As North America is in a recession, they need to cut prices even more.
New Energy Vehicles (NEVs) in China
- Thread starter supercat
- Start date
As North America is in a recession, they need to cut prices even more.
I have a slightly different take on the "fake" news that Tesla is planning to export to US, as Elon Musk already denied in Twitter.
Given Tesla is said to approach 95% localization and historical productivity of large manufacturing operations in the Shanghai region, I can bet Tesla Shanghai has the highest productivity and the highest gross margin in its global operations. Given also that BYD is breathing on its neck and will most likely surpass Tesla in global EV sales ranking, it is only logical that Tesla is trying to expand its China market share with whatever it takes. As long as Tesla is profitable in its Shanghai operation, I would do whatever it takes to grab market share.
Besides that, those who already bought 2nd or 3rd BBA in China are not likely switching to Tesla right now. With Tesla considered to be in the premium segment, its million/year output is too much for locals to consume. Either it finds more export room, or it expands local market share.
For the moment, I don't think this is a bad thing for Tesla. Rather, this is lethal to the survival of XPeng, Li, Nio and competing EV models from BBA.
Given Tesla is said to approach 95% localization and historical productivity of large manufacturing operations in the Shanghai region, I can bet Tesla Shanghai has the highest productivity and the highest gross margin in its global operations. Given also that BYD is breathing on its neck and will most likely surpass Tesla in global EV sales ranking, it is only logical that Tesla is trying to expand its China market share with whatever it takes. As long as Tesla is profitable in its Shanghai operation, I would do whatever it takes to grab market share.
Besides that, those who already bought 2nd or 3rd BBA in China are not likely switching to Tesla right now. With Tesla considered to be in the premium segment, its million/year output is too much for locals to consume. Either it finds more export room, or it expands local market share.
For the moment, I don't think this is a bad thing for Tesla. Rather, this is lethal to the survival of XPeng, Li, Nio and competing EV models from BBA.
Li/Nio mostly sit in much higher price segment?
Elon Musk likes to flip flop and changes his actions. Sooner or later people will realize that tesla is not as premium as they think. They would buy more BYD, Nio and other Chinese EVs. Both BYD and Nio are also putting efforts into exports. As elon musk is distracted by twitter takeover, he will just build another factory in China and use even more Chinese batteries, to remain profitable. The Japanese cars will be displaced worldwide very quickly.
BYD's Jinan base is raising production throughout next year. Looks like it's starting production in January?
Dynasty series model will start production in January and have annual production of 200k.
A new dynasty series model will also start production here in September and eventually have annual production of 120k.
Denza Brand model will start production here in February and reach annual production of 120k.
Marine series will have both a domestic and a export project here. Starting in August and reach annual production of 120k.
So, Jinan will get quite big by the end of next year.
Dynasty series model will start production in January and have annual production of 200k.
A new dynasty series model will also start production here in September and eventually have annual production of 120k.
Denza Brand model will start production here in February and reach annual production of 120k.
Marine series will have both a domestic and a export project here. Starting in August and reach annual production of 120k.
So, Jinan will get quite big by the end of next year.
Notice that the brake light was on the entire time the vehicle accelerated out of control.
My god what a horrifying accident, initially they probably didn't want to risk damaging the expensive car until it was too fast to stop safely without severe injury to the driver.
This is the double edged sword with implementating auto drive features in that it give control of the car to software with automatic updates that may or may not be buggy.
BYD's capacity expansion is so impressive.
We have now pictures showing that Xi'an plant's 3rd phase will be up to 1400 cars a day by December, which means first 3 phases will be totaling 3000 cars a day (so over 1 million a year run rate). The 4th phase is under construction and they expect to produce 1.4 million cars at Xi'an in 2023 and be the world's largest NEV base.
BYD D1 taxi is now everywhere in central and south America.
The first 700 Atto 3 has been delivered to Norway and they will be delivered before the end of the year. Price works out to be 273k RMB each.
Yuan+ scored 4615 orders in Thailand in the first week of availability and they have delivered 435 by Nov 10th. Expected to deliver 5000 before this year's end.
We have now pictures showing that Xi'an plant's 3rd phase will be up to 1400 cars a day by December, which means first 3 phases will be totaling 3000 cars a day (so over 1 million a year run rate). The 4th phase is under construction and they expect to produce 1.4 million cars at Xi'an in 2023 and be the world's largest NEV base.
BYD D1 taxi is now everywhere in central and south America.
The first 700 Atto 3 has been delivered to Norway and they will be delivered before the end of the year. Price works out to be 273k RMB each.
Yuan+ scored 4615 orders in Thailand in the first week of availability and they have delivered 435 by Nov 10th. Expected to deliver 5000 before this year's end.
