On the afternoon of January 7th, Tesla CEO Elon Musk danced in the crowd of a factory in Lingang, Shanghai. After twisting his body a few times, he seemed unsatisfied, and then the music sounded, and he jumped for a full period, cheers from the audience, and some people started screaming.
This is very Musk. As the helm of Tesla, an electric vehicle pioneer brand, he is willing to show others what he likes and knows how to mobilize others’ emotions. Not long ago, on January 3, Tesla announced the price reduction of the domestic Model 3, coupled with the subsidy of new energy vehicles, the domestic Model 3 started selling at a price of 600,0000 $, which suddenly exploded the market.
The price reduction of the domestic Model 3 was expected. When the price was first announced in May last year, the industry expected that the initial announced price would definitely provide space for subsequent price adjustments. In fact, a price adjustment is exactly the way that Musk and his team, who are familiar with consumer psychology, 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 Business Herald recently visited some of Tesla’s offline stores in Shanghai. Many salespeople said that after the price adjustment was announced, Model 3 orders “exploded”. The number of people who have queued for test drives in the store these days is far more than usual. Reception could not even be reached at the weekend.
How hot is the domestic Model 3? Previous Tesla sources have said that the Model 3 is delivered as much as it is produced, which is in short supply. And offline sales staff said that domestic Model 3 now has more than 1,000 reservations per day, “If you place an order one day later, you will pick up the car one week later.”
Tesla has raised the price of a “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 provided by the Chinese government. The advantages are gradually increasing, and the advantages gradually become apparent.
It is worth mentioning that Tesla has not stopped the pace of expansion. On January 7th, Tesla held the first social car owner delivery ceremony and the launching ceremony of the Model Y domestic project in Shanghai, which means that at the same time that the domestic Model 3 has been fully delivered, another “traffic” model Model Y also Is accelerating.
Thousands of domestic Model 3 sold?
On January 3, Tesla announced that the starting price of the domestic Model 3 will be reduced from 355,800 $ to 323,800 $. As a result of subsidies of 24.75 million $ for new energy vehicles, the actual starting price of this model has dropped to 299.05 million $.
After the price cut, the Model 3 ushered in a wave of sales. 21st Century Business Herald visited several Shanghai stores. Even on weekdays, many consumers came to inquire about the Model 3. Among them, a person at a Tesla Experience Center in Pudong New District told reporters that each shop guide in the store can now receive an average of 20-30 orders per day, and the average number of orders per day in the entire store reaches more than 100.
A salesperson said that currently, orders for domestically produced Model 3 have reached 1,200 units per day. If you like this model, you should start as soon as possible, because if it is “one day late”, it will be “one week later”.
Another salesperson also expressed a similar point of view: Reservations across the country have averaged more than a thousand units a day, and now the production cycle of the Shanghai plant is a thousand units a week, so if you place an order one day later, you may really get a car one week later. She also said that the accumulated orders for domestic Model 3 have been “tens of thousands”.
It is difficult to confirm the actual order situation. On the one hand, creating a demand-supply scenario is the basic routine of marketing. On the other hand, under Tesla’s sales model, the deposit is very binding. Some sales staff told reporters, “Even if the car is raised in the afternoon, You can still cancel your deposit in the morning. “
However, from the delivery date, the popularity of domestic Model 3 is still evident. Regarding vehicle delivery time, several stores gave different answers, but the cycles were not short. Some stores said that when the order was placed on the same day, the car could be picked up at the end of February, and some stores said that they could only pick up the car in early March.
Pushing back from the delivery time, the current sales volume of domestic Model 3 is at least several thousand. Of course, the delivery cycle is also largely related to the selected configuration. A salesperson said that if the 19-inch wheels are ordered and the body is blue or gray, the car can be picked up a year ago (January).
The delivery date is a sensitive time. In addition to reflecting the order volume, it also affects the actual amount of subsidies available. Another salesperson said, “It is no longer guaranteed to get subsidies when placing orders.” Based on previous experience, relevant departments will issue new energy vehicle subsidy policies for the year in March or May (usually the first half). Vehicles delivered thereafter will follow the new subsidy standard.
Quickly break into the Chinese market
Pushing the starting price below 300,000 $, Tesla staged a wave of “aggressive offensive”: In addition to the price of the vehicle itself, Tesla has also made many more people-friendly adjustments to the optional configuration, such as The price of 19-inch sports wheels, which previously sold for 14,200 $, dropped to 6,000 $.
More importantly, Tesla’s price advantage not only lies in its own strategy, but also benefits from its policy support after production in China. In addition to the domestic Model 3 enjoying new energy vehicle subsidies, all Tesla models are also allowed to exempt vehicle purchase tax and enjoy “national” treatment, setting a precedent for non-domestic new energy vehicle companies.
The purchase tax is calculated on the basis of the overall selling price, which means that the actual cost of buying Tesla by Chinese consumers no longer needs to pay an additional 10%, which is equivalent to directly assisting Tesla to raise the price of “slaughter knife” to traditional fuel vehicles.
With the advancement of the Model Y domestic project, this offensive of Tesla will be even more rapid.
Model Y is the second SUV launched by Tesla after Model X. It follows the civilian route like Model 3 and will also be introduced in China. Recently, it was reported that Model Y will be produced at the Shanghai factory this summer, but Musk, who attended the launching ceremony of the Model Y domestic project, did not disclose the specific timeline.
“According to Musk’s style, it can be an hour earlier.” Some people in the industry told 21st Century Business Herald that the key is that Tesla is fully prepared to “do a big job” in the Chinese market, and this will have a huge impact on China’s new energy vehicle market and industrial chain.
On the one hand, new Chinese electric vehicle brands similar to Tesla may accelerate the reshuffle, on the other hand, the entire traditional automobile industry will also accelerate the transformation. “For example, there were predictions that there would be two or three new car-making forces within five years, and Tesla would have to be four years old.” Auto industry analyst Cao He told 21st Century Business Herald.
In fact, Shanghai has vigorously introduced Tesla’s manufacturing projects. In addition to showing an open attitude, it also intends to use Tesla to cultivate a more complete and mature new energy vehicle industry chain. Therefore, after the Model 3 was made in China, the stock price of the A-share related industry chain also rose with the waves of Tesla across the ocean.
Some people believe that Tesla, as a sturgeon in the electric vehicle industry, is indeed expected to drive changes in the automotive industry, but its impact on the industry is more driven than “slaughter.”
“(The future automotive industry) will definitely have a lot of changes. After all, the so-called new energy automotive industry has not taken shape. Technology, energy, materials, and usage patterns will all have revolutionary changes in the next 10-20 years. In particular, the original leaders in the automotive industry will also strengthen research and development and market investment, which also provides room for domestic enterprises. “Cao He said.