Tagged: companies

Weilai will never become the second Tesla

Weilai will never become the second Tesla

Among the car companies, Tesla and NIO, known as cutting-edge technology companies, are walking one to the left and the other to the right.

Tesla is now desperately pushing down costs and prices to popularize its production in order to obtain marginal production benefits. It is believed that he is trying to transform into a mediocre traditional car company. The advantage is that it will gain more and more recognition from the capital market. NIO is still working on stacking technology. Although it is very similar to Tesla four or five years ago, Wall Street considers it extremely dangerous.

Wei Lai closely follows Tesla

Wei Lai closely follows Tesla

Many investors believe that new energy vehicles are an emerging industry, and in the long run, the production capacity of the electric vehicle industry has room for growth. 2020 is undoubtedly the year of winter for the global automotive industry, but Tesla has ushered in a bright moment under such a dilemma, and continues to lead the field of new energy vehicles.

The financial report shows that in the first quarter of 2020, Tesla’s car delivery reached 16,700, which is almost equivalent to the sum of all other new Chinese car-making forces. The automotive business revenue reached US$5.1 billion, a year-on-year increase of 38%. It is the only company in the global new energy automotive industry that has bucked the trend.

In addition to the high-gloss Tesla, Wall Street analysts also continue to pay attention to China’s new car-making forces.

On March 2, US Eastern Time, the domestically produced NIO announced its fourth quarter 2020 financial report. Numerous overseas media, including the Wall Street Journal and Barron Weekly, are racing to report on the financial analysis of NIO. The media that has always used the word “stingy” praised it as the “Chinese version of Tesla”, and even compared it with Tesla’s various data and business models, and some analysts said that Weilai was five years ago. Tesla.

Compared with the value of Tesla 5 years ago, the delivery volume of Weilai Automobile in 2020 is still more “beatable.” Tesla delivered 17,400 vehicles in the fourth quarter of 2015, which was in line with expectations. The total annual delivery volume was 50.58 million. Weilai Automobile delivered 17,353 vehicles in the fourth quarter of 2020, and the total delivery volume for the year was 43,700.

Weilai Tesla one to the left and the other to the right

In terms of the business model adopted, Tesla has already implemented mass production on a large scale, while Weilai seems to be still following the old road of “high-end luxury and niche” at the beginning of Tesla.

In January 2021, Tesla will localize the third model in the Shanghai Super Factory, which means that a cheaper compact hatchback will sweep the two major markets in China and Europe. The launch of new models that are more affordable than Model 3 is of great significance to Tesla, which enables it to compete with Volkswagen ID.3 and Peugeot e-208 hatchbacks.

Tesla’s “prices close to the people” actually had early warnings. According to German media reports, in November 2020, Musk emphasized in conversations with investors and analysts: “If we can’t make people affordable, then our mission will fail.” He added: “Currently What bothers me most is that our car prices are not yet affordable enough for the people. This is a problem that we urgently need to solve.”

In order to save manufacturing costs, Musk adopted an aluminum casting machine called the “revolutionary machine for car body construction” in the German factory, which greatly simplified the process of assembling the integrated body frame. This machine can be said to be large-scale The first invention in the production industry,

In addition to streamlining the manufacturing process, Tesla also reduced the performance and endurance of the Model 3 power system. Even so, the slowest Model 3 can still achieve 0 to 60 mph in 5.3 seconds.

Tesla is busy reducing costs here, taking the route of being close to the people, and benchmarking Volkswagen, BYD and other market mainstays, but over there Weilai Automobile still holds high the banner of niche luxury.

Li Bin, the founder of Weilai, said: Tesla’s goal is to become a Volkswagen Ford, while Weilai sticks to its high-end positioning. Weilai Electric will sell the same price for how much BMW, Mercedes-Benz and Audi petrol cars are sold.

Can Wei Lai be tough on Tesla?

In the financial report, we can see that Tesla has gradually freed from the high-end luxury route, found its own viable business model, and achieved mass production. It is said by the industry that it has embarked on the road of maximizing investment capacity.

Analysts pointed out that Tesla can be called the “Apple” of the automotive industry. If Jobs brought Apple’s much-anticipated innovation, then his successor, Cook, brought Apple to a “down-to-earth” life. Cook formulated a business route that is more in line with the mass market for Apple, and only then has a market value of more than one trillion US dollars. Without Cook, there may not be today’s Apple. It is Cook’s ability to make Apple stable.

Musk is clearly aware of this, and Tesla is implementing an increasingly “grounded” business model. Tesla came out in 2006. At first, Musk treated Tesla’s products as luxury goods, and went high-end from products to concepts. This is contrary to the practice of many automakers promoting cars in a civilian way. However, Tesla has established an authority in the industry with sophisticated technology and unique concepts, and created an extraordinary brand influence.

Tesla has established strong brand and business barriers from vehicle manufacturing, operating systems, autonomous driving to core chips. At present, Tesla is not only satisfied with the high-end route of luxury and niche, its competitive strategy has changed to adopt a broad differentiation strategy through market segmentation of high-end buyers and low-priced buyers in the auto industry. In this model, Tesla stands out from the competition. Coupled with increasing R&D investment every year and developing a highly innovative and unique ecosystem, the rate of return is leading the way in the field of new energy vehicles. At present, this is a new force in car manufacturing. No one can do it.

In addition, Tesla provides a variety of products and services all over the world, from high-end electric cars Model S, Model 3, Model Y, SUV version of Model Y, and equipped with different cruising range, from 250 miles to 370 miles Both have different battery performance and customizable seats and storage space. This is the same as Apple’s electronic products are equipped with different product models and storage space according to the price.

In order to make Tesla more affordable, Musk has made great efforts to save battery costs. In August 2016, Musk merged SolarCit, a US company that specializes in the development of household photovoltaic power generation projects, with Tesla Inc. through research and development to reduce the cost of materials on the battery and increase the market penetration rate of products with lower prices.

In addition, Tesla will also cooperate with CATL, CATL will provide Tesla with lithium iron phosphate (LFP) batteries with lower raw material prices. This cooperation is expected to reduce Tesla’s production costs again, increase profit margins and lower sales prices. Undoubtedly, this cooperation will provide Tesla with a decisive competitive advantage in the industry.

Weilai will never be the second Tesla

Tesla has suffered losses for fifteen consecutive years, and only achieved profitability in 2018. Coincidentally, NIO has been losing money since its establishment in 2014. Although the total revenue in 2020 has increased by RMB 16.258 billion, a year-on-year increase of 107.8%, the net loss is still huge, at RMB 5.304 billion.

According to the analysis of professionals, the current situation of Weilai losing a sum of money from selling a car still continues. Up to now, Weilai still has a loss of 53,000 yuan for every car sold. Only Weilai knows the sadness of this.

Traditional automakers will adopt a model, start low-price marketing, and then develop high-end products. But in recent years, new forces in car-making have taken a completely different path. Such as broadly differentiated routes, market segmentation, and people-friendly routes.

In this regard, Tesla not only did a good job, but also made new play based on its own characteristics. On the one hand, Tesla retains high-end products and maintains its own brand effect; on the other hand, it has established factories all over the world and reduced costs as much as possible to achieve mass production of low-end products and expand sales. , Improve profit margins. Although this has returned to the sales model of traditional car companies, this return is simple and effective in terms of driving sales, increasing valuation, and return on equity.

Industry insiders pointed out that for NIO, which has been advocating benchmarking Mercedes-Benz and BMW, and taking the luxury style, it is still in the “first stage” of Tesla, that is, the stage of burning money to build brands. However, after this stage, it will usher in a cruel survival stage. It is necessary to “apply according to their aptitude” in accordance with their own corporate characteristics. This stage is also a stage that is extremely difficult to imitate. If Weilai still fails to find its own unique business model in a short period of time, it will not only face survival difficulties, but will also be abandoned by the capital market.

Xiaomi is suing the US government

The US Department of Defense announced on February 14 that it had added nine Chinese companies to its sanctions list with links to the Chinese military, including aircraft maker Comac of China and mobile phone maker Xiaomi.

China’s smartphone shipments in 2020 will drop 11 percent year-on-year to 330 million units, according to a global smartphone market research report for the fourth quarter of 2020 released by global technology market analysis and market consulting firm Canalys1 on Thursday.Xiaomi shipped 39.8 million units in the Chinese mainland smartphone market in 2020, with a year-on-year growth of 3% and a market share of 12%, ranking the fourth place and becoming the only company with a positive growth in shipments in the Chinese market with Apple.

Companies, sanctions, the economy, exports

Chinese smartphone maker Xiaomi has filed a legal complaint against the US Department of Defense and Treasury on January 29, according to publicly available court records, huanqiu.com reported on Monday citing foreign media sources.

Xiaomi has asked a US court to declare the US government’s decision to place it on an investment “blacklist” illegal, naming defence secretary Lloyds Austin and Treasury secretary JanetYellen as defendants, foreign media reported.

‘If the restrictions go into effect, Xiaomi faces imminent, serious and irreparable harm,’ the company said in a filing with the U.S. District Court in Columbia.

On January 14, the U.S. defense department announced that it will 9 companies listed in the so-called “of the communist party of China got the enterprise” list, the nine companies including comac, millet group, the micro semiconductor (AMEC), laundry list (LKCO), Beijing zhongguancun development investment center, high clouds semiconductor (GowinSemiconductor), grand China aviation (GrandChinaAir), in the target language (GTCOM) and cnac (CNAH).

If the ban goes into effect, US investors will not be able to invest in or buy shares in the companies and will have until November 11 to sell their shares in the blacklisted companies.

In addition, the potential risks of being included in the list include further investigation or subsequent restrictions imposed by the United States, enhanced export control and economic sanctions, and possible obstruction of other US-related businesses.

Mobile phone shipments growth against the trend

The US crackdown on Xiaomi and other companies has also attracted the attention of the Chinese government. Chinese Foreign Ministry spokesman Zhao Lijian responded at the time that the Trump administration has “distorted the concept of national security, abused state power and repeatedly cracked down on Chinese companies for no reason, which China firmly opposes.”

Companies, sanctions, the economy, exports

Inverse historical trend, “the us relevant ACTS contrary to the principle of consistent brand of market competition and international economic and trade rules, interfere with the normal economic, trade and investment cooperation between China and the United States, against foreign companies in the United States investment confidence, will also hurt U.S. businesses and the interests of investors, this is some people in the United States another example of the dog in the manger.”Zhao Lijian said.

Stock price firm mobile phone shipments growth against the trend

Xiaomi’s Hong Kong share price fell 10 per cent the day after the sanctions were imposed, though the company’s shares quickly rebounded.Xiaomi’s Hong Kong shares closed at HK $29.20 on Jan. 29.

The good results have supported Xiaomi’s share price.According to a research report released by market research firm Canalys, in 2020, the smartphone market shipments in the Chinese mainland fell 11 percent year-on-year to 330 million units.

In terms of branch companies, the top five manufacturers in the Chinese mainland smartphone market in terms of shipment volume in 2020 are: Huawei, OPPO, Vivo, Xiaomi and Apple.Xiaomi and Apple are the only companies with positive shipments growth in two years.

Among them, Huawei (including Honor) shipped more than 123 million units in the Chinese mainland smartphone market in 2020, down 13% year on year, and ranked first with a market share of 37%.Xiaomi shipped 39.8 million units in the Chinese mainland smartphone market in 2020, up 3% year on year, ranking fourth with a market share of 12%.Apple ranked fifth in the Chinese mainland’s smartphone market in 2020, with shipments of 34.4 million units, up 14% year on year and a market share of 10%.

China Domestic finance

The central bank launched 200 billion yuan MLF and 150 billion yuan reverse repurchase operations

The people’s Bank of China announced on November 30 that in order to maintain the stability of liquidity at the end of the month, 200 billion yuan of medium-term loan facility (MLF) operation and 150 billion yuan 7-day reverse repurchase operation were carried out. On that day, 40 billion yuan of reverse repurchase was due. In addition, the central bank also announced that it would carry out medium-term loan facility (MLF) operation on December 15 (including one-off renewal of MLF due on December 7 and 16), and the specific operation amount will be determined according to market demand and other conditions. [details]

The people’s Bank of China drafted the announcement on the revision of bond trading and circulation in the inter-bank bond market (Draft for comments)

On November 30, the website of the people’s Bank of China announced that the people’s Bank of China had drafted the announcement on Revising the bond trading and circulation in the inter-bank bond market (Draft for comments), which is now open to the public for comments. The announcement requires that on the first day of bond registration, the Central Clearing Company and Shanghai clearing house shall transmit the information of bond transaction circulation elements to the interbank lending center by electronic means; the second is that the issuer or lead underwriter shall provide the list of initial holders and holdings of bonds to the interbank lending center on the day of bond registration.

Safe starts another round of QDII quota issuance

On November 30, the State Administration of foreign exchange (SAFE) launched another round of issuance of qualified domestic institutional investors (QDII) quota, which is planned to issue US $4.296 billion to 23 institutions. This round of issuance covers funds, securities, banks, bank financing subsidiaries, trust companies and other major types of financial institutions, and takes into account the quota requirements of new institutions. Since September 2020, safe has issued three rounds of QDII quota, totaling US $12.716 billion to 71 institutions. After this round of issuance, the safe has approved 169 QDII institutions with an investment amount of US $116.699 billion.

Shanghai and Shenzhen Stock Exchange Issues measures for listing on the stock exchange

The listed companies on the new third board will soon enter the practical operation stage. The measures for listing on the stock exchange of China’s small and medium-sized enterprises (SMEs) listed on the stock exchange system of China issued by China Securities Regulatory Commission (CSRC) in June, which specifies the conditions for listed companies listed on the stock exchange of China’s small and medium-sized enterprises (SMEs) to be listed on the stock exchange of China’s science and technology innovation board or gem, restrictions on the sale of shares, listing audit arrangements and performance of listing sponsors.

The third session of the fifth session of the Chinese financial trade union held in Beijing

On November 30, the Third Plenary Session of the fifth session of the Chinese financial trade union was held in Beijing. Yan Jinghua, vice chairman of the all China Federation of trade unions, Secretary of the Secretariat, member of the Party group and chairman of the China financial trade union, Zhou Liang, member of the Party committee and vice chairman of the China Banking and Insurance Regulatory Commission, Secretary of the Party group and vice chairman of the China financial trade union (Part-time), presided over the meeting and delivered speeches. At the meeting, Liu Guiping, member of the Party committee and vice president of the people’s Bank of China, was elected as vice chairman (Part-time) of China financial trade union, and Zhang Rui and Li Lidong were elected as vice-chairman of China financial trade union. Mei Zhixiang, deputy secretary of the Party group and executive vice chairman of the China financial trade union, delivered a work report.

China’s international trade surplus in goods and services reached 315.2 billion yuan in October

According to the data released by the State Administration of foreign exchange on November 27, in October 2020, China’s income from international trade in goods and services was 1660.1 billion yuan, expenditure was 1344.9 billion yuan, and the surplus was 315.2 billion yuan. Among them, goods trade income was 1536.6 billion yuan, expenditure was 1159.3 billion yuan, surplus was 377.3 billion yuan; service trade income was 123.5 billion yuan, expenditure was 185.6 billion yuan, and the deficit was 62.1 billion yuan.

The A-share index is up and down, and the performance of “small and medium sized enterprises” is better than that of the main board

On the last trading day of November, the A-share index rose and fell, and “small and medium-sized enterprises” performed better than the main board. On the same day, the Shanghai composite index opened at 3418.16, fluctuated high in the morning, went down all the way in the afternoon, and finally closed at 3391.76, down 16.55 points or 0.49% from the previous trading day. The Shenzhen composite index closed at 13670.11, down 20.77 points, or 0.15%. The gem index rose 0.49% to close at 2631.89. The SME board index closed at 9042.47, up 0.16%. The Kechuang 50 index closed at 1385.48, down 0.16%.