Tesla’s multi-billion-dollar Shanghai Gigafactory was officially put into operation, helping the company’s monthly sales rank among the best. As competitors catch up, Tesla will face more competition in 2021.
According to the latest news, Weilai, Xiaopeng, and Ideal Automobile have become pioneers in the competition with Tesla. These three startups are all listed in the United States and quickly won a lot of fans. In 2020, their electric car sales are rising, and the company’s stock price also soars due to the performance of Tesla stock.
Bill Russo, founder and CEO of Automobility, a Shanghai consulting firm, said: “Since June, the sales of Weilai, Xiaopeng, and Ideal Auto have risen steadily.” “In the face of these rapid developments, Internet support, A company with strong capital, can you still remain competitive?”
China is Tesla’s largest market after the United States. Tesla has sold more than 120,000 vehicles in the Chinese market this year. The company continues to expand the output of the Shanghai Super Factory. Analysts predict that the Chinese market will account for a larger share of Tesla’s sales and profits in the next few years.
Wedbush Securities analyst Dan Ives (Dan Ives) stated in a research report on December 21 that Tesla’s Model 3 sedan sales in the Chinese market have higher profit margins than its cars in the United States and Europe. , By early 2022, sales in the Chinese market may account for more than 40% of Tesla’s sales, and the current ratio is about 20%.
Business promotion
Musk said that Model Y’s sales have the potential to exceed all other cars previously produced, and it will start selling in China as early as next year. Earlier in December, drones captured about 40 Model Y leaving the Shanghai Super Factory.
Tesla, which dominates the Chinese electric car market, will face challenges next year. “In 2021, the Chinese market will continue to power Tesla’s global growth, greater than ever,” said Sharon Li, an analyst at JL Warren, in a recent report.
Tesla is also working hard to expand its business and recently opened Tesla centers in several cities in China, including Shandong Weifang and Linyi.
Tesla also began to produce charging piles in Shanghai. The company recently completed the construction of the 500th supercharging station and is moving towards the goal of building 650 a year.
Fierce competition
The industry organization China Passenger Automobile Association predicts that Tesla will sell 280,000 vehicles in the Chinese market next year. Although growth is amazing compared to 2020, there are still more than 80% of the market to be developed. The association predicts that the total sales of new energy vehicles in China in 2021 will be 1.7 million.
This means that the threat from Weilai, Xiaopeng and Ideal Cars is growing, and the three companies together are close to Tesla’s monthly sales. Lower-priced electric vehicles such as SAIC-GM-Wuling and BYD are also catching up.
The price of Weilai’s electric SUV is 40% higher than Tesla’s Model 3, but sales are also increasing steadily. Weilai CEO Li Bin recently stated that Tesla’s price cuts earlier this year brought some pressure, but the subsequent price cuts did not have a similar effect.
Similarly, the sales of Xiaopeng Motors have also seen strong growth due to lower prices than Tesla. Since this month, USD 2.2 billion has been raised through additional stock offerings, taking full advantage of the recent surge in stock prices.
Common opponent
But Tesla and its competitors also face a common threat: traditional automakers are rapidly switching to electric vehicles. Volkswagen plans to launch 8 ID series electric vehicles in the Chinese market by 2023, and Daimler is also launching EQC electric SUVs. These companies all have a huge network of dealers, services, and supply chains.
Tesla’s task remains daunting. HSBC fund manager Lu Bin (transliteration) was the first user to purchase a Model 3 sedan. He said that when he bought a new car in November last year, he chose a more spacious ideal car with a longer cruising range and 6 seats more suitable for family use.
(Source)
