Everyone is sure to know about Tesla's recent price reduction. Following the price reduction, Tesla has launched another major move in the market: not only can it purchase a car with a "0 down payment", but the new Model 3 high-performance version has also officially landed on Tesla's official website in China.
On April 24th, Tesla officially announced that Model 3 and Model Y have launched a "0 down payment" promotion. Customers who order a specified version of Model 3 can enjoy a "0 down payment"+"discounted interest rate", while customers who order a specified version of Model Y can enjoy a limited time "0 down payment" or "limited time 0 interest". This raises a question: Is Tesla panicking?
Source: Tesla Official
The competition in the current domestic new energy vehicle industry is indeed very fierce. Previously, many people believed that the price reductions of Tesla, Ideal, and Xiaopeng in this round may usher in a new round of price war for the entire industry. In addition to price reductions, some car companies also attract consumers through various methods such as adding configurations and reducing prices, separating cars from electricity, and implementing flexible financial solutions.
From the financial report data, industry competition has also been reflected. Tesla's latest financial report shows that in the first quarter of 2024, Tesla achieved a revenue of $21.3 billion, a year-on-year decrease of 9%. This is the first quarterly revenue decline for Tesla in nearly four years. Tesla's net profit in the first quarter was $1.129 billion, a year-on-year decrease of 55%.
In terms of car sales, Tesla delivered 386800 new cars in the first quarter of 2024, a year-on-year decrease of 8.5%. Among them, there were a total of 370000 Model 3 and Model Y vehicles, and 17000 other products. From the perspective of the Chinese market, Tesla's sales in China decreased to only 133000 units in the first quarter of 2024, a significant year-on-year decline.
With a series of industry news releases, such as the continuous sales of Xiaomi SU7 exceeding expectations, the opening of numerous models at the Beijing International Auto Show, and the establishment of Huawei Supercharged Alliance, it is expected that the industry will maintain a high prosperity in the future. However, for car companies, the situation may be more difficult.
In the future, the competition in the new energy vehicle market will become more intense. With the application of new technologies and the expansion of market size, leading enterprises will further reduce costs through large-scale production, and industry concentration may further increase.
Therefore, in this context, investment in the new energy sector still needs to focus on leading companies. In terms of selection, the related product battery ETF (561910) and the China Merchants CSI Battery Theme ETF Link Fund (Class A: 016019, Class C: 016020) track the CSI Battery Theme Index. In terms of composition, the index covers battery manufacturing, core materials, lithium battery equipment, and core energy storage inverter targets, with over 50% of the weight being the concept of new energy vehicles.