Tesla this "catfish", how many new energy car companies will stir up the desire to survive?

It seems that the volume of car owners defending their rights has overshadowed the official announcement of price cuts. All of a sudden, the news of the banner of the store was reported repeatedly, in the fermentation of public opinion, the price of Tesla "bloodletting" news, was known by many people who did not originally know. I can't help feeling that the cleverest form of "marketing" is nothing more than that. A million dollar start-up luxury, high-end, smart, new energy "luxury" suddenly slashed prices to levels that were controversial, confusing, and anxious enough. Earlier, it was said that the new energy market had entered a period of structural adjustment before it took off. Now, that's true. Price cuts "Yang Mou", "plot" This is the Tesla series of products into the Chinese market since the largest scale and extent of a price cut. Tesla has drastically increased its prices for all models, with the Model 3 falling between 26,000 yuan and 44,000 yuan, the Model S falling between 11,300 yuan and 277,500 yuan, and the Model X falling between 174,300 yuan and 341,100 yuan, with the Model X P100D falling by 341,100 yuan. For activist buyers, this is a price to inflame conflict and anger. But judging by Tesla's plans, everything seems to be working. On the face of it, at least, price cuts are what Tesla needs to cut costs and increase revenues. On March 1st Tesla said it would move all its sales worldwide online so customers might no longer be able to buy cars at the company's stores. According to Tesla, by transferring all sales to Online, it was able to cut the price of its cars by 6%, fulfilling an initial promise of $35, 000. Tesla reported revenues of $7.23 billion and a total profit of $139.5 million in the fourth quarter of 2018. It was the first time Tesla had posted two consecutive quarters of earnings since it went public in 2010. But Tesla posted a full-year loss of $1.018 billion in 2018. And, after two straight quarters of earnings, some analysts say Tesla is likely to fall back into the red again. Looking at the domestic market, Tesla's price cuts in China also seem justifiable. Revenue in China, Tesla's second-largest consumer market, fell 15.4 per cent year-on-year to $1.757bn in 2018, according to Tesla's annual report. In addition, tariff volatility in the context of trade frictions has led to price uncertainty and a wait-and-see attitude towards Tesla among domestic consumers, with sales of the Model 3 slumping 70 per cent at one point last October to just 211 units that month. Tesla's share of revenues in China is not commensurate with China's 50 per cent share of the global market for new-energy vehicles. In response to Tesla's "plunge" in prices, US media commented that the sudden and dramatic price changes could not be explained by the mere fact that car sales had been adjusted to online sales. So why don't Tess come slowly down the road? First of all, although China 's automobile consumption market has shrunk, it does not hinder its position as the world' s largest automobile consumption market, and the domestic new energy market segment as a whole is good. In addition, with today's New energy policy recession, part of the new domestic car-building forces responded to price increases. Tesla has reason to believe that this is the best time to seize China's new energy market. "Tesla's prices have fallen rapidly, winning over consumers through price measures and creating a squeeze. Especially in China after the U.S. Market became unavailable, Tesla has adopted a more aggressive pricing strategy." So says Cui Dongshu, secretary-general of the National Passenger Car Market Information Joint Committee. Second, the Model 3, which Tesla built in China, is seen as a "no-rival" product that relies on its own low-cost positioning and localisation advantages to drive sales in China. Tesla officials have said the Shanghai plant will begin assembly in 2019, but construction has only begun for two months, and it will normally take about two years at the earliest to build an automotive plant with four processes-stamping, welding, painting and final assembly-and news has emerged that Tesla's Shanghai superplant is slowing down. The Model 3 will take time to make domestically, and Tesla is reluctant to wait to see the market cake carved up. "Tesla has already hit the doorstep. At the current exchange rate, the domestic Model 3 will be sold directly to 250,000 to 270,000 yuan … The good times are coming to an end soon," said Li Xiang, CEO of Car and Home and founder of Automotive Home, in response to the challenge. Li Xiang also directly "bombarded" domestic automobile brands with fake endurance mileage, "seeing many leading domestic automobile brands, promoting electricity, When you start moving cars, you advertise your mileage at 60 clocks, or even stick fake mileage numbers right up your ass … let's not get carried away with all this publicity. " Even though Li Hsiang-hsiang, who chose to increase the power of the program, had some meaning of "watching the fire from the shore," he was still telling the truth. Compared with some domestic new energy car companies, Tesla in the brand, product strength advantages, I will not repeat here. Tesla owners told reporters: "Tesla actively downgraded to the next level of fighting." Tesla slashed prices, so many would-be owners of smart electric vehicles such as Weilai began to waver, after all, Tesla is the people's hearts of the high-end electric vehicles of choice, originally because the price of its prohibitive consumers, can now tiptoe to the tiptoe, domestic electric vehicle brands face great competitive pressure. In addition, the current domestic independent brand of electric vehicles generally priced between 100,000 yuan-300,000 yuan, which will be domestic Tesla civilian model Model 3 overlap. Of course, the current Tesla Model S, Model X even if the price drastically reduced, but the price of 700,000 or 800,000 people can not be reached on tiptoe. So, I think in the short run, Tesla is playing its price competitive advantage, in the long run, Tesla is more like a downward cycle in the car "bright muscle." For Tesla's price cuts, Weilai founder and chairman Li Bin said rival Tesla's sharp price cuts would hurt the brand, we will not cut prices. The relationship between price reduction and brand is open to question But it is worth noting that not every company can compete against prices as the auto industry enters a downward cycle. Along with the subsidy recession this year, domestic new energy car companies immediately raised prices. This is also reasonable, subsidies "weaning", and the vast majority of new car-building trend has not yet formed economies of scale, cost control is difficult, there is little choice but to raise prices. We noticed that the most aggressive price adjustment is the new car-building forces, and the deeper accumulation of older car companies such as BYD did not adjust prices. Gross vehicle profit margin, cash reserves, financing costs, turnover, brand premiums, and even marketing strategies based on different cycles … these are the pressure tests that companies face when they go down in the industry, and these are not yet the strengths of the new forces in car building. What's scary is Tesla's ability to raise capital, which raised $6.16 billion before it went public, $970 million for Weimar Motor Co. And $740 million for Xiaopeng Motor Co. Although the past 15 years have been "burning money", it has not shaken investor confidence. In the past few months, tech stocks have fallen sharply in the US stock market, with Tesla topping the list in terms of strength. In September, an analyst at Piper Jones, a Wall Street investment bank, said China was expected to be Tesla's biggest market in the future, given its performance in China. Piper Jones analyst Alexander Porter also reiterated his "overweight" rating on Tesla shares and predicted the company would prosper in the Chinese market. In addition, several bankers attending the previous local "two sessions" in Shanghai disclosed that Tesla is currently holding a silver-colored, silver-colored, Group form to seek bank loans, a number of domestic banking institutions are actively striving for, the current tender is still in progress, loan conditions have not yet been determined. The recognition of Tesla's high-quality assets in the capital markets is a testament to this. Conclusion The traditional car market downward, Beijing new energy indicators difficult to find, subsidies downhill enterprises through price relief, joint venture brands into the market. This is more of a "burst point" for Tesla, which now needs to rip open a hole in order to compete with joint-venture brands and domestic new-energy car companies in the future. The sudden "bloodletting" of prices is because not falling to this level is not enough to stimulate sales, and not stimulating sales is not enough "momentum." There is no need to be pessimistic about the potential threat to domestic new energy companies, as Tesla's price cuts are not close to disruptive mining markets, demand for high-end electric vehicles is not mainstream, and domestic new energy routes are complex, leaving open the question of whether pure electric or fuel cells will dominate the market in the future. Of course, the Tesla catfish has already won the national treatment, we can not be blindly optimistic. Companies that used to rely on subsidies are bound to be difficult to sustain. For the new car makers, in addition to facing the "game" of new energy routes and market competition, they also need to cultivate their financing capacity. Tesla's ability to "build cars without stopping and burn money without stopping" is a recognition in the capital markets that it is serious about building cars, not an explanation of whether it is simply profitable or not.