No other automaker has ever lowered prices as frequently as Tesla. In just one year, the official price of the Model 3 has been slashed by more than RMB 100,000 yuan, faster than the depreciation of used cars.
On October 1, Tesla dropped the price of the Model 3 standard range upgrade to RMB 249,900 ($36,800), a drop of RMB 21,650.
The China-made Tesla Model 3 long-range rear-wheel-drive version is also priced down to RMB 309,900, a reduction of RMB 34,150.
Although Tesla responded that this was to benefit consumers, the frequent price cuts have caused dissatisfaction among existing owners. At the same time, it is widely believed that the survival of new energy vehicle companies such as NIO, Li Auto, and Xpeng will be further reduced.
Is this really the case?
It's not just once or twice that Tesla has cut prices, and the premium new energy car company, led by NIO, doesn't seem to be worried. The reason for this has to do with the difference in Tesla's positioning and the fact that it has lost its freshness.
Tesla used to be the representative of the high-end new energy vehicle brand, but the repeated price cuts of the entry-level model have lowered the threshold for customers to buy the car, but also lowered the brand image.
NIO, which has been used as a comparison with the Tesla, has now formed a clear distinction between the price of its products and its user base.
For this reason, Tesla's price cuts have not had any real impact on NIO.
According to NIO's sales figures, NIO's monthly deliveries increased again in September this year to 4,708 units, an increase of 133.2% over the same period last year. In the third quarter, NIO's total sales were 12,206 units, up a full 154.3 percent from the same quarter last year, setting another quarterly sales record.
Tesla The most immediate reason for this round of price cuts is that the cost of the power battery has been further reduced due to the Model 3 being equipped with lithium iron phosphate batteries made by CATL.
But the fact is, with the advancement of technology and the increasing rate of localization of components, this is not a problem that one company faces, but each company has different options.
Compared to Tesla's constant price reductions, NIO's means to benefit consumers through BAAS and Pilot Assist NOP updates have both reduced the cost of purchasing a car and increased brand value.
NIO is more concerned with protecting the interests of its customers and considering the issue from their perspective.
Xpeng was the one who received the biggest impact after the Model 3 price cut. It's not just a matter of time, but it's also a matter of time before Xpeng is the first to offer a price hike on the P7.
It's undeniable that Tesla's price cuts have had a positive impact on the EV market, and EV users are used to comparing Tesla and NIO when buying a car.
Today, the average price difference between the two brands' main models, the Tesla Model 3 and the NIO ES6, is already 150,000 RMB. In addition, the combined sales of the three NIO products this year have already caught up with the combined global sales of Tesla's high-end Model S and Model X.