Author: Li Suwan
Original title: who can compete with “cost killer” Tesla
Tesla, with an annual sales volume of nearly 500000 vehicles, will undoubtedly take the title of global new energy vehicle sales champion in 2020. In the past year, Tesla has hit traditional car companies and other electric car companies hard. At the beginning of the new year, Tesla set off a new round of price reduction in China to seize the market. Tesla’s industrial chain has benefited. As of the press release on January 4, Xusheng shares, top group, Sanhua intelligent control and other stocks rose by the limit, and Ningde times, Huayu auto and other stocks also rose sharply.
Tesla has delivered 499550 electric vehicles in 2020. Although there is still a gap of 450 vehicles from the target of 500000 vehicles, Tesla CEO musk has regarded this achievement as the achievement of the target. As one of Tesla’s most powerful competitors, BYD is further widening its gap with Tesla since it was snatched by Tesla as the global sales champion of new energy vehicles in 2019. BYD, which has not yet released its report card for 2020, sold 160800 new energy vehicles from January to November last year, with little hope of catching up with Tesla in the last month. As Tesla further raises the “price butcher’s knife”, BYD will bear more pressure, and the two have a new round of competition.
Tesla announced its domestic model on New Year’s Day Y was officially listed and its price was significantly reduced. The decrease of more than 100000 yuan not only impacted the market of ABB (Audi, Benz and BMW), but also was lower than the price of traditional fuel vehicles of luxury brands such as Benz GLC, BMW X3 and Audi q5l. It also directly reached the price range of main models of pure electric vehicles of some independent brands. The price of pure electric SUVs such as Weilai ES6 and BYD Tang 4WD high-performance version gradually increased Close.
Coincidentally, on the same day, BYD officially released its brand new logo, realizing brand renewal and upgrading. This means that BYD is willing to link with users and partners with a more open attitude, jointly explore new business forms of automobile products and services in the intelligent era, and build new value automobile brands. In the face of Tesla’s “wolf nature”, BYD has to respond passively and speed up the promotion of brand power and sales volume.
With the help of domestic new energy subsidies and fast-growing market, BYD once led the sales of new energy vehicles in the global market. However, with the decline of new energy subsidies year by year and Tesla made in China, BYD’s original advantages are gradually lost. This year, China’s new energy vehicle subsidy policy has been finalized, and the relevant subsidy standard will be reduced by 20% on the basis of 2020. Further reducing costs, expanding scale and upgrading technology have become new tasks for new energy vehicle enterprises.
Why did Tesla cut its price sharply? Speeding up domestic production in China is one of the main reasons. By taking this opportunity, Tesla has not only reduced labor, sales and other costs, but also greatly reduced the cost of parts procurement. For example, the previous purchase of ternary lithium batteries from Panasonic has gradually expanded to purchase lithium iron phosphate batteries from Ningde times, which further creates more space for Tesla to reduce its price. In addition, software technologies such as Tesla over the air download technology (OTA) are leading the world, driving up sales and improving profitability to a certain extent. What’s more, Tesla’s direct selling model also helps it reduce its marketing costs significantly. Therefore, Tesla, the “cost killer”, has launched frequent price wars and expanded its scale effect by reducing prices, thus gaining a rapid share in the electric vehicle market. Some people in the industry even think that with Tesla entering the fast growth lane, there may be a model of free car delivery and profit by software upgrade one day.
Tesla is constantly subverting the auto industry. Last year, it replaced Toyota as the world’s highest market value auto company, and quickly left the market value of traditional auto companies such as Toyota far behind. This means that investors fully affirm the prospect of Tesla. However, will Tesla be invincible and loneliest in the future?
Although Tesla has temporarily gained a favorable position in the electric, intelligent and networked track, a new round of competition has just begun, and there are many variables. No matter in the domestic or global car market, the market share of electric vehicles is still in single digits, while some brands of fuel vehicles are still growing, and gradually defend the attack of electric vehicles through hybrid technology and other energy-saving technologies. At the same time, more and more powerful competitors are joining in the intelligent electric vehicle track, including traditional giants Toyota, Volkswagen and so on. Not long ago, Toyota Auto Body Co boss Akiotoyoda Tucao electric vehicle was overheated and make complaints about a thousand waves. There is no doubt that the rapid rise of Tesla and other electric vehicle enterprises is gradually posing a certain threat to the traditional automobile enterprises. However, there are differences in the industry on whether there will be a scene similar to Apple replacing Nokia in the future.
On the one hand, Tesla is not so easy to capture the city of traditional car giants in the short term; on the other hand, Volkswagen and Toyota are also speeding up the pace of electrification. For example, Toyota has advanced its plan of electric vehicles accounting for half of its sales from 2030 to 2025. These multinational auto giants are still one of Tesla’s strongest rivals for a long time. As for who will win in the next stop, it depends on the real intelligent electric vehicle technology reserves of these traditional giants, whether they can successfully complete the switch from fuel vehicles to electric vehicles, and whether Tesla can improve the quality as soon as possible and continue to maintain its leading position in technology.
In addition to the traditional multinational car giants, some domestic independent car companies are also likely to compete with Tesla or even overtake in the future. Electrification is the first half, and intellectualization is the second half. With the arrival of 5g era, automatic driving technology will accelerate, from single car intelligent driving to vehicle road coordination. China is supporting the development of intelligent vehicles from many aspects. Major automobile groups have increased efforts to develop high-end intelligent electric vehicles, and new forces such as Weilai and Xiaopeng are also growing rapidly. Many independent car companies are speeding up their cross-border integration with technology giants. In the future era of Internet of things, it will be more difficult for Tesla to keep its position as the leader of electric vehicles.
Author: Li Suwan