Domestic Tesla mass production acceleration is good for supply chain and competitors

 Domestic Tesla mass production acceleration is good for supply chain and competitors

The pace of mass production of Tesla in China is accelerating. Is this good news or bad news for the domestic new energy vehicle industry? Its true that the domestic Tesla, which is going to be mass-produced with the profit promotion, will bring competitive pressure to many domestic new energy vehicle enterprises. However, as for the overall opening of the industry, Teslas domestic products will promote its development through competition.

Tesla domestic enterprises, first of all, have deep cooperation with many domestic enterprises in the upstream and downstream industries. According to incomplete statistics, 32 listed companies in A-share have entered Teslas supply chain, and 8 companies have disclosed their cooperative relationship with Tesla urgently recently. This is of course because through the development of new energy vehicle industry in recent years, China has gradually established a large-scale manufacturing and supporting industry chain, which can provide Tesla with quality and quantity products and services.

According to Teslas own brand and the demand for higher quality standards, once entering the Tesla supplier base, it means that relevant enterprises will also simultaneously improve their manufacturing process and other capabilities, and achieve scale effect under large-scale orders, so as to achieve the growth of enterprise manufacturing level, production capacity and revenue.

This is just like Apples supplier chain components in China in those days, which made a group of enterprises grow up from small to large, and even become the leader in the vertical subdivision field, such as Goethes shares starting from acoustic components; Sinwei communication starting from antenna; Lixun precision starting from connector It also promotes the continuous improvement and maturity of Chinas mobile phone manufacturing industry chain, and enables domestic mobile phone brands to benefit from a complete and high-level supporting industry chain, which can rise rapidly.

In the stock market investor forum, we can see that more and more investors pay more attention to listed companies that become Tesla suppliers. It can be imagined that the cooperation with Tesla will not only enable these enterprises to obtain more orders, its growth will also be optimistic by the capital market, the stock price rise performance is bullish, enterprises will also be able to obtain more funds for the promotion of manufacturing level, forming a positive cycle.

In the same way, Chinas new energy vehicle enterprises will certainly face Teslas competitive pressure in the terminal sales market for a period of time, but on the other hand, with the upgrading of the complete manufacturing chain of new energy vehicles, they will also deliver manufacturing processes and finished products that are in line with international advanced standards to domestic new energy vehicle enterprises, so as to accelerate the development of domestic new energy vehicle enterprises on a higher industry platform Exhibition.

Teslas domestic production target in the future is 500000 a year. For the Chinese new energy vehicle industry with annual sales of 1.2 million last year, this is about equal to an increase of nearly 40% of the overall scale to help domestic sales and exports. This will also stimulate the relatively declining car market since last year, and give new energy vehicle industry a boost.

The common sense of economics tells us that the development of an industry lies in increment rather than stock. If Teslas domestic products are welcomed by more users and bring popularity back to the market, it will also attract more capital and enterprises to join the industry. Recently, the news of domestic enterprises accelerating their entry and mass production of new energy vehicles has been heard. It can be seen that Teslas catfish effect has begun to appear.

According to reports, Tesla expects to add more than 4000 super charging piles in mainland China in 2020, double the total number of super charging piles built in the past five years. This will take the infrastructure construction of Chinas new energy vehicle industry to a higher level, and also drive other domestic new energy vehicle enterprises to invest more in this infrastructure. Just as high-speed rail construction makes Chinas railway industry rank first in the world, Tesla will also play a leading role in supporting and infrastructure construction of Chinas new energy vehicle industry.

Teslas mass production, to some extent, is expected to become the engine for the high-level opening and high-quality development of the new energy vehicle industry, which forces other domestic vehicle enterprises to improve in technology, products and other aspects, promote the higher-level development of the manufacturing chain, and constantly expand the network of technical facilities, which is absolutely more opportunities than challenges for the new energy vehicle industry in China.

u25a1 Bi Ge (Financial commentator)

Source: responsible editor of Beijing News: Wang Fengzhi, nt2541