Rumor has it that Tesla’s price cut in China, Weilai Auto will meet a wave of backorders | TechNews

On the occasion of 2021, Tesla announced that the Model Y made in China in Shanghai will significantly lower the price, which is already cheaper than that of the local car company Weilai Automobile, which has caused a market boom.

The price of the Tesla Model Y in China has fallen to 339,000 yuan, a sharp drop from the previous pre-sale price of 488,000 yuan. It is now almost 10% cheaper than Weilai Automobile’s EC6 crossover, which has attracted Chinese. Wanted. Some public opinion pointed out that this is almost like selling Chinese cabbage. During the holidays, the Tesla store was blocked outright and even the trial price may have to be scheduled for 2 or 3 months.

According to rumors, in just 10 hours after news of the price cut, the Model Y received close to 100,000 orders, which is considerable, although this may be an overstatement. But at this breakout price, the results are unlikely to be bad, and the official Tesla website was once paralyzed. The price cut of nearly RMB 140,000 has shocked the entire market. Public opinion is concerned that China’s own manufacturers could be hit hard. Chinese media has reported that there is a wave of subscription cancellations at Weilai Auto, and the owners who originally planned to buy ES6 are Switch to Tesla, and Xiaopeng Motors may not be optimistic.

(Source: Tesla China)

However, Li Bin, the founder of Weilai Automobile, recently said that the Tesla Model Y hasn’t had much of an impact on Weilai and that the order volume hasn’t changed much. Weilai insists they trust the products, processes and services, and will not make car owners suffer or cut prices. However, even though the Tesla Model Y is smaller than the ES6, comparing prices based on its brand image is still very attractive to potential car owners. If the Chinese industry really insists on not cutting prices, I am afraid this year will be quite difficult, it can only be seen if Tesla’s production capacity can catch up with orders.

Tesla’s ability to cut prices so much is due to the fact that direct production in China can cut many costs, and in the epidemic environment, business strategies will shift to consumer acceptance. The Shanghai super factory is continuously expanding. This year’s model Y’s production capacity is expected to exceed Model 3, so this marketing strategy, which the public calls a “downsizing hit,” can be carried out. Last year, Tesla’s sales surpassed those of local Chinese auto companies, and this year I’m afraid it will be further away.

(Source of the first image: Tesla)

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