At Gigafactory Investment Day in early March 2023, Tesla chief engineer Lars Moravy said that he is "striving to reduce the production cost of the next generation model by 50%, and the production cost is expected to be half that of the current Model 3 or Model Y." Tesla CEO Elon Musk also claimed that the cost can be reduced. Just this past year in 2022, Tesla ranked first in the world in terms of pure electric vehicle deliveries with 1.31 million units.
Tesla Shanghai Gigafactory
"Madman" Musk did what he said, and as soon as 2023 began, Tesla cut prices sharply. Among them, the starting price of the new Tesla Model 3 bicycle dropped from 265,900 yuan to 229,900 yuan, a direct decrease of 36,000 yuan; the starting price of Tesla Model Y bicycle dropped from 288,900 yuan to 259,900 yuan, a decrease of 29,000 yuan. The price reduction directly led to a rapid increase in sales. In January 2023, Tesla sold 66,051 units, up 10.3% year-on-year and 118.4% month-on-month.
Tesla supercar roadster
Tesla's rising sales have made it more difficult for domestic new energy vehicle companies to survive, and public data shows that in the third quarter of 2022, NIO's net loss was 4.11 billion yuan, and the loss of single vehicles expanded to 130,000 yuan. According to incomplete statistics, the cumulative loss of Wei has exceeded 45 billion yuan since its establishment. Xpeng Motors' financial report for the third quarter of 2022 also showed a net loss of 2.38 billion yuan, a year-on-year increase of 49%. In the first three quarters of 2022, Xpeng Motors suffered a cumulative loss of 6.778 billion yuan.
Tesla does this, what is its profitable password? Of course, the main thing is the technical advantage. As a leading electric vehicle manufacturer, Tesla has a leading edge in technology, and its integrated die-casting technology and battery technology are at the leading level in the industry. Secondly, the bargaining power of upstream raw materials is relatively strong, so as to achieve cost reduction management. Tesla is also promoting automated production lines, which can reduce labor by 99% and reduce labor costs to one-third of current within the next decade.
Tesla has started a price war, in the face of challenges, Chinese car companies should improve manufacturing technology, refined management, compress and control costs, otherwise, they will have to face the survival of the fittest in the market.