"Greatly Respected... Most Competitive in the World"
Company Name Not Mentioned... Sales Increase After Price Reduction
Tesla CEO Elon Musk has once again praised 'Chinese electric vehicles.'
According to foreign media reports including Reuters on the 26th (local time), Musk said during a conference call held after Tesla's Q4 earnings announcement the day before, "Chinese electric vehicle companies work the hardest and smartest," adding, "I have great respect for Chinese (electric) car companies. Chinese companies are the most competitive in the world."
He emphasized, "Tesla's China team is winning (in the electric vehicle market)," but also said, "It is most likely that a Chinese company will become the second after Tesla."
He continued, "We believe we can attract the best talent in China, and we hope that (talent recruitment) continues."
However, Musk did not name any specific company.
Among Chinese electric vehicle companies, BYD (比亞迪·BYD) maintains the lead, while the EV startup 'trio' Weilai (蔚來·Nio), Xiaopeng (小鵬·Xpeng), and Lixiang (理想·Li Auto) each produce more than 10,000 electric vehicles annually.
Tesla operates a manufacturing plant in Shanghai, one of the major electric vehicle markets in China.
In 2021, Musk praised Chinese automotive industry workers as "the most competitive in the world," and last year during the COVID-19 lockdown, he commended Tesla's China division for operating the Shanghai factory, saying they "worked overnight even at 3 a.m."
Tesla Accelerates Rapidly in Chinese Market After Price Cuts
Meanwhile, Tesla's sales in China surged after recent price reductions.
According to data from Zhaoyin International under China Merchants Bank, Tesla's sales volume in China from the 9th to the 15th reached 12,654 units, a 76% increase compared to the same period last year.
Some local media reported, "Within three days after the price cut, purchase orders in China exceeded 30,000 units," and "the delivery cycle for Model Y extended from 1?4 weeks to 2?5 weeks," with news also stating that orders increased 4 to 5 times compared to before the price hike.
On the 6th, Tesla lowered the sales prices of Model 3 and Model Y in China to 229,900 yuan (approximately 42 million KRW) and 259,900 yuan (47 million KRW), respectively, representing a 6?13.5% reduction from previous prices.
For Model Y, this price is about 43% cheaper than the U.S. sales price.
Previously, Tesla had been offering a 10,000 yuan incentive for vehicle purchases since September last year, and in October, it reduced sales prices by up to 9%.
Tesla's price cuts are analyzed as an effort to recover its declining market share in China.
Last year, Tesla lost the top sales spot to BYD, and in December last year, deliveries of newly produced vehicles in China decreased by 44% and 21% compared to the previous month and the same period last year, respectively.
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