April 3,$Tesla (TSLA.US)$China officially announced a limited-time low-interest replacement policy for Model 3/Y models, and introduced a “zero interest” preferential policy for car purchases in installments for the first time.

If you order the latest Model 3/Y model before the end of April, you can enjoy 3 years of 0 interest or 5 years of ultra-low interest for up to 5 years. Take 3 years and 36 interest-free terms as an example. If you pay 79,900 yuan, you can get a Model Y, and the maximum daily payment is only 171 yuan.

If you participate in the official exchange, you can enjoy a preferential policy of 0 interest for up to 5 years or a better ultra-low interest rate for 5 years. After the residual value of the old car used to replace the down payment is paid off, you can even enjoy “0 down payment, 0 interest” to buy a car. In addition, through Tesla's official replacement, you can also enjoy a 90-day free trial of the enhanced autonomous driving assistance function (EAP) worth 32,000 yuan, a 14-day insured service, and a 14-day commute guarantee.

After 3 months of “price cuts” 3 times, Tesla raised prices globally

It is worth noting that not long ago, Tesla suddenly announced that the Model Y model will usher in a 5,000 yuan price increase. However, prior to this round of price increases, Tesla had “three consecutive price drops” in the Chinese market. For the first 3 months, it carried out car price reduction or preferential subsidy activities every month.

In 2024, Tesla took the lead in starting a price war in the Chinese market. On January 12, Tesla China's official website was updated to adjust the price of the Model 3/Y rear-wheel drive version and long-range version, which ranged from 6,500 yuan to 15,500 yuan. After the adjustment, the starting price of the Model 3 was 245,900 yuan, and the starting price of the Model Y was 258,900 yuan.

On February 1, less than a month after officially announcing the price reduction, Tesla once again announced a limited-time offer. According to Tesla's official Weibo, if you order any Model 3/Y/S/X model and deliver it before the end of March, the annual rate can be as low as 2.5%. If you order an existing model of the Model Y, you can enjoy a cash reduction of 8,000 yuan.

On March 1, Tesla officially announced a triple discount. If you buy an existing Model 3 rear-wheel drive version and Model Y rear-wheel drive version, you can enjoy a limited-time current car insurance subsidy of 8,000 yuan. At the same time, you can also enjoy designated car paint discounts and low financial interest discounts. Take buying an existing Model Y rear-wheel drive model as an example. The current car's low interest discount can save up to 16,600 yuan, and the maximum discount for selected car paint is 10,000 yuan. Plus an insurance subsidy of 8,000 yuan, the total car purchase benefit is as high as 34,600 yuan.

However, since mid-March, Tesla's global pricing policy has changed. On March 15, Tesla announced that from April 1, the price of selling all versions of the Model Y in the US will increase by 1,000 US dollars (about 7199 yuan). On March 18, Tesla Europe and the Middle East announced that it will raise the price of the Model Y in several European countries on March 22, an increase of about 2,000 euros (about 15,600 yuan) or the equivalent in local currency.

Judging from this round of price increases, Tesla's price increase in the Chinese market is significantly smaller than in the European and American markets. The reason behind this is that the production efficiency and automation level of Tesla's Shanghai Gigafactory have continued to upgrade, working with local Chinese parts manufacturers to reduce automobile costs.

At the first China International Supply Chain Promotion Expo held from the end of November to the beginning of December 2023, Tao Lin, Tesla Global Vice President, said, “Currently, the localization rate of components in the Shanghai Gigafactory has exceeded 95%, and the automation rate has reached more than 95%. Tesla alone has signed more than 400 local first-tier suppliers, of which more than 60 suppliers have already entered Tesla's global supply chain system.”

At the same time, Tesla's price increases in Europe and the US are more aggressive, which is also affected by the competitive pattern in the market. According to the First Shanghai Securities Research Report, in markets other than China, Tesla's main electric vehicle rivals such as Ford, GM, Lucid, and Rivian are all showing losses one after another, freeing up more market space for Tesla.

The price policy was adjusted 4 times in 4 months, which is also a reflection of Tesla's right to independent pricing. Some industry insiders told reporters that Tesla, which can be called a “benchmark” in the fields of production technology, sales service, and brand influence, already has a “voice” in industry pricing.

Sales declined in the first quarter, Musk spoke out

On Tuesday local time, Tesla opened and crashed. At one point, it fell more than 6% in the intraday period, and fell nearly 5% by the end of the day.

According to the news, according to the latest data released by Tesla, 433,371 cars were produced in the first quarter, and about 38,6810 cars were delivered. Of these, a total of 412,376 Model 3/Y models were produced and 369,783 were delivered. 20,995 other models were produced, and 1,7027 units were delivered. In response, Tesla explained in the report that part of the reason for the decline in sales is that production of the updated Model 3 at our Fremont factory is in the early stages, and that the factory was closed due to transportation diversions caused by the Red Sea conflict and the Berlin Gigafactory arson attack.

Furthermore, according to Tesla's official website, financial results for the first quarter of 2024 will be announced after closing on April 23, 2024 (Tuesday).

After the Tesla report was released, Wedbush analyst Dan Ives said, “Although bad conditions have been anticipated until the first quarter, this is a disaster that is difficult to explain. Musk must reverse the situation, otherwise it will disrupt Tesla's long-term development.”

On the afternoon of April 3, Musk posted on X in response to Tesla investors' criticism of the company's declining sales in the first quarter, and compared the sales volume of Chinese competitor BYD.

On Tuesday local time, Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management Company, lashed out at Tesla's poor performance in the first quarter and believed that Musk was solely responsible for this, and that it was his “harmful behavior” that prevented Tesla cars from being sold.

In response, Musk said, “BYD's sales volume dropped 42% from the previous quarter. This quarter has been very difficult for everyone.”

Editor/Somer