“For any car company, every choice is actually a gamble. If you win, you may be greeted by the stars and the sea; if you lose, you may face the abyss.”
After five years in the industry, I agree and believe in the opening paragraph of the article. At this moment, as the wave of electrification transformation sweeps the Chinese auto market more and more fiercely, it seems that no one can be immune. This includes the protagonists of today’s article – Tesla and BYD .
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The two new energy sectors are well-deservedly recognized as the “big devils”. Sometimes, it is interesting to string together continuous information for pondering and analysis.
Recently, through the third quarter financial reports released by the two companies, it seems that completely contradictory meanings can be read from them, and it even makes people feel that “Tesla goes left, BYD goes right.”
In other words, the former has, to some extent, “given up” on growing into a traditional new energy vehicle giant, while the latter is rapidly transforming into the Toyota and Volkswagen of the new era. There is no doubt that Musk is gambling, and Wang Chuanfu is also gambling.
It is hard to judge whether such divergence is right or wrong. As for how high Tesla and BYD will rise in the end, only time can tell.
In the following section, I would like to talk more about some of my thoughts.
“Don’t wait, the cheap cars are gone”
After converting into RMB, the market value skyrocketed by over one trillion overnight.
To be honest, it has been a long time since Tesla has been able to perform so strongly in the capital market. What is the “catalyst”? It’s simple, a surprising third quarter financial report and a rather tempting “pie” in the subsequent conference call.
Specifically, throughout July, August and September, except for the total revenue of this American new energy vehicle company not reaching the outside world’s expectation of US$25.37 billion, the two key data of net profit and gross profit margin both outperformed “analysts”.
As for the reason for making money, Tesla’s official explanation is, “Because we have reduced the cost of selling each vehicle to a historic low of approximately $35,100. Compared with the same period last year, the cost per vehicle has dropped by approximately $2,000.”
Translated, it means even more extreme cost reduction.
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