On October 22, Tesla announced the third quarter financial report, the revenue and net profit both achieved a sharp increase year on year and quarter on quarter, and the company has made profits for five consecutive quarters. Tesla's sales have been growing continuously since it entered China. Among the new power car companies, It has been regarded as the target of other car companies. The "Tesla phenomenon" also reflects the reasons behind the difficulty of the new power car companies in making profits from one side.

Phenomenon 1: The first three quarters of steady increase in delivery volume, profit surge

        Tesla produced 14,500 vehicles in the third quarter, up 51% from the same period last year and 76% from the previous quarter, according to the data. Deliveries of 139,600 vehicles, up 44 per cent year on year and 54 per cent month on month, again set a new record. Among them, the output of Model 3 and Model Y reached 128,000 units, up 60% year on year and 69% month-on-month. Deliveries of Model 3 and Model Y reached 124,300 units, up 56 per cent year on year and 55 per cent month-on-month.

        Tesla reported revenue of $8.771 billion in the third quarter, up 39% from a year earlier and 45% from the previous quarter, beating market expectations of $8.478 billion with an operating margin of 9.2%, according to its official results. During the reporting period, the auto business revenue was USD 7.611 billion, with a year-on-year growth of 42% and a quarter-on-quarter growth of 47%. Operating margins in the auto business reached 27.7 per cent, up from 25.4 per cent in the second quarter. Among them, Tesla has earned a total operating income of $397 million from the sale of regulatory points. Tesla is profitable for three reasons: 1. Thanks to the stabilization of the epidemic, the Chinese market is gradually picking up. 2. Tesla's "cost reduction and efficiency improvement" strategy takes effect and starts a product price war to win the market; 3. The overall layout of the new energy automobile industry chain.

        Separately, Tesla's CHIEF financial officer reiterated tesla's goal of delivering 500,000 vehicles by 2020. According to further calculation, tesla will deliver more than 180,000 vehicles in the fourth quarter, an increase of 30% compared with the third quarter. According to its current performance, it is not difficult for tesla to deliver 500,000 vehicles in the whole year.

Phenomenon 2: High-end products, lower prices to win the market

        Tesla's initial product positioning is the high-end pure electric vehicle market. Since October 2019, the launch of the upgraded version of the domestic Model 3 standard battery drive has been accompanied by the price reduction. Until October 2020, the terminal sales price of the car has been reduced from the initial 355,800 yuan to 249,900 yuan.

        This price adjustment shows Tesla's determination to further develop the Chinese market. Musk has publicly stated that the localization rate will reach 100% by the end of 2020, and this price drop is also one of the performance of its localization rate improvement, which fully reflects the manufacturing capacity and cost advantage of Electric vehicles in China. At the same time, but also to the new force of domestic car enterprises bring great pressure.

Phenomenon three: in-depth layout, expansion of the entire industrial chain business

         Tesla not only sets its sights on products, but also makes a comprehensive layout in the fields of energy storage, power system and supercharger. In September, Tesla unveiled a number of new technologies during its "Battery Day," with the main aim of continuously reducing costs to maintain a price advantage in the market to boost sales. Tesla officially announced that by 2025, the cost of Tesla battery pack is expected to drop by 56% to $56 /kWh, and the price of Tesla pure electric vehicle is expected to drop to $25,000. In turn, the battery cost of a tesla Model S with a 100kWh battery pack, for example, would drop from $13,000 to $5,600 for a single battery, and the price of the vehicle would drop by 10%. In the case of ensuring product quality, such a large reduction in the price of bicycles, is bound to win the favor of the market, can quickly increase sales. Meanwhile, Tesla announced that it intends to expand its power battery capacity to 10GWh in 2021 and 200GWh in 2022. If tesla can achieve self-sufficiency in the future, it will not only reduce costs, but also improve the adaptability of batteries and vehicles, killing two with one kill.

       In addition to Tesla, domestic new-power car companies are also constantly financing and upgrading, making comprehensive layout in terms of products and technologies. From the perspective of the layout of the business field, the new power of car building currently has the following characteristics:

1. Continuous financing for production

        Making cars requires constant blood production to advance production. According to data from Tianyan, Nextev has raised $1.6 billion, Xiaopeng about 20 billion, and Idev about 15 billion. As most of the new power enterprises are developing new technologies and constantly promoting new energy and intelligent network, they need a lot of financing in the stages of talent introduction, technology research and development and product listing to ensure smooth production. Financing also determines the survival of new power car companies. At present, the domestic three new forces, Nextev, Xiaopeng and Weimar, are developing vigorously, and the sales growth of new energy vehicles also brings confidence to the market. It is believed that in the future, the head force can make a breakthrough and achieve steady growth.

2. Serious losses and difficult to balance income and expenditure in the short term

         In terms of profitability, including Nextev, Xiaopeng and other head car companies, New Power car companies are still in the state of not making ends meet. Nextev suffered a loss of 11.296 billion yuan in 2019, rising to 17.2%. In the future, on the basis of self-sufficiency, the new power automobile enterprises need to focus on technology research and development in order to cope with the market competition. The future competition will be more intense, and solving the core technical problems is the key to achieve profitability.

        In the future, new-energy vehicles will still be a key part of national strategic deployment. New-power vehicle enterprises need to make continuous breakthroughs in technology and upgrade products to occupy the market and ultimately achieve profits.