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Text/Yunzhong
Source: Smart Car Reference (ID: AI4Auto)
Tesla dropped the price again.
After the latest official adjustment, the upgraded version of the Tesla Model 3 standard battery life was adjusted to 235,900 yuan (after subsidies), which cut 15,000 yuan in a single blow.
“Numb.”
A Tesla owner commented after seeing the news.
This is because since Tesla started the manufacturing process in China, it has taken the initiative to cut prices from the initial 355,800 yuan, and finally fell to 235,900 yuan today.
In less than 2 years, it has dropped by as much as 119,900.
And Tesla owners, who were initially angry and puzzled and laughed at “leeks”, are now numb.
Not only because the frequent price cuts educate car owners, but also because this is not the end.
To what extent Tesla will drop, maybe only Musk knows.
A brief history of Tesla’s active price cuts
As Tesla’s main volume model, Model 3 has been dubbed the “grocery car” from the day it was launched.
But when it first entered China at the end of 2018, the highest-priced high-performance all-wheel drive version was once priced as high as 698,000 yuan.
In October 2019, the Shanghai factory was ready, the production and delivery of “domestic” Tesla started, and the model 3 standard battery life upgraded version, the Chinese price dropped to 355,800 yuan.
In 2020, the price of Tesla Model 3 will be cut even more. After many price cuts, the price has fallen below the 300,000 yuan threshold.
This also enters the “target” category of the New Energy Subsidy New Deal.
Many people inside and outside the industry believe that Tesla is just to meet the subsidy standards.
But soon, in October 2020, the price of the upgraded version of the domestic Model 3 standard battery life was reduced again, and the price was adjusted to 249,900 yuan.
Within one year of 2020 alone, Tesla has cut the price of this model by 80,000 yuan.
After the party continues to win, the owners of the vehicles that have been delivered are puzzled, and the owners of the vehicles that have placed orders are angry.
Of course, Tesla’s price cut is not for which model, but as long as “Made in China” is turned on, price cuts are a major trend.
For example, Model Y made in China.
On New Year’s Day of 2021, the price will be reduced by 148,100 yuan as soon as the order is opened, and the Model Y long-life version will start at 339,900 yuan.
The model Y high-performance version has a price cut of 165,100 yuan to 369,900 yuan.
There is no longer a significant price gap between the Model Y after the price reduction, and even the Model 3 of individual versions.
Just recently, the domestically produced Model Y standard version was launched, priced at 276,000 yuan. This price is 71,900 yuan lower than the long-life version of Model Y previously listed.
Although there are differences in battery types and versions, they are still regarded as a consistent way to reduce prices.
So the question is coming-
Why does Tesla keep cutting prices?
There are three main reasons.
The first is that there is room for price reduction.
Especially after local manufacturing, Tesla has greatly reduced costs in terms of supply chain, production, transportation and taxes, and there is room for price reductions.
After analysis by many securities companies, they all believe that China’s industrial chain advantages provide a sufficient basis for Tesla to reduce prices, and there should be room for continued decline in the prices of Model 3 and Model Y. Model 3 is expected to be around 200,000, and Model Y should be about 5%-10% more expensive than Model 3.
And because of the adjustment of China’s new energy subsidy policy, Tesla will reduce prices accordingly to further increase sales in the largest consumer market.
The second is the demand for price reduction.
It is mainly the competitive situation formed in the Chinese market.
If Tesla is mainly competing with “fuel vehicles” in other areas of the world, then in China, it has to compete with other electric vehicles.
In the past two years, perhaps only new forces in car-making were oppressing the cost-effectiveness. Now BYD, Great Wall, Geely and SAIC and other traditional powerhouses have begun to deploy large forces in the new energy market.
If Tesla does not cut prices, price competitiveness cannot be said to be insignificant.
In other words, it is the oppression of Chinese car companies that makes Tesla, known for its “after-sales arrogance”, remain in awe before the sale.
Finally, the most critical is the business model.
Isn’t Tesla’s business model to sell cars to make profits?
Yes, but not all.
Because Tesla is different, from the very beginning, Musk has firmly believed in——
The car is just a “tool” for accelerating sustainable energy conversion and autonomous driving.
In the words that are more familiar to the Chinese people: making a car without making money is just making friends.
After this “friend” is handed in, where does the profit come from?
software.
More precisely, it is autonomous driving.
Moreover, only services such as autonomous driving have the same long-tail revenue value as Internet subscriptions-not just selling cars is just a one-shot deal.
This can also understand the other two routes of Tesla:
One is the autonomous driving route. Adhere to the camera’s pure vision solution-lower cost and no difference in vehicle coverage.
The second is the FSD subscription model. Beginning in June, Tesla began to test the water FSD from the one-off price-the price of 64,000 in China-to a monthly subscription fee model, which is said to be US$199 in North America, which is equivalent to about 1,300 yuan.
In other words, in the future, FSD services will converge with the current business model of streaming media such as video and music, with monthly payments and a steady stream.
And also based on this business model, only the more cars are sold, the scale effect and long tail effect can appear.
So how can we sell more cars?
One hand cuts prices, the other hand prepares to launch cheaper models.
Judging from the current exposure, it is only a matter of time before Tesla launches a model of less than 200,000 yuan in China.
Even in the future, there may be further down to 100,000 yuan models.
After all, for Musk, the “car” is just a box, through which a steady stream of software services are provided and profits are made.
Cut the price of leeks, or not cut the price of leeks?
But in any case, Musk and Tesla’s grand mission vision is the same thing, and the individual impact on Tesla owners cannot be ignored.
Because of frequent price cuts, Tesla owners have been repeatedly ridiculed in the old car market environment that prides itself on “price increase”.
Later, Tesla owners simply laughed at themselves: Leek.
There are also car owners. The price of the ordered car has not been delivered, and the price has been changed and adjusted. The car has not been on the road, and it has spent more money for no reason…How can you not be angry in terms of changing positions?
However, under various ridicules and protests, Tesla remained unmoved by the price cut.
Even the will does not lie in China’s sub-rudder. Previously, Tesla China said that the price adjustment decision is directly issued and executed by the US headquarters, so the time and rhythm cannot be predicted.
Tesla has also emphasized that the price reduction is based on the mission and vision on the one hand, and on the other hand, due to the continuous reduction of supply chain costs, it is necessary to continuously reduce prices.
At first sight, this is an act of conscience and a manifestation of corporate responsibility.
But after careful consideration, there is another point:
Since Tesla can continue to cut prices as the cost of the supply chain decreases, how can other peers who do not cut prices feel comfortable?
If there is no price reduction, is it another form of cutting leeks?
The difference is that the old leeks are cut at a reduced price, and the new leeks are cut without a price cut.
(Disclaimer: This article only represents the views of the author, not the position of Sina.com.)