Earlier, many Chinese auto companies jointly signed the "Letter of Commitment to Maintain Fair Competition Market Order in the Auto Industry", but a few days later, they deleted the clause on "price", which triggered the industry's concern over the price war between domestic cars and Tesla. Pay attention, so who is more afraid of price wars between Chinese auto companies and Tesla?
According to the first-quarter performance data released by several auto companies, the data shows that BYD, the leader of domestic new energy vehicles, had a revenue of 120.1 billion yuan in the first quarter, while the net profit attributable to the parent was only 4.13 billion yuan, with a net profit margin of 3.4%.
BYD is already a relatively profitable company among domestic new energy auto companies, while many other new energy auto companies are still in the red. The more gains, the greater the losses, which shows that their life is much more difficult than that of BYD.
In contrast, the global new energy vehicle leader Tesla’s profit situation is much better. Tesla’s performance in the first quarter showed a revenue of 23.3 billion U.S. dollars, a net profit of 2.931 billion U.S. dollars, and a net profit margin of 12.6%. , The profit level is significantly better than that of China's new energy vehicles.
However, Tesla's performance also shows that its net profit in the first quarter fell by 22% year-on-year, and its gross profit fell below 20%, which is a significant decline compared to the previous profit level. The decline in Tesla's profits stems from the fact that it has initiated a price war since the New Year this year. The price cut in the Chinese market was as high as 48,000 yuan, and in the United States it was also cut by 5,000 US dollars. It can be said that Tesla is the initiator of the price war. By.
Tesla launched a price war aggressively because it hopes to achieve more sales this year, and it hopes to achieve its sales target of 2 million vehicles this year. However, its sales volume in the first quarter of this year was 425,000 vehicles, and in the second quarter it was 466,000 vehicles. In the first half of the year, it failed to complete half of the sales target.
One of Tesla's failures to meet its sales goals is the competition from Chinese new energy auto companies. In the Chinese market, the sales volume of China's new energy auto companies is growing rapidly, and BYD firmly occupies the first place. The sales of GAC, Geely, Ideal and other new energy auto companies are also growing steadily, and the Chinese market is the world's largest new energy market. The auto market, which prompted Tesla to accelerate its price cuts in the Chinese market to seize the market.
Tesla is also dealing with the competition of China's new energy vehicles in the global market. China's new energy vehicles are being exported on a large scale. Relying on the competitiveness of new energy vehicles, China's auto exports have exceeded 2 million, and it has even surpassed Japan to become the world's largest. As a car exporting country, one of the target markets for China's car exports is Europe, and Europe is the market that Tesla is attacking.
One of the main reasons for China's new energy vehicles to win the popularity of domestic and foreign consumers is the price. The new energy vehicles sold by Chinese auto companies are mainly models that are less than 200,000 yuan, and there are also a large number of models with a price of less than 100,000 yuan. To attack Chinese automakers, Tesla needs to enter models below 200,000 as much as possible. Model 3 has approached 200,000 after a large price cut, and Tesla also plans to launch model 2 with a price below 200,000.
Of course, another reason for Tesla's price reduction is cost. Just as the above-mentioned Tesla's single-car profit far exceeds that of Chinese auto companies, its profit margin still exceeds 10% after the sharp price cut. He also said that his own car manufacturing costs are still at This is the confidence for it to continue to cut prices.
It can be seen that Tesla still has the confidence to carry out further price wars, and China's new energy auto companies will be under tremendous pressure to continue to cut prices. This "Letter of Commitment" should be more beneficial to domestic auto companies, but some netizens found that After signing the letter of commitment, some domestic auto companies have given further preferential discounts, which shows that not only Tesla has the motivation to cut prices in order to seize the market, but domestic cars also have the urge to cut prices.