The price war has stabbed Tesla, will FSD also be stabbed?

Brother Dao said car Z

2024-07-25 10:00Published in Anhui

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01 Tesla's second-quarter financial report showed that revenue increased by 2% year-on-year, but net profit fell by 45%, and the gross profit margin of automobiles fell to 14.65%.

02 In the Chinese market, Tesla's sales fell by 17% from April to June, of which continuous discounts and interest discount policies affected sales.

03 Due to the price discounts launched by competitors, Tesla CEO Elon · Musk said that the intensification of competition in the electric vehicle market is a challenge for Tesla.

04However, Tesla's FSD may enter China, Europe and other countries by the end of this year, which is expected to boost Tesla's sales in the Chinese market.

05In fact, domestic car companies have made rapid progress in intelligent driving technology, and Tesla FSD is facing fierce competition in the Chinese market.

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[Text/Financial Circle Club & Brother Dao Says Car Ma Jianyu] The price war in the domestic car market, did it sting Tesla? The answer is perhaps yes.

A few days ago, Tesla released its second-quarter financial report, with revenue of $25.500 billion in the second quarter, a year-on-year increase of 2%, but net profit declined sharply, and the net profit attributable to ordinary shareholders was $1.478 billion, down 45% year-on-year. In addition, in terms of the gross profit margin of automobiles, a key indicator for measuring the development of its main business, Tesla's data has fallen to 14.65% in the second quarter, far less than the data of more than 20% that year.

In terms of sales, Tesla delivered a total of 444,000 vehicles worldwide in the second quarter of this year, a year-on-year decrease of 4.8%. In the Chinese market, Tesla, which continues to offer discounts and discounts, has also seen a sharp decline, with sales falling by 17% from April to June. Elon ·Musk, CEO of Tesla, said that the competition in the electric vehicle market has intensified, and competitors have launched price discounts, which is a challenge for Tesla.

It is worth noting that in the second quarter earnings call, Musk revealed that the full self-driving software FSD V12.5 or V12.6 version will enter China, Europe and other countries, and be submitted to the regulatory authorities for review after early push, and is expected to be approved by the end of this year. And FSD is also considered to be the key to Tesla's sales in China.

Zhang Xiang, a visiting professor at the Yellow River Institute of Science and Technology, told the editor of "Caiquan Society & Dao Ge Talking Car" that Tesla's advantage in the Chinese market is currently being weakened, and its products have been challenged by models such as Xiaomi SU7.

However, are the current Chinese car companies really afraid of this card?

The price war has slashed Tesla

Once upon a time, the price reduction of Tesla's products had a huge impact on the domestic new energy vehicle market, and after the price reduction of Model 3/Y, domestic car companies were on their backs. However, as the price war in the domestic auto market became more and more fierce, Tesla became the one who was killed.

According to the China Passenger Association, Tesla sold 71,000 new cars in June, down 24% year-on-year and 2.2% month-on-month. In contrast, new energy vehicle companies such as BYD, NIO, Leap and Zeekr have all achieved the best results in history. Continued discounts and sluggish sales growth have inevitably affected Tesla's performance, and Musk's testimony is the best evidence.

It is worth mentioning that, judging from Tesla's actions, it is ready to continue to deal with the price war. According to information on Tesla's official website in China, the deadline for the limited-time 5-year zero interest campaign for some Model 3 and Model Y models has been extended from July 31 to August 31. But for Tesla, discounts don't solve all problems, after all, it has more and more competitors......

Xiaomi SU7, Zeekrypton 001/007, Zhijie S7, Ideal L6 and other models are direct competitors of Tesla Model 3/Y, in the same price range, domestic automakers continue to launch new products to benchmark Tesla's core models, the upcoming release of Ledao L60, Zhijie R7, AVATR 07 and other models are rushing to grab the Model Y market.

In addition, compared to the new cars mentioned above, the Model 3 released in 2016 and refreshed in 2023 and the Model Y released in 2019 are to some extent considered "old cars". In fact, on the earnings call, Tesla also announced a new car plan, which is expected to launch a cheap model in the first half of 2025. Of course, compared with the "cheap model", Tesla's FSD will come earlier. But will it boost Tesla's sales in China?

Is it a wolf or a sheep that has to be pulled out for a walk?

Rumors of "Tesla's FSD entry into China" have always been there, and Musk's statement this time is considered to have finalized the timetable for Tesla's FSD entry into China. It's just that, compared with the early saying that Tesla's FSD entry into China was "wolf", now there are more Tesla's FSD entry into China as "sheep".

As we all know, Tesla FSD has always enjoyed a good reputation in the field of intelligent driving, and Lin Bin, co-founder and vice chairman of Xiaomi, and He Xiaopeng, chairman of Xiaopeng Motors, gave positive evaluations after experiencing FSD in United States. But this does not mean that domestic car companies will be afraid of this "wolf", as Xiaopeng said, "China's urban road conditions are 10 times more complicated than those in United States, especially in some large cities in China, and FSD landing in China will face more complex road conditions." ”

At the same time, in the process of crazy involution of domestic car companies, intelligent driving technology has also developed by leaps and bounds. At the beginning of July, the Xpeng XNGP XOS 5.5.0 public beta version was officially launched, with a total of 426 content upgrades, including the ability to cross roundabouts without maps, the upgrade of the U-turn experience, and the flexible passage of small roads. Huawei's ADS system has been iterated to the 3.0 era, claiming to achieve human-like decision-making and planning, with a more human-like driving trajectory, higher traffic efficiency, and a pass rate of >96% at complex intersections......

Tesla's FSD landing in China probably can't avoid being besieged. It is worth noting that,At present,Tesla FSD also lacks advantages in price,Tesla FSD 64,000 yuan buyout price is more than 40% higher than most domestic manufacturers,As a comparison,Xpeng XPILOT 3.0 is priced at 36,000 yuan,NIO Pilot full package price is 39,000 yuan,In addition,Using the no-map intelligent driving solution equipped with lidar,The Aion Tyrannosaurus Rex that can cover 99% of the road surface in terms of urban NDA has been sold to less than 200,000 yuan。

From this point of view, it is difficult to say whether Tesla's FSD entry into China is a wolf or a sheep.

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