Original title: Tesla joins the trillion-dollar market capitalization club Shanghai R&D center to enhance China’s auto industry chain
New energy vehicles have become the general trend in the development of the global automotive industry. Boosted by multiple positive factors, the US stock market closed on Monday. Tesla’s share price exceeded $1,000, and the market value reached the $1 trillion mark for the first time. The value of Musk’s holdings of Tesla’s stock also soared to $230 billion. He also stood. Steady the top of the list of the world‘s richest people.
Tesla CEO Elon Musk responded to the soaring market value on social media. He wrote: “It seems that the changes in market value are surprising. The problem Tesla wants to solve is more about how to increase mass production, rather than solving the problem of demand.”
Significant increase in localization rate
However, Tesla is also facing challenges in the automotive supply chain and pressure on raw material costs. On Saturday, Tesla announced that the long-range version of the Model S and Model X models will increase by $5,000, and the long-range version of Model Y and the upgraded version of the standard model 3 will increase by $2,000.
Morgan Stanley analyst Adam Jonas raised Tesla’s price target from $900 to $1,200 per share on Sunday. According to the latest data released by research institute Jato Dynamics on Monday, Tesla’s Model 3 electric vehicle became the number one pure electric vehicle model in Europe in terms of new car sales in September.
On Monday local time, the highly anticipated Tesla Shanghai R&D and Innovation Center and the Tesla Shanghai Super Factory Data Center were completed in Lingang. The Shanghai R&D Center is also expected to become a comprehensive R&D center on the same scale as Tesla’s U.S. R&D center, marking the overall advancement of Tesla’s China localization strategy, and will also drive the overall development of China’s electric vehicle industry chain ecology, and more in the future Tesla’s suppliers will start in-depth cooperation with Tesla from the research and development stage.
The production capacity of Tesla’s Shanghai Gigafactory is increasing significantly, which benefits from the rapid development of China’s local supply chain. At present, Tesla’s localization rate is close to 90%. Domestic companies including Ningde Times, the world‘s largest lithium battery manufacturer, are Tesla’s suppliers.
Dr. Yang Xiaoming, president of Tesla connector supplier Abofu Asia Pacific, told CBN reporters: “The entire automotive industry is undergoing profound changes, which forces the automotive supply chain to keep up with the speed of customer transformation and use traditional methods. Growth can no longer meet customer requirements.”
He believes that the development of a series of emerging electric vehicle companies such as Tesla has changed the relationship between the traditional supply chain and automakers. “How do we cooperate with electric vehicle manufacturers in the early stages of research and development? The key to the system is to cooperate with the development of its digitization and business model, not just to provide a product.” Yang Xiaoming told the CBN reporter.
Suppliers accelerate digital transformation
With the increase of Tesla’s localization rate in China in terms of key batteries and other components, the output of Tesla’s Shanghai Supertech electric vehicle is greatly increasing. Producing electric vehicles in China will help reduce Tesla’s manufacturing costs. This economic advantage will have a lasting impact on Tesla and make China an “export center” for Tesla.
Yang Xiaoming said that Tesla’s requirements for localization have far exceeded previous industry expectations. “This must require us to increase our R&D and innovation capabilities in China, and at the same time increase the speed in refined production.” Yang Xiaoming told a reporter from China Business News. “The entire automotive and industrial world is undergoing digital transformation, and we have been emphasizing The importance of digitization for the transformation of the automotive industry.”
China is also an important production and research and development base of Abofu. In order to improve production efficiency, Anbofu recently upgraded its connector intelligent chemical factory in Anting, Shanghai.
However, with the upgrading of autonomous driving and intelligent network technology, the generation and circulation of massive amounts of data has become the “new normal” in the industry. The digital transformation of the automotive industry has also brought about the problems of data security and user privacy protection in the intelligent network connection.
To this end, Tesla has completed the relevant approval and filing requirements for data centers in China, and built the Tesla Super Factory Shanghai data center to store data on Chinese operations such as factory production. “With the rapid development of autonomous driving, vehicle data security is particularly prominent. We believe it is necessary to take technical measures to eliminate public concerns.” Musk said at a recent new energy vehicle conference in China.
The development of autonomous driving technology also poses new challenges to industry regulation. On Monday, Tesla’s autonomous driving faces a new round of review pressure from US regulators. The National Transportation Safety Board (NTSB) asked him in a letter to Musk why Tesla still launched the so-called “fully autonomous driving” software without answering questions about the safety of the autonomous driving system.
In August of this year, the National Highway Traffic Safety Administration (NHTSA) formally launched an investigation into Tesla’s AutoPilot, an assisted driving system, involving 765,000 Tesla electric vehicles in the United States. Regulators believe that Tesla is testing autonomous driving functions on public roads, but the supervision and reporting of autonomous driving still does not meet the requirements.
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