFeng lithium industry and other stocks in recent times have ushered in a big rise.
According to Tesla’s Shanghai plant, the current domestic production rate of The Chinese-made Model 3 is about 30%, and the price of the localization rate will rise to 100% by the end of 2020. In addition, with the shanghai plant launched Model Y domestic production, the domestic Tesla supply chain enterprises will usher in more opportunities.
It is understood that the current core suppliers of Tesla by Japan, Europe and the United States manufacturers, such as Sumitomo Japan to provide positive materials and diaphragms, calendar to provide negative materials, electrolytes produced by Mitsubishi.
And with the increase of the rate of localization, domestic manufacturers are expected to replace foreign investment. At present, the domestic Tesla and other window glass selection uses Fuyao glass.
Several brokerages said that Tesla’s domestication will bring greater market space for the domestic new energy vehicle industry.
Shen Wanhongyuan Securities estimates that, assuming that Tesla achieves 300,000 vehicles in 2021, the value of a bicycle is 300,000 yuan, it is expected that batteries, materials, high-voltage DC relays, thermal management system and other links are expected to bring more than 40 billion yuan market space.
But Tesla’s moves may not be good news for its domestic competitors for new energy vehicles, such as NIO.
NIO’s shares fell more than 11 percent on January 7th, when the first delivery of the domestic Model 3. On January 11th Li Bin, chairman of NIO Automotive, responded to NIO’s response to Tesla’s price cuts, saying THAT NIO would not go down, but would do better in the future.
Brokers have analyzed that with Tesla’s in-depth localization, model 3 has room to continue to reduce prices. Tesla’s domestic Model 3 has a maximum of 27-34 percent of the price reduction after adopting a domestic supply chain, according to a new research report by Societe Generale.
This means that the Price of the Model 3 could be as high as about $250,000. The bigger challenge for NIOs may be to come.