Have you seen Tesla?

Yes, Tesla is not here.

But even if you don't attend the Shanghai Auto Show, the legend of Tesla is circulating everywhere in the new energy market.

There is a legend that the price of Tesla will continue to decline in order to make it affordable for more people.

But is this really the case?

Data don't lie.

There is such a group of people that every time Tesla reduces the price, they say everywhere that domestic production is over.

In the mouths of these people, domestic new energy is completely a paper tiger, which can be sold by Tesla's kindness.

But who is a paper tiger?

People's mouths can deceive people, but data can't deceive people.

On April 20th, Tesla held a conference call in the first quarter of 2023.

The financial report shows that Tesla's revenue in the first quarter reached 23.33 billion US dollars, a year-on-year increase of 24% and a quarter-on-quarter decrease of 4%; The net profit was $2,565,438 +0.3 billion, down 24% year-on-year.

Let's take a look at the sales data: Tesla delivered 423,000 vehicles in the first quarter, an increase of only 4% from the previous month, which was lower than expected; Gross profit dropped to 19.3%, the lowest since the end of 2020.

To sum up briefly, Tesla sacrificed its gross profit margin and cut prices sharply several times in a row, but did not get the expected sales growth.

This seems to be different from what we agreed?

Didn't you say that domestic products fell as soon as Tesla cut prices?

Interestingly, Musk specifically mentioned in this earnings conference call that Tesla has no demand problem.

Let's imagine, does Wang Chuanfu need to emphasize BYD's "no shortage of orders"?

As for whether you believe what Musk said, investors don't believe it anyway.

After the financial report was released, Tesla's US stock price fell, and the decline once exceeded 10%.

The price is reduced because it is not easy to sell, that's all.

In fact, both the past smart phone industry and the current new energy automobile industry have a saying that "price reduction is for people to afford" and "cheap is for making friends with users".

But it's against business common sense.

Automobile manufacturers are profit-oriented commercial entities, not charitable organizations. If they want to sell cars, they must make money, just like a real person. Any statement that price reduction is equivalent to "conscience discovery" can be characterized as anti-intelligence.

Generally speaking, there are two ways to reduce the price.

First, technological progress and scale expansion have led to a decline in costs, and terminal retail prices have also declined. Although the price has been reduced, the profit margin of manufacturers is still guaranteed. The price reduction will further stimulate sales and the overall profit will rise.

At present, only BYD dares to play this game in the new energy vehicle market, and other manufacturers may join in the future. It is an inevitable trend that the production cost of new energy vehicles will decrease, and those that cannot be suppressed will be eliminated.

Second: the sales volume is less than expected, and it is forced to exchange price for quantity. The typical representative is Tesla. Of course, there are also Mercedes-Benz, BMW, Audi and other car companies that have reduced it by 80,000-90,000.

So Musk has money and doesn't make money, and he specifically cuts prices so that the poor can afford cars? Can you believe it?

Concluding remarks

This is a commercial society, and there is not enough profit. What did the car company do for R&D? All praise for feelings and conscience is a kind of interference to the new energy industry and should be abandoned.

This article comes from the second brother, the author of the easy car number, who plays with cars. The copyright belongs to the author. Please contact the author if reproduced in any form. The content only represents the author's point of view and has nothing to do with the car reform.