At the beginning of 2023, Tesla sent a wave of big price reductions, Model Y starting price dropped to 259,900, and the delivery time was shortened to 1-4 weeks; Model 3 broke through a record low with a price of 229,900.
Tesla's soaring new orders also caused strong dissatisfaction among old owners, and some netizens said: I originally called a friend to go to the Tesla store to defend his rights, but the friend did not resist the temptation to order one on the spot.
It is really ironic that rights protection outside the store and prosperous business in the store are really ironic. For the complaints of old owners, Tesla head Elon Musk said: When the price is raised, you are not allowed to make up the difference!
Price reduction is indeed the most direct and effective means to promote sales, and at the same time brings great pressure to competitors while old owners are unhappy. The price reduction tide has once again triggered the catfish effect, who will enter the finals to compete with Tesla in the global market? It seems that you have to carry this round of price war first!
Qianjie M5, Xiaopeng P7 followed down
Following the price of Tesla Model 3 dropped to 229,900, Xpeng also issued an announcement that from 14:00 on January 17, P5 dropped from 179,900 yuan to 156,900 yuan, P7 from 239,900 yuan to 209,900 yuan, and Xpeng G3i from 168,900 yuan to 148,900 yuan, with a price reduction of 2-36,000 yuan.
The same price of 229,900 yuan, for the first time, let the Xpeng P7 586G compete with Tesla Model 3 rear-wheel drive version at exactly the same price. At the same time, Xpeng provides subsidies to the first owners who order these three models within one year, and the vehicle warranty is extended to 10 years and 20,000 kilometers and 4 years of basic maintenance.
In response to Tesla's new round of price war, the M5 responded very quickly, with the price of the M5 EV series falling by 28,800 yuan and starting at 259,800 yuan; the M7 falling by 30,000 yuan to 289,800 yuan. It is worth mentioning that Qianjie also subsidizes 33,000 to 35,000 rights and interests for old car owners, including extending the warranty of the whole vehicle to 8 years/160,000 kilometers, giving away 120,000 points, and enjoying 2 years of basic maintenance for the M5.
In comparison, Qianjie and Xiaopeng take care of the feelings of the old car owners.
Xpeng, which strongly overtook NIO's ideal in 2021, experienced weak sales in 2022, with annual deliveries just exceeding 120,000 units. As the first brand created in Huawei's smart car mode, Qianjie has high hopes from Huawei. Since the official delivery in March 2022, the company has delivered more than 76,000 units in 2022.
Which other models may be reduced?
Tesla's round of price reduction spans the two price ranges of 20~300,000, and the affected brands and models are by no means more than Xiaopeng and Qianjie. In particular, the models that initially wanted to compete with Tesla through low price and high configuration now have to engage in hand-to-hand combat with Model 3 and Model Y.
Take the NIO ET5 as an example, ET5 and Model 3 are both mid-size cars, and the two cars with comparable comprehensive strength have changed due to Tesla's price reduction.
At present, the starting price of NIO ET5 is close to the Tesla Model 3 top-equipped price, which has a very obvious impact on the competitiveness of ET5. NIO is likely not to give up the fertile market of mid-size cars, and ET5 follow-up price reduction is a necessary means for self-protection and competition for the market.
On the Volkswagen side, according to the latest data released by the Volkswagen Group, sales of ID. series models in 2022 will be 143,100 units, doubling year-on-year. Although the Volkswagen iD. series has not reintegrated with Tesla much in terms of model positioning and price range, the impact is still not to be underestimated. Although Volkswagen has not yet released news of price reduction, it is believed that the next sales data will prompt the iD. series to carry out new countermeasures.
For BYD, which is popular in 2022, Tesla's price cut is very targeted at BYD's seal. In the same price range, it makes sense that the Han EV and Tang EV will be reduced in price as older models. As a more competent opponent of Tesla Model 3, Seal's starting price was originally lower than that of the Model 3 after the price cut. But it is not ruled out that Tesla may continue to reduce prices in the future, when the-for-tat confrontation between the two models is very unfavorable for the seal with great explosive potential.
BYD must take Tesla, a formidable competitor, seriously, and make a trade-off between ensuring profits or protecting sales. When BYD launched a price cut, it was a real devastating blow to those weak new energy brands in the domestic market.
All in all, the entanglement between car companies is a good thing for consumers, through the elimination mechanism of price war, not only can better quality and stronger brands be screened, but also enjoy more favorable prices.
What else do you think about the price reduction tide of new energy brands? Welcome to leave your opinion in the comment area!