Recently, under the multiple pressures of the reduction of policy subsidies for new energy vehicles and the difficult start of the consumer market, the sales data of pure electric vehicles have begun to decline. For Tesla, which has been suffering losses for more than ten years, it is It hopes to use the Chinese automobile market to pay for its pure electric vehicle layout strategy from high-end to mid-to-low-end, in order to achieve positive revenue. However, as the burden on its automotive after-service market increases, from the perspective of local industry insiders on the Chinese market’s “creation and destruction of gods”, Tesla has moved on to the path of “destroying gods” and has begun to pay for it.
Tesla and the Chinese Characteristics Car Market
Information released by the China Association of Automobile Manufacturers on September 11 showed that from January to August, my country’s new energy vehicle production and sales reached 799,000 and 793,000 respectively. vehicles, a year-on-year increase of 31.6 and 32, and the growth rate began to decline compared with January to July.
In the fall of 2014, Tesla’s Beijing and Shanghai after-sales service centers were completed, announcing its start in the Chinese automobile market. According to data released by Tesla, revenue in China was US$480 million in 2014, US$320 million in 2015, US$1.06 billion in 2016, US$2.03 billion in 2017, and US$1.757 billion in 2018. Although revenue has grown rapidly in the past four years, losses have also become increasingly larger. Since last year, the Chinese regional market has experienced a decline.
According to the market characteristics released by the Passenger Car Association, the regional operation characteristics of new energy vehicles in 2019 include leasing and leasing accounting for 30% and unit users accounting for 20%. It can be seen that vehicles used in the public sector are still the focus of new energy development.
In fact, before Tesla entered the Chinese automobile market, the country was already promoting new energy and providing market subsidies. For details, please see the "About the Private Purchase of New Energy Vehicles" issued on June 4, 2010. "Notice on Subsidy Pilot", and "Notice on Expanding the Demonstration and Promotion of Energy Saving and New Energy Vehicles in the Public Service Field". A large number of subsidies for new energy automobile consumption have promoted the enthusiasm of enterprises for production. Although the technology is insufficient, we have subsidies.
Just before and after Tesla entered the Chinese market, its models had not yet entered the new energy vehicle subsidy list. Interestingly, it is estimated that its subsequent subsidy applications were submitted together with the fraudulent subsidy applications from related companies. On the other hand, on July 14, 2014, another piece of good news was released, "On the Issuance of the Implementation Plan for the Purchase of New Energy Vehicles by Government Agencies and Public Institutions", which stimulated the enthusiasm of domestic new energy vehicle manufacturing companies. Of course, Tesla's positioning is within the "eight regulations", and of course it is not eligible for public car purchase subsidies.
Despite the lack of subsidies, Tesla’s sales in the Chinese market have increased dramatically. Is this a miracle in the Chinese market?
According to the "2019 New Energy Vehicle Consumer Market Research Report" released by the New Energy Vehicle Market Research Center, after new energy vehicles enter the consumer market, everyone's concerns begin to focus on cost performance, charging, and batteries. Safety services, service convenience, used car residual value and other practical aspects.
Obviously, for Tesla, which only uses the direct sales model, this latter demand is fatal to its money-making model of only selling cars.
Tesla and the market that is about to be dragged down
Perhaps seeing more demand from the Chinese market, before 2019, in order to rapidly advance its business in China, Musk gave Three Tesla China executives have been promoted. According to Tesla’s official confirmation, Tom Zhu, who once served as the company’s general manager in China, has been promoted to Tesla’s global vice president and president of Greater China; Grace Tao has been promoted from corporate affairs in China. General manager was promoted to vice president of Tesla; Allan Wang was promoted from deputy general manager of China to general manager of Tesla China.
Tesla’s previously announced second-quarter financial report showed a loss of US$408 million, and this was the result of the company’s models setting sales records.
In addition to the leveling of losses caused by technical investment, what other reasons lead to losses? Tesla CEO Musk emphasized in a conference call that Tesla needs to speed up the production of electric vehicles and solve logistics problems.
To be sure, logistics problems will only be one of the reasons for Tesla’s huge losses. As we all know, Tesla is different from traditional car manufacturers in that it owns and operates all its own stores, Service centers and distribution centers. There are huge management and operation costs in the related after-sales service system. As a famous saying goes, "Where there are people, there are rivers and lakes." In order for the rivers and lakes to operate, in addition to morality, money is also required.
Coincidentally, at the beginning of 2018, the four ministries and commissions issued the "Notice on Adjusting and Improving Fiscal Subsidy Policies for the Promotion and Application of New Energy Vehicles" to transfer subsidies from the consumer side to the service side. At the same time, further interpretation It was emphasized that subsidies should be used to support the construction of "shortcomings" in charging (hydrogenation) infrastructure and supporting operation services.
The first two items are relatively clear. Regarding "supporting operation services", there is no official key explanation. I checked the relevant information as follows: New energy logistics vehicles and new energy passenger vehicle commercial operation services can be Including leasing, finance, insurance, charging stations and all aspects of operation. Regional policy subsidies may also include new energy vehicle-related consulting, event planning, advertising, evaluation, experience, market research, data analysis and other services.
It can be seen that Tesla has finally caught up with the policy trend and has also entered the pit of supporting operation services.
Not long ago, the editor communicated with a car supporting operation service provider. According to him, Tesla is seeking their support in second-hand car operation services. In their eyes, this American high-tech company The company has finally begun to gain ground and fall into their hands. However, due to Tesla’s lack of policy support, automotive aftermarket-related services will drag Tesla into the abyss.
Let’s see if a high-tech company can survive next summer after transforming into an operational service provider.