It’s a good story: Musk, the Iron Man who wants to change the world, almost planted in America! But it was saved by China. Not long ago, Musk will launch a mass delivery ceremony for the domestic Model 3 and the China Model Y project. Surprisingly, he suddenly threw off his suit and danced in a dance that caused the scene’s “loyal fans” to scream. The dance was not deliberately arranged.
In addition, Musk also specifically thanked the Shanghai government.
“I am very grateful to the Shanghai government, and in 2019 we have worked with the Shanghai government to create a miracle,” he said. He was even a little agitated, according to Tesla staff at the scene.
So what exactly does Tesla want to thank?
In 2018, Tesla is facing a huge crisis. Tesla, which lost another $785 million in the first quarter, faces a triple dilemma of lack of money, car and people. At the time, Tesla had $2.7 billion in cash. That’s not a small amount, as previously calculated, Tesla could burn $6,500 a minute, so Tesla’s cash will run out by the end of 2018.
Coupled with the financing, Wall Street seems to have lost faith in Tesla. Moody’s, the credit rating agency, rated Tesla’s credit as “junk”, while JPMorgan Also gave Tesla’s stock a “sell-down” recommendation.
That put Tesla on the brink of bankruptcy.
Peak circuit turn, Shanghai Tesla’s speed saved a life.
Iron Man catches “China Speed”
From January 7, 2019, the construction of Tesla’s Shanghai Super plant, to October 15 into the commissioning phase, to December 30, the first Tesla domestic Model 3 delivery, Tesla in 357 days, staged a scene of “China’s speed and national passion.”
The speed with which it is localised is truly amazing.
Time shuttled to the beginning of last year, the Tesla No. 3 Super Factory (Phase I) in Shanghai, China, the port industrial zone officially started construction. As the largest foreign manufacturing project in Shanghai’s history, the plant has four major manufacturing processes, including stamping, welding, coating and assembly, with a planned annual production capacity of 250,000 vehicles at the first phase of the plant.
Musk has publicly said that as Tesla’s first superfactory outside the U.S. mainland, he thinks the Shanghai Super plant’s 500,000-car-a-day production is only a medium-term goal, with a potential for more than 1 million vehicles in the long run, but he did not give a timetable.
Musk said he hopes to build Tesla plants on every continent in the world in the future, especially in China and Europe. In Musk’s view, Tesla’s overseas car sales face slow supply chain and rebates for economic reasons that could be improved by building local plants in overseas markets.
Now all this has been verified. Although the domestic Model 3 was delivered to only 15 Tesla employees, Tesla China staff revealed at the delivery ceremony: “More ‘Made in China’ will be delivered in January 2020.” “
On January 7, 2020, a year after the tesla’s Shanghai super plant broke ground, Musk is here again for the delivery ceremony of the Chinese-made Model 3.
Musk expressed his gratitude to Shanghai, saying ” It’s an amazing speed in Shanghai.”
Musk also announced that Tesla will continue to invest heavily in China to produce Model 3, Model Y and “future models.
In fact, for the market, China needs Tesla.
Whether Tesla or other international automakers build factories in China, they use local talent, supply chains, and some jobs.
Of course, the domestic need to represent the higher level of electric vehicles Tesla to enter the market, share China’s new energy vehicle market at the same time, quickly drive the entire industrial chain to accelerate development.
What’s more, Tesla’s advantages in building in China cannot be ignored.
On the one hand, Tesla’s plant in China can significantly reduce labor costs. On the other hand, local production in China will be exempt from some tariffs and reduce transport costs. In addition, industry insiders said that the expansion of production capacity in China will further play the advantages of scale, to level the overall research and development production costs.
A Tier 1 engineer said Tesla has the world’s most robust automotive supply chain system in china, with top parts suppliers such as Bosch, ZF, Delphi and Mainland around Shanghai, and the automotive industry is well equipped to provide stronger supply chain support.
To sum up 2019, it’s a perfect ending for Tesla.
First, in terms of sales, Tesla officially reported 112,000 Q4s in 2019 and 367,500 units for the full year, meeting its target of 36-40 million units at the start of the year.
Second, the domestic Model 3 is officially delivered. From the plant’s foundation on January 7, 2019, to the 10 o’clock delivery of new cars on December 30, Tesla took just 357 days.
On January 22nd Tesla’s market capitalisation exceeded $100bn for the first time. Tesla’s shares rose further in after-hours trading Tuesday, reaching $555 and giving it a market capitalisation of more than $100 billion, making it the first U.S. auto company with a market capitalisation of more than $100 billion, underscoring Wall Street’s confidence in the future of electric vehicles. The milestone comes less than a month after Tesla’s share price broke through the $420 mark.
In addition, recently, Tesla officially announced a price reduction of 32,000 domestic Model 3, including a subsidy of 2475 million, the first time the domestic Tesla fell below 300,000. There is no doubt that the Chinese market will continue to be a boost to Tesla’s business expansion.
Domestic Tesla delivery and price reduction, China’s new car-building forcepanic?
In retrospect, today’s Tesla is similar to the Apple that upended Nokia. Both need to “change” the world.
Just before Apple’s launch, the traditional handset industry was nearly stagnant. Before Tesla, the traditional car company’s production model changed very slowly, and consumers were far away from the car’s intelligence.
That year, Apple moved its production line to China, where it made its own money, and the local Chinese market built up the world’s most sophisticated consumer electronics industry chain. Industry insiders say Tesla’s build-up in China will not affect Tesla, but could send a shock wave to the auto industry as a whole.
So Tesla’s expansion into China will catalyze one result: accelerate the rapid arrival of smart electric cars.
In other words, Tesla’s most successful place is not how innovative technology it brings, but how it can be transformed into a world of smart cars as an “outsider”.
A big fish swim into China’s new energy car market, Model 3 after home will let NIO, Xiaopeng and other new domestic car-building forces feel a headache?
In May last year, after the model 3 domestic version of the sale price was announced, Xiaopeng Automobile founder and chairman He Xiaopeng quickly commented, “I think the Model 3 domestic version of 328,000 is uncompetitive, at least should be reduced by another 10,000 dollars.” It’s completely different now than it was five years ago, and Tesla’s battery advantages, intelligence differences are nothing compared to ours. “
But in the face of the main intelligent many new car-building forces, the Chinese market can be as expected to make Tesla money exist?
THE NIO IS ONE OF THE MOST SIMILAR TO TESLA AMONG ALL THE NEW CAR-BUILDING FORCES IN THE INDUSTRY. From the background of the founders (Musk and Li Bin both became famous in the Internet industry, completed the original accumulation, and invested in the car-making business) to the positioning of similar luxury brands of pure electric vehicles.
In addition, in the new force of car construction side, the most investors, industry people are optimistic about the NIO car. Of the hundreds of new car companies, NIO is the first to go on the market, the first to reach the scale of 10,000 units.
However, NIO’s financial report has been “unsightly”, with a loss of $9.6 billion in 2018. High losses put the NIO under enormous pressure. Building a car means burning money, and NIO is still struggling to find it.
Not only that, but Tesla’s home-grown production will have some impact on THE NIO. But as a new option outside the pure electric luxury brand, will the survival pressure be less?
A new car-building enterprise engineer told Lei Feng network, the domestic new energy host plant can also be born, now the domestic new energy vehicle market penetration rate is still very low, broad market is enough to accommodate the group.
On December 3, 2019, the Ministry of Industry and Information Technology issued a draft for comments on the “New Energy Vehicle Industry Development Plan (2021-2035),” indicating that China’s new electric vehicle sales will reach about 25% by 2025, an increase of 5% over the previous plan. But in the first 11 months of 2019, electric cars sold 1.043 million, compared with 2.338 million, or just 4.53 percent.
According to this form, the domestic electric vehicle car market will have to expand at least five times more than five times in the next five years.
In the face of such a large market, even a strong Tesla can not eat a mouthful.
Therefore, the search for differentiated competition, for domestic new energy vehicle enterprises, is the key to do not panic at the bottom of the heart. For example, Weima’s main consumer market is 100,000 yuan, and 300,000 yuan of domestic Model3 just formed a misplaced competition.
In addition, holding a group heating is not a response. For example, Xiaopeng and NIO are holding together, ready to share the charging pile, both sides can benefit.
For the traditional host factory, “hug” is also the best attitude to deal with industrial change. On December 23, 2019, SAIC and GAC announced through official channels that the two groups had signed a strategic cooperation framework agreement in Shanghai and reached a strategic cooperation agreement.
The transformation of the domestic automobile market from incremental to stock, coupled with the transformation and upgrading brought about by the new four, is the root cause of the “downhill decline” of the traditional automobile manufacturing industry. Therefore, in the face of many uncertainties in the future, hugging heating has become a common phenomenon in the industry.
Now, although Tesla’s domestic surge has disrupted the domestic new energy vehicle landscape, but to accelerate the industry reshuffle is not a bad thing. The survival of the natural lysing, those who attach importance to independent research and development, and technical strength of enterprises, will be in this reshuffle to become a new overlord is also a possibility.
Tesla’s “invisible” catfish effect
Tesla’s entry into China has had an impact on The chinese market’s existing car market.
First, in the automotive industry into the cold winter, for the entire Chinese car market industry chain injected a strong heart.
In the field of power battery systems, there are new Zeus, Polyfluoro, Kodali, Changying Precision, Dongshan Precision, Shanghai Electric Shares, Aresheng Electronics, Anjie Technology, Sanhua Zhicontrolled and other companies have a partnership with Tesla.
In the body system, interior and exterior decoration, structural parts, etc., with Tesla cooperation with Asahi shares, Changal shares, Tianqi model, Weitang Industry, Wynn shares, Wanfeng Owei, Dongliang shares, Fangzheng motor and other companies.
In the automotive electronics, car body electronics, there are Longletter Technology, four-dimensional map new, Dafu technology, are winning electronics, united electronics and other companies involved.
Tesla not only brought new life to the automotive industry chain, but also splashed the map market at the beginning of the year.
On January 17th Tesla tweeted a message on its official twitter account that Tesla’s map data service would be replaced with Baidu Maps, giving you a better driving experience on your way.
In fact, since its arrival in China in 2014, Tesla has been replacing its China navigation map provider, from four-dimensional to Tencent maps to Baidu maps. In just a few years, it has sparked a giant battle: Baidu, AutoNavi and Tencent’s glue war in the automotive sector.
Overall, new energy vehicles are the future of China’s automotive industry development direction, and Tesla’s strong intervention should be a “fish”, is expected to promote the development of domestic new energy vehicles, electric vehicles. In addition, the introduction of Tesla “into the room”, but also make domestic suppliers to become its service providers, of course, including map suppliers. Tesla, the iron man who wants to change the world, musk, whether the Chinese rocket can revive the local new energy vehicle market, as consumers, we wait and see.