China Market situation and outlook

[maoing]

Thanks Cankooo1. It's a BIG surprise to me for the Tesla Shanghai advancement even I followed up Chinese news so closely. But until yesterday, the Shanghai store information leaked and super charger station suddenly will be opened this week.

Maybe Guangzhou/Shengzhen store also under construction, just not leaked yet. With Beijing store only, the reported order # is 5000+. With Shanghai/Guangzhou/Chengdu store opened in 2nd or 3rd quarter, test driver available for public, first batch cars shown up on streets, the order # will be tripled at minimum, say 15000+, by end of 2014.

I talked to several of my wealthy friends in Hangzhou over the weekend. None of them made order yet, but they are well aware of Tesla presence. Giving an example of 300 miles range (480Km), their gasoline car will cost 640 RMB fuel charge, but with Model S, the electricity bill will be only 43 RMB. Also Model S has tax advantage than competitive gasoline vehicles because there is no "emission" tax which range 15-25% of the car price. There will be huge advantage of buying electrical car in China, time will prove.

I am digging for more information and by the way Tesla and Elon Musk are all over the news. There was a constant interest before but now all of the Chinese TV channels are reporting. There are many recorded videos over the internet but sadly they are in Chinese and google translate doesn’t work with video.
Just some screenshots:

View attachment 47604

I am waiting for CCTV to post the record of the conference today as it will be in English , but still nothing on their website.

 

[flyingroc]

The Chaos of Tesla China

http://translate.google.com/transla...://www.pingwest.com/the-chaos-of-tesla-china/

 

[sleepyhead]

http://translate.google.com/transla...://www.pingwest.com/the-chaos-of-tesla-china/

This reads like a Chinese FUD article on Tesla

And in fact, the basis of people's misunderstanding of the electric car is still widespread - even in Tesla fans and fans of. For example, the mileage is not enough, the battery unsafe and so on.

edit: on second thought, this might not be a good example of FUD. But the vast majority of the article that I read sounded like a Seeking Alfa FUD article on Tesla.

I did find one interesting bit in the article though:

At the end of 2013 Tesla orders in China has more than 5,000 orders


So, I would imagine that there is a lot more orders by now

- - - Updated - - -

How is Tesla perceived in China? I see these negative articles, but what is the overall picture of Tesla in China?

Is it positive, overwhelmingly positive, neutral, slightly negative?

Any info on this topic from our Chinese TMC members would be greatly appreciated...

 

[macman]

This does not look like FUD article to me. It's more like previous general manager Mr. Chang's tell all. A lot of information on politics inside Tesla China. Few interesting points. Mr. Chang who was appointed by Blankenship was purposely pushed out by new VP Veronica Wu who was appointed by Jerome. Besides show room sales and Internet sales, Wu puts a lot of efforts on fleet sales and door to door sales. Tesla China's number one focus is on delivery right now. Not sales. Because service center is not been built fast enough, they can't deliver the car to the people outside of Beijing and Shanghai. I think that's why they are not attending Beijing auto show.

Tesla has very positive perception in China because the car itself, the image of Elon as Iron Man and the fair price. I'm not worry about the order in China. Delivery is the problem.

This reads like a Chinese FUD article on Tesla

And in fact, the basis of people's misunderstanding of the electric car is still widespread - even in Tesla fans and fans of. For example, the mileage is not enough, the battery unsafe and so on.

edit: on second thought, this might not be a good example of FUD. But the vast majority of the article that I read sounded like a Seeking Alfa FUD article on Tesla.

I did find one interesting bit in the article though:

At the end of 2013 Tesla orders in China has more than 5,000 orders


So, I would imagine that there is a lot more orders by now

- - - Updated - - -

How is Tesla perceived in China? I see these negative articles, but what is the overall picture of Tesla in China?

Is it positive, overwhelmingly positive, neutral, slightly negative?

Any info on this topic from our Chinese TMC members would be greatly appreciated...

- - - Updated - - -

Looks like Elon will be doing the delivery in Shanghai on 23rd after 22nd Beijing delivery.

 

[Cankooo1]

Thanks Cankooo1. It's a BIG surprise to me for the Tesla Shanghai advancement even I followed up Chinese news so closely. But until yesterday, the Shanghai store information leaked and super charger station suddenly will be opened this week.

Maybe Guangzhou/Shengzhen store also under construction, just not leaked yet. With Beijing store only, the reported order # is 5000+. With Shanghai/Guangzhou/Chengdu store opened in 2nd or 3rd quarter, test driver available for public, first batch cars shown up on streets, the order # will be tripled at minimum, say 15000+, by end of 2014.

I talked to several of my wealthy friends in Hangzhou over the weekend. None of them made order yet, but they are well aware of Tesla presence. Giving an example of 300 miles range (480Km), their gasoline car will cost 640 RMB fuel charge, but with Model S, the electricity bill will be only 43 RMB. Also Model S has tax advantage than competitive gasoline vehicles because there is no "emission" tax which range 15-25% of the car price. There will be huge advantage of buying electrical car in China, time will prove.

It was surprise for me as well as it is a big advancement and as far as I know the team in China is still small.
It is really nice that that here are people like you on TMC with connections and understanding of Chinese market and culture. It is really important as there are many cultural differences. Personally I am working for a long time with Chinese companies but most my friends are from Shenzhen.
I am also keeping an eye on Chinese media but by the way I saw many different reservation numbers. I believe they are just guesses as Tesla will no share this information publicly.

- - - Updated - - -

Elon has delivered first cars personally to some of the most influential and successful people in China.

The list includes:
Sina Corp.(one of the biggest online media companies in China) CEO Charles Chao
the famous CCTV TV Producer Zhang Han
Times Group President Wang Xiaolan
Xu Liang, chairman of Capital One,
president of Automotive Lee family thought Lifan Football Club chairman Yin Xi ,
Chairman of the Board and CEO of the holding wandering Wang Dongfeng,
UC excellent, as Chairman and CEO Yu Yongfu,

I may post too many photos but I want to keep the record for illustrational and
historical purposes.

 

[Zaxxon]

Post as many photos as you like!

 

[eepic]

Post as many photos as you like!

+1 in fact, please do post more, it's great to see more pics from the china events with the crowd and all!

 

[Cankooo1]

Internet is floating right now: articles, blogging, social media TV. Even Tesla will be general topic tonight for popular Chinese show in prime time.

Some more photos

In social Mediaosts in Weibo from celebrities containing Tesla as keyword

And by the way I saw one really interesting title: something like “Iron Man will deliver first model S by himself in China ”

 

[FluxCap]

AWESOME. Thank you. cankooo1 for the great pics!

 

[GasDoc]

A Chinese friend of mine, knowledgeable of the car industry, says that one problem Tesla will face is with the registration issue.

He tells me that the Model S will get a yellow license plate, like buses, and people don't like this because of mandatory yearly inspections. And apparently there are no HOV type commuter benefits associated with this plate.

The "normal" car plate is blue. Domestically produced EV's get blue plates. He says this looks like government protection.

Can anyone with firsthand knowledge of these issues chime in?

 

[Cankooo1]

A Chinese friend of mine, knowledgeable of the car industry, says that one problem Tesla will face is with the registration issue.

He tells me that the Model S will get a yellow license plate, like buses, and people don't like this because of mandatory yearly inspections. And apparently there are no HOV type commuter benefits associated with this plate.

The "normal" car plate is blue. Domestically produced EV's get blue plates. He says this looks like government protection.

Can anyone with firsthand knowledge of these issues chime in?

I still do not understand clearly the issue with the plates. BUT:
This is the first Tesla seen on the road in China. The plate is blurred but definitely it’s blue

 

[GasDoc]

I still do not understand clearly the issue with the plates. BUT:
This is the first Tesla seen on the road in China. The plate is blurred but definitely it’s blue

Great pickup! I hope this is the case.

Can you confirm that in China the end user, not the dealer/seller, is responsible for getting the registration and plate?

 

[Electroman]

I found this comment in one of the Yahoo boards, and it was a bit funny but with some dose of reality in it:

"Tesla factory workers must now be pretty excited to be building luxury cars for Chinese factory owners who pay 12 year old girls a dollar a day to work 12 hour days, 7 days a week to make blue jeans and sneakers. Those Chinese owners have made their millions and they deserve a nice new Tesla made by underpaid American workers"

 

[farzyness]

I found this comment in one of the Yahoo boards, and it was a bit funny but with some dose of reality in it:

"Tesla factory workers must now be pretty excited to be building luxury cars for Chinese factory owners who pay 12 year old girls a dollar a day to work 12 hour days, 7 days a week to make blue jeans and sneakers. Those Chinese owners have made their millions and they deserve a nice new Tesla made by underpaid American workers"

Right - so let's ban people from buying American products! /s

 

[maoing]

Agree, there is no "yellow" plate issue.

There is a rumor to be confirmed by tomorrow Shanghai delivery event. http://club.autohome.com.cn/bbs/thread-c-2357-29445264-1.html

It says, unlike Beijing there is no advantage to get a license plate for tesla owner, but in Shanghai, the license plate will be free (cost ~16K USD or 100K CHY) for new energy car like tesla. This rumor has already been there for quite a while that local government (Shanghai and Hangzhou municipal etc.) tends to give some "promotion" such as subsidy and license plate fee waiver.

I still do not understand clearly the issue with the plates. BUT:
This is the first Tesla seen on the road in China. The plate is blurred but definitely it’s blue
View attachment 47648

 

[GasDoc]

Agree, there is no "yellow" plate issue.

There is a rumor to be confirmed by tomorrow Shanghai delivery event. http://club.autohome.com.cn/bbs/thread-c-2357-29445264-1.html

It says, unlike Beijing there is no advantage to get a license plate for tesla owner, but in Shanghai, the license plate will be free (cost ~16K USD or 100K CHY) for new energy car like tesla. This rumor has already been there for quite a while that local government (Shanghai and Hangzhou municipal etc.) tends to give some "promotion" such as subsidy and license plate fee waiver.

I hope that it's true that the Model S will get blue license plates.

My friend, who exports cars to China and has a dealership there says that there is currently no box to check for imported EV's so there is no set regulation on yellow vs blue plate. He saw an interview with Elon and says there was a Model S with a yellow plate. Now we have a pic of one on the road with a blue plate. I hope that Tesla watchers in China can keep us up to date on whether this is an issue.

What would really be nice would be "green" plates with lots of EV incentives. China really needs to get the pollution issue under control

 

[CalDreamin]

A Chinese friend of mine, knowledgeable of the car industry, says that one problem Tesla will face is with the registration issue.

He tells me that the Model S will get a yellow license plate, like buses, and people don't like this because of mandatory yearly inspections. And apparently there are no HOV type commuter benefits associated with this plate.

The "normal" car plate is blue. Domestically produced EV's get blue plates. He says this looks like government protection.

Can anyone with firsthand knowledge of these issues chime in?

Here's a pic from yesterday's coverage in Beijing, showing a Model S with a blue plate
http://club1.autoimg.cn/album/userphotos/2014/04/22/500_8205934f-4251-4e50-9ab4-d50bd213d1dc.jpg

 

[Cankooo1]

Science and Technology Minister- Wan Gang and Minister of Industry - Miao Wei met with Tesla CEO Eilon Musk

Wan Gang said that the Chinese government is considering reforms in the tax aspects of electric vehicles, such as import tariffs will be different from the traditional car imports, but the specific details are still under development.

Chinese government is now formulating policies to help companies like Tesla, like entering China, promote the development of electric vehicle industry in China.

Tesla is willing to negotiate opening the Supercharging stations for local government and corporations to help accelerate EVs in China

http://finance.sina.com.cn/chanjing/gsnews/20140423/180318898072.shtml

 

[Cankooo1]

I do not know why I am the only one excited here. It has a tremendous outcome for Tesla in China. The government officials met with Elon Musk. Both are really important Government structures.
The Chinese prime Minister officially “declare war on pollution” and Ministers for responsible administrations met with Elon Musk which indicate that Tesla may be important tool in this war. May be we are used to hear so many things from our politicians and they used to talk more than they do. Chinese government has completely different approach for a long term planning. When they said war this means war!

 

[Chickenlittle]

I do not know why I am the only one excited here. It has a tremendous outcome for Tesla in China. The government officials met with Elon Musk. Both are really important Government structures.
The Chinese prime Minister officially “declare war on pollution” and Ministers for responsible administrations met with Elon Musk which indicate that Tesla may be important tool in this war. May be we are used to hear so many things from our politicians and they used to talk more than they do. Chinese government has completely different approach for a long term planning. When they said war this means war!

your not alone. down day limits enthusiasm here. this board is for the most part bipolar. very large mood swings depending on what the stock is doing on a daily basis. its been a hard month for most but earnings report is around the corner. will see more clarity then. this is the history of tesla price movements. trading and decreasing as earnings approach. if it follows tradition there will be a large decrease the day earnings are released (not the next trading day as some have interpreted this statement in the past)