Tesla's performance was not as expected, and Musk explained that it was due to competition from Chinese car companies
On January 24, Tesla announced its financial results for the fourth quarter of 2023, which did not meet analysts' expectations, although deliveries increased by 38% year-on-year, but revenue increased by only 3% year-on-year.
Musk went on to explain that any major attempt to boost sales could likely come at the cost of a further decline in operating margins, as Tesla would have to compete with BYD in China.
He also said that Chinese auto companies are "the most competitive" and that "if trade barriers are not erected, they will essentially destroy most other car companies in the world."
Musk's remarks evaporated Tesla's market value by about 570 billion yuan
On January 25, Tesla fell 12.13% when the three major U.S. stock indexes collectively closed up, and its market value evaporated by 80 billion US dollars (about 574.272 billion yuan).
According to Musk's personal shareholdings, Musk lost $18.8 billion on the 25th, but he is still the richest man in the world.
Is Musk's remarks telling the truth, or is it for Tesla's Chinese market?
According to data released by the China Association of Automobile Manufacturers on the 11th, in 2023, the production and sales of automobiles in mainland China will both exceed 30 million for the first time, a record high, of which 4.91 million units will be exported, and it is expected to become the world's largest automobile exporter.
Mainland China exported 1.203 million new energy vehicles, reflecting a 77.6% y/y increase. In the fourth quarter of 2023, China's own brand BYD became the world's largest manufacturer of pure electric vehicles.
According to the data released by the China Passenger Car Association, for the whole of 2023, Tesla's retail sales share in the Chinese market will be 7.8%, ranking second, behind BYD's 35.0%.
But judging from the data analysis, Musk should be telling the truth, but the capital market in the United States is not satisfied with Musk's explanation. Although Musk has repeatedly emphasized that Tesla is a technology company, it is not a car company in the traditional sense.
The Chinese market has made Musk and Tesla once the world's largest new energy vehicle manufacturer
Musk has publicly acknowledged that China is his blessed land. Tesla encountered collective shorting of capital in the U.S. market that year and was once on the verge of bankruptcy. At that time, Tesla was targeted by short-selling institutions, many models could not be delivered on time, and the stock price fell again and again, and Musk in the eyes of the media once changed from "Silicon Valley Iron Man" to "Silicon Valley Jia Yueting".
During Musk's difficult times, the Chinese market opened its arms to him, and at that time in order to let Truss come to China. We can say that we want land to give land, and we want money to give money, which helped Tesla get through the difficulties.
Tesla could not raise money, ICBC, Agricultural Bank of China, C&D and Pudong Development and other banks directly approved a 5-year loan of 10 billion yuan to Tesla, you will grant land if you want land, and lend you money if you want money.
Tesla's Shanghai Gigafactory will deliver 947,000 vehicles in 2023, a year-on-year increase of 33%, accounting for more than half of its global production capacity.
We spare no effort to introduce Tesla, hoping that Tesla's "catfish effect" will stimulate the mainland to form a complete set of new energy vehicle industry chain. At present, this goal has been achieved, and in the global new energy vehicle market, many domestic brands can compete with Tesla.
The killer feature of our new energy vehicle companies in the world is the "complete industrial chain of new energy vehicles", aviation and various technology patents incubated on this basis.
The reason why Xiaomi and Huawei have spared no expense to enter this track is that new energy vehicles will subvert the entire traditional industry.
From engines to electric motors, the automotive industry has changed the rules of the game
In the past, the core technology of the automotive industry was engine technology, and now the core technology of new energy vehicles is power battery and artificial intelligence. Continental has become the largest producer of drive motors, and China has applied for 74% of the world's power battery patents.
In terms of the top 10 companies in the global power battery installed capacity in 2023, Chinese companies occupy six seats, namely CATL, BYD, China Innovation Airlines, Guoxuan Hi-Tech, EVE Lithium Energy, and Funeng Technology.
Both Japan and Germany, the traditional automotive powerhouses, are studying China's new energy vehicle industry and have come to the conclusion that it is impossible for Japan and Germany to replicate the path of China's new energy vehicle development.
It's not that there is no breakthrough in technology, but that Japan and Germany do not have the market environment for the development of China's new energy vehicles.
Recently, a number of heavyweight Japanese entrepreneurs have publicly disparaged China's new energy vehicles, which stands in stark contrast to Musk's praise. Japan is reluctant to admit that they are lagging behind in the new energy vehicle track, just as they did not believe that digital cameras could replace hand-over cameras.