On October 4 th, Tesla went on the hot search again-the biggest drop in nearly four months! Tesla’s market value evaporated by 510 billion overnight.

What is the reason?

What is the performance of the automobile consumption market during the National Day holiday? From September 30th to October 2nd, it took the upstream journalists three days to visit more than 10 new energy automobile sales stores in the main city of Chongqing. The feedback from the market is that compared with brands such as Tesla, domestic products such as Weilai and Sailis seem to be more concerned by users.

Good policies to stimulate new energy consumption

On the eve of the National Day, a favorable policy that has attracted much attention from the automobile consumer market has finally landed. In order to support the development of new energy automobile industry and promote automobile consumption. On September 26th, the Ministry of Finance, State Taxation Administration of The People’s Republic of China, Ministry of Industry and Information Technology and other three departments issued an announcement to "continue the vehicle purchase tax exemption policy for new energy vehicles".

The "continuation" of this favorable policy means that new energy vehicles purchased from January 1, 2023 to December 31, 2023 are exempt from vehicle purchase tax.

Undoubtedly, the landing of boots has stimulated the consumption of automobiles, especially new energy vehicles.

During the upstream journalists’ visit from September 30th to October 2nd, they saw a large number of people who were ready to buy cars, both in Weilai’s sales stores and in Celeste’s brand stores, and they were visiting and learning about their favorite models.

New energy has become the first choice for most car buyers. At this point, the data disclosed by China Automobile Industry Association also confirmed the investigation results of upstream journalists. The data shows that from January to August this year, the production and sales of new energy vehicles were 3.97 million and 3.86 million respectively, up 1.2 times and 1.1 times respectively year-on-year, with a market share of 22.9%. This means that one out of every five cars sold is a new energy vehicle.

▲ The corner of the domestic new energy automobile sales store in Chongqing’s main city during the National Day holiday in 2022.

Domestic new energy brands are becoming more and more "fragrant"

"In the past, when talking about new energy vehicles, Tesla was definitely the first thing that came to mind, but now domestic brand products are getting stronger and stronger, and there are more comparisons and choices." On the afternoon of October 1, the upstream journalist met Mr. Liang, a consumer who came to see the car, in a domestic new energy retail center in Xinguangli, Chongqing.

Mr. Liang told the upstream journalist that his family lived near Baguocheng in Jiulongpo District, and he visited relatives of Xinpaifang in Yubei District on the same day. After dinner, the family went out shopping. As a car owner, he was in Xinguang Tiandi, where new energy automobile brands got together. I am very happy.

"What brand are you going to choose?"

"Considering domestic at present? ET5 or ask M7, now still hesitating … "

"Why not choose Tesla?"

In this regard, Mr. Liang’s answer is that although Tesla’s price reduction has increased its attractiveness, its frequent negative problems, product iteration problems, and the rise of domestic brands’ cost performance have made him and his family more determined to choose domestic products.

This "new trend" of consumption in the market was found in the three-day interview survey of upstream journalists, and it was not a case. Some consumers even listed his impression of Tesla as a Model X car accident driven by Jimmy Lin.

Of course, the choice of consumers is more critical to issues such as price, performance and after-sales rights protection. Compared with foreign brands, domestic new energy vehicles have shown the advantages of "proximity" in these aspects that users are most concerned about, further enhancing the fragrance of domestic products.

▲ Screenshot from "New Energy Vehicle Consumption Insight Report"

Domestic new energy shows the trend of "letting a hundred flowers blossom"

Like the data obtained by the upstream journalists, the consumption of new energy vehicles presents a lively scene, and at the same time, domestic brands show a trend of blooming with rich types. This is consistent with the latest issue of the Insight Report on New Energy Vehicle Consumption.

This report was released by Know Car Emperor and Xinhua Finance.

According to the survey data of this report, among consumers’ car purchase intentions, with the support of product progress and policies, domestic cars represented by China traditional brands and new car-making forces are the most popular, accounting for 56.2% in total, and self-owned brand new energy vehicles are increasingly favored by consumers.

Another data shows that from January to August this year, Tesla’s sales in China increased by less than 60% year-on-year, which was much lower than the overall performance of China’s new energy vehicle market in the same period. According to the sales ranking data of new energy manufacturers from January to August released by the Association, Tesla China sold 240,538 units, up 57.7% year-on-year, ranking third, which was surpassed by BYD and SAIC-GM-Wuling respectively.

At the same time, in the sales ranking of new energy cars from January to August, the sales volume of Model 3, which was once a best seller in China, was 68,120 units, with a year-on-year growth rate of -26.5%, which was also the only model in the top 15 of the ranking that declined year-on-year.

In fact, Tesla, once in the limelight, is facing more and more competitors, not only new car-making forces such as Weilai, Ideality and Tucki, but also new energy vehicles transformed from traditional car companies such as BBA, BYD and Geely. The above-mentioned brands are gradually gaining market recognition and favor with more excellent product strength, richer product lines and more advantageous segmentation fields.

"Now walking on the road, all kinds of new energy vehicles may be too new to be called models, but you see that Tesla, or those two cars, really lacks new ideas." Many consumers told reporters in the interview.

Indeed, the bias towards a single product line has also caused Tesla to encounter more and more competitors. For example, on October 1, Weilai announced the delivery volume in September 2022, and delivered a total of 10,878 new cars. In the third quarter of 2022, Weilai delivered 31,607 new cars, a year-on-year increase of 29.3%, a record high. Domestic brands and Model Y have formed a trend of rushing to the beach. For example, in August this year, in Chongqing’s new energy automobile brand sales list, Changan followed BYD in the runner-up and surpassed Tesla; In the sales list of new energy vehicles in Chongqing in the same month, Celestial asked M7, showing a rapid growth trend with a chain growth rate of 490.9%.

"Subsidizing sales" is accused of "disguised price reduction"

On October 3, Tesla announced the automobile production and delivery report for the third quarter of 2022. The data shows that Tesla produced more than 365,000 cars and delivered more than 343,000 cars in the third quarter. However, this delivery volume is not as good as analysts had expected.

Affected by this, on October 3, local time, Tesla’s share price plummeted.

The delivery experience does affect consumers’ choice in vehicle purchase. From October 1 ST to 2 nd, the upstream journalists visited Xinguang Tiandi and Chongqing Halo Shopping Park in Yubei District for two consecutive days, and visited some new energy automobile stores. At the same time, only 3322 customers of foreign brands in Chongqing Xinguang Tiandi Experience Store intermittently walked into the store to consult and see the car, which seemed a little deserted; The Xinguangli Retail Center in Chongqing, LI, and Xinguang Tiandi Experience Center in Chongqing, Xpeng Motors, which are located in the same shopping mall, are constantly visited by customers, which is even more lively.

"At present, you can enjoy an insurance subsidy of 7,000 yuan when booking a car, and our delivery cycle has become shorter." Tesla store sales staff told upstream journalists that this was due to the capacity expansion of the Shanghai factory. Now the lead time for ordering Model 3 and Model Y has been shortened to 4 to 8 weeks and 1 to 4 weeks respectively. It is also this insurance subsidy and shortened delivery cycle that has caused Tesla to encounter criticism and is accused of being a "disguised price reduction".

In addition to causing dissatisfaction among some old car owners, this move also made speculations and comments on Tesla’s move, such as "facing fierce competition and impacting sales". The shortening of the delivery cycle, some analysts pointed out that this may be due to the suspected overcapacity in the Shanghai factory after Tesla’s Berlin factory was put into production.

Corresponding to the slightly deserted Tesla store is the excitement of domestic new energy brand stores.

"Since its release on September 21, in just 10 days, the G9 car has received more than 100 orders from our single store." The sales staff of Chongqing Xinguang Tiandi Experience Center in Xpeng Motors told reporters this way; In the nearby Xinguangli Retail Center in Chongqing, LI, in just a few minutes, the reporter saw that at least three groups of customers entered the store to consult the newly listed L9 and the newly released L8; Weilai Space in Chongqing Halo Shopping Park is even more lively, and its models such as es8, es6, ec6, et7 and es7 attracted at least dozens of customers.

Upstream journalist Liu Hanshu