Tesla has lowered prices again.
On January 12th, according to Tesla's official Weibo account, the price of the updated Tesla Model 3 rear wheel drive was reduced by 15500 yuan from 259900 yuan to 245900 yuan; The price of the Model 3 Long Range Renewal has been reduced by 11500 yuan to 285900 yuan.
The two models of Model Y have also lowered their prices simultaneously. Among them, the Model Y rear wheel drive version was reduced by 7500 yuan to 258900 yuan; The Model Y Long Range Edition has been reduced by 6500 yuan to 299900 yuan.
However, at the same time, Tesla has also cancelled its previous insurance subsidy and 1.99% low interest loan plan for the Model 3.
Repeatedly lowering prices in the short term after introducing preferential policies
Musk: Tesla will still strive to lower prices
In the Chinese market, Tesla has repeatedly announced price reductions in the short term after introducing insurance subsidies and other preferential policies.
In September 2022, Tesla announced that for car owners who completed the pick-up process from September 16th to September 30th, Tesla will provide an insurance subsidy of 8000 yuan, which can be directly used to reduce the car price. Less than a month after the end of insurance subsidies, on October 24th, Tesla suddenly announced a price reduction for all domestic models, ranging from 14000 to 37000 yuan.
On January 1, 2023, Tesla launched a New Year's limited time benefit, which means that between January 1 and February 28, orders for Model 3 and Model Y delivered can enjoy a limited time delivery incentive of 6000 yuan; If you purchase the corresponding car insurance through Tesla's cooperative insurance agency, you can also enjoy an insurance subsidy of 4000 yuan.
However, just a few days later, on January 6th last year, Tesla suddenly announced a significant price reduction for its domestic models. The starting price for the Model 3 was 229900 yuan, and the starting price for the Model Y was 259900 yuan, with a delivery cycle of 1-4 weeks. The model 3 rear wheel drive version has the largest decrease, with a decrease of 36000 yuan, a decrease of 13.54%; The Model Y Long Range Edition saw the most drastic price reduction, with a direct drop of 48000 yuan, a decrease of 13.41%. The New Year's limited time benefits have been terminated early due to this price reduction.
On January 1, 2024, Tesla officially announced once again a subsidy of 6000 yuan for the Model 3 rear wheel drive car insurance, and introduced a low interest financial policy. Limited time purchases of the Model 3/Y can save up to 23000 yuan.
Less than two weeks later, on January 12th, according to Tesla's official Weibo account, the price of the Tesla Model 3 rear wheel drive new version was reduced by 15500 yuan from 259900 yuan to 245900 yuan; The price of the Model 3 Long Range Renewal has been reduced by 11500 yuan to 285900 yuan. And the previous insurance subsidies and low interest financial incentives also came to an abrupt end.
Some netizens said that the one they bought a year ago lost over 30000 yuan; Some netizens also question whether this operation is suspected of deceiving consumers
A lawyer has stated that although this behavior is not illegal, it will bring a very bad experience to consumers and may harm brand reputation.
Tesla CEO Elon Musk stated on October 18, 2023 during a Q3 earnings conference call that Tesla will continue to strive to lower the prices of its cars.
He said, "I am concerned about the high interest rate environment we are in. Car buyers are concerned about how much money they have to pay back each month. If interest rates remain high, or even higher, it will be much more difficult for people to buy cars."
"The importance of cost cannot be overemphasized... We must make our products more affordable so that people can afford them. Reducing the cost of Tesla cars is like a 'game of power, just a few cents'," he added.
Like Musk, Tesla's CFO and Chief Accounting Officer, Vaibhav Taneja, also emphasized that the company will "unwaveringly" pursue further cost reduction in 2024, which involves engineering and factory operations.
Pure electric sales in the fourth quarter are not as good as BYD's
This year, the market value has evaporated by over 480 billion yuan
On the evening of January 2, 2024, Tesla announced its fourth quarter car production and delivery volume for 2023. In the fourth quarter of 2023, Tesla produced approximately 495000 electric vehicles worldwide and delivered over 484000 vehicles. In 2023, Tesla's electric vehicle delivery volume increased by 38% year-on-year, reaching 1.81 million vehicles, slightly exceeding the previous annual delivery target of 1.8 million vehicles; The production volume increased by 35% year-on-year, reaching 1.85 million vehicles.
Analysts have stated that some Tesla models have lost their tax incentives this year, causing vehicle sales to advance to the fourth quarter of last year, which will put pressure on this year's delivery volume.
Tesla stated that it expects to release its Q4 2023 financial report and hold an online performance meeting after the close of trading on Wednesday, January 24, 2024.
However, even for pure electric vehicles, Tesla has been kicked out of the throne by BYD.
According to official data released by BYD, in the fourth quarter of 2023, it sold over 526000 pure electric vehicles, while Tesla's sales during the same period were close to 485000 vehicles. Throughout the year, BYD sold nearly 1.6 million pure electric vehicles, an increase of over 70% compared to 2022. At the same time, BYD produces a wider range of vehicles, including pure electric vehicles and hybrid vehicles, among others (Tesla currently only has pure electric vehicles). Therefore, in terms of cumulative total sales throughout the year, BYD has firmly ranked first on China's new energy vehicle delivery list with 3.0244 million units, surpassing Tesla and locking in the position of global new energy vehicle sales champion. The changes in sales rankings also reflect China's growing influence in the global automotive industry.
On social media platform X, some netizens compared Tesla with BYD, and Musk responded that Tesla is more of an AI/robotics company than a car company.
Since the beginning of this year, Tesla's stock price has been continuously falling. As of the close of January 11th local time, Tesla's stock price closed at $227.22, a further decrease of 2.87%, with a total market value of $722.3 billion, which has dropped by more than $67.5 billion (approximately RMB 483.5 billion) compared to the end of last year.
The 2024 "price war" among car companies has begun
At the beginning of the new year, the "price war" among car companies continues.
Apart from Tesla, multiple car companies have introduced various preferential policies this year, some even directly lowering prices.
Nezha Motors announced that they have ordered Nezha AYA/Nezha X/Nezha S/Nezha GT, and can enjoy a 5000 yuan Nezha New Year exclusive red envelope gift; FAW Toyota has launched a "direct subsidy for all models" policy, where all models can enjoy a limited time direct subsidy for purchase tax, up to 5999 yuan; The Geely Emgrand L HiP Championship Edition also offers a New Year subsidy of 5000 yuan, which can be combined with up to 14000 yuan in cash subsidies; The Lynk&Co 09 has directly lowered its price, with the official guide price for all models lowered by 10000 yuan, and the adjusted starting price is 247900 yuan.
According to a research report by Huachuang Securities, due to the fact that the prices of joint venture vehicles and electric vehicles have not yet reached the bottom, and the spatial range is relatively large, it is expected that the price pressure of 2023 will continue in 2024.
The reporter noticed that the limited time promotion policies launched by car companies in this round are mostly concentrated from January 1 to December 31, 2024, and some have been extended until before the Spring Festival in 2024. Compared to previous years, the Spring Festival in 2024 is relatively late and is also considered a big year for car sales.
Cui Dongshu, Secretary General of the National Passenger Car Market Information Joint Conference, believes that the later the Spring Festival, the longer the market boom period before the Spring Festival, and the stronger the pre holiday consumption growth in the car market.
From the current perspective, the price war in 2024 remains the main theme of the automotive market. Ping An Securities research report predicts that the "price war" led by leading new energy vehicle companies will continue in 2024, especially in the mainstream price range of 100000 to 200000 yuan. In addition, the decline in battery costs also provides space for car companies to lower prices for new energy vehicles.
(This article does not constitute investment advice, and the risk of operation is borne by oneself based on it)