China Market situation and outlook

[Jack6591]

Musk: China Will Pass U.S. as Biggest Tesla Market: Video - Bloomberg

I'm 58 years old. When I was a boy in the sixties (the wonder years) America was the greatest country in the world. We had leaders that were revered, we made huge technological achievements, and reached for the stars.

Elon Musk.........is the new America.

 

[Auzie]

I prefer to think that EM represents new world, not just one country. America does deserve a lot of credit though.:wink:

 

[kenliles]

I prefer to think that EM represents new world, not just one country. America does deserve a lot of credit though.:wink:

+1 well said
we'll take our earned credit, but more than ever this is an inter-connected world where all participants are equally vital. It's now become a global stage with many lead actors, and a massive supporting cast

 

[Jack6591]

I prefer to think that EM represents new world, not just one country. America does deserve a lot of credit though.:wink:

Is America the greatest country in the world? In many respects I would say they answer to this question is: "No, America is not the greatest country in the world."

However, the underlying strength of America is that the finest people from all over the globe come to America. It is the creativity, innovation, and invention of the brightest people on the planet that define good old American ingenuity. We are no doubt one world, but America claims Elon Musk and his kind as our own.

America is the greatest country in the world.

 

[kenliles]

However, the underlying strength of America is that the finest people from all over the globe come to America. It is the creativity, innovation, and invention of the brightest people on the planet that define good old American ingenuity. We are no doubt one world, but America claims Elon Musk and his kind as our own.

Interestingly Elon would agree with you. In his most recent interview asked about it he concurred... Paraphrasing: Startup business, American reigns supreme (especially for technology based); and our most lacking improvement relative to other countries is immigration policy reform to retain the talent we educate. Which in itself speaks to incredible world wide talent base. Much more could be said of course, but don't want to stray too far from China thread.

 

[Auzie]

Is America the greatest country in the world? In many respects I would say they answer to this question is: "No, America is not the greatest country in the world."

However, the underlying strength of America is that the finest people from all over the globe come to America. It is the creativity, innovation, and invention of the brightest people on the planet that define good old American ingenuity. We are no doubt one world, but America claims Elon Musk and his kind as our own.

America is the greatest country in the world.

I am only trying to make EM a citizen of the world, not questioning America's greatness. Its greatness is tested every day and people vote with their feet (or passports).

There must be something great about the country that enabled both Nicola Tesla and Elon Musk and many others, equally deserving individuals, to achieve in all areas of science and technology.

 

[TSLAopt]

I am only trying to make EM a citizen of the world, not questioning America's greatness. Its greatness is tested every day and people vote with their feet (or passports).

There must be something great about the country that enabled both Nicola Tesla and Elon Musk and many others, equally deserving individuals, to achieve in all areas of science and technology.

yes, we are not perfect but seem to be the best country for fostering and cultivating creative geniuses combined with entrepreneurship

 

[kenliles]

I am only trying to make EM a citizen of the world, not questioning America's greatness. Its greatness is tested every day and people vote with their feet (or passports).

There must be something great about the country that enabled both Nicola Tesla and Elon Musk...

I agree. We can rightfully claim EM as a host of preference, but that claim alone is empty. I think EM himself would claim humanity as 'owner' of his accomplishments. All positive contributors have claim to his and other accomplishments. It's one world now, and Tesla (and others) are working together to improve it.

 

[AlMc]

I was rereading the information on this thread this morning and started trying to summarize what has been posted. I believe it is fair to assume that China will be the most important market for TM. By 2020 Chinese car sales will reach 40 million (half of the world production)

Buzz: In China TM won 'Best Innovative Technology Product' and 'Annual Most Talked About Brand'
First adopters in China was a 'who's who' list of Techies and Chinese elite
EM is an icon: Iron Man in China

Demand: EM suggests that China will take up a minimum of 25% of worldwide production with wait times being up to a year
Several car leasing companies in China have placed orders for 100 (at least 2) and up to 1,000 (at least 1)

Charging: The Chinese government through the National Grid Company has committed funds to establish at least 197 charging stations.
TM has already opened several SCs and is partnered with Hanergy Global Solar to install solar car ports for their SCs
Appears that TM delivering out of reservation order to make sure each customer has access to charging (installing at their garage or parking space)

Incentives: Special custom preferences given to TM to cut the 'declaration to release' of their cars to 24 hours
License plate waiver fee in Shanghai for 3,000 plates for TM cars saving 48 million dollars for customers

Future: Talk of waiver of some/all import tax on EVs
Talk of opening a 'factory' (battery/car production?) facility in China within 3-4 years (Gen 3?)
Talk of additional EV incentives in other providences
General commitment in China to incentivize EVs/Renewable energy

 

[macman]

Here is the link http://cctv.cntv.cn/lm/duihua/ to the video that Elon was interviewed by Chinese state run TV while he was in China. Nothing we don't already know. Just for someone who's interested.

 

[hobbes]

Great, thanks. Does this streaming service somehow allow subtitle translations like youtube, so I can understand the questions?

 

[Cankooo1]

I want to report one more high level meeting of Elon Musk in China. This time it is with
Shanghai Mayor Yang Xiong

Shanghai Municipal Government will help to promote the use of clean and sustainable energy. Shanghai is also willing to support Tesla to achieve his vision.
They are also pleased to support building of Superchargers in Shanghai.
http://auto.qq.com/a/20140429/022468.htm

The 3000 free license were also announced. The system in Shanghai for distributing plates is auction type where the starting price is $12 000. Tesla owners will not need to attend the auction. The department of transportation was instructed to manage the process with Tesla.

 

[kenliles]

thank you Cankooo1 - that looks to be a very important ice breaker relationship; you're postings very much appreciated

 

[GasDoc]

I read this Motley Fool article today, discussing Tesla Motors short and long term branding strategy in China. It's a good read. They do a good job detailing the delicate balance that TM has to play between offering the Model S for a "fair price" while positioning and branding the Model S as a luxury car.

Tesla Motors, Inc. and Boutique Branding in China

 

[Cankooo1]

In this post I am not going to post countless links and pictures but just my overview impressions of monitoring Chinese market.

The results are unbelievable and they exceeded even my expectations. If Tesla has to pay for each publication followed by the visit of Elon Musk the amount could exceed advertising budget for all other brand combined. The growth in the attention and the buzz is exponential in my observation. The social media is exploding, the articles are raining. Tesla is definitely the hot topic in China. The reason: No one has ever have this kind of approach to Chinese customers like Elon and Tesla. I am finding myself lost in so many publications articles and media. People are posting photos from test drives fascinated, expressing the driving experience as “mind-blowing”. Extended reviews are also coming and they are not different than what every Tesla owner is experiencing every day. There is a wide discussion from the technology to the strategy, from fires to shields, from pricing to the future of Tesla and almost each aspect of the car and the company. Waiting time is widely discussed but it definitely makes celebrities getting abscessed.

This approach is forming advantages over the foreign competitors the results of which are visible now but the real effect will come in longer term. I believe we are approaching the point of no return.
The Chinese do not know who is the CEO of BMW or Mercedes. At the same time Elon Musk is getting more and more magazine covers and titles.

Something which is really important for me and it was a big concern: Chinese protectionism for local brands. This also is vanishing as Tesla is stating without hesitation, that they will open local factories, making more investment China than they will earn for a long time (exactly the opposite of the other foreign brands are doing). There is statement from Tesla ”we are not competing with local manufacturers like BYD, our real competitors are the foreign brands ”
Talking about the pricing I have stumbled on something really interesting which express really nice the pricing move: All luxury cars in China with their noble behavior of price bubbles, now BMW is crying, Mercedes-Benz is crying more.

At the same Time Tesla is organizing more and more small but effective events.

I do remember First article which I have read in Chinese for Tesla: The title was: Tesla will receive special treatment from Chinese government. I was skeptical but actually the move for providing the incentive with free plates were really bold from the government and has never been done before for foreign company. It was also discussed but surprisingly the concern is not why tesla has it, but what if other brands can try benefit from it.

And I will finish with one really popular story from the news about a person who saw that even the list for test drives in China are so long that he decided to let his Tesla for test drives day renting and exhibitions: he earned around of $95 000 for the first month and his car is booked until end of June.

 

[eepic]

In this post I am not going to post countless links and pictures but just my overview impressions of monitoring Chinese market.

The results are unbelievable and they exceeded even my expectations. If Tesla has to pay for each publication followed by the visit of Elon Musk the amount could exceed advertising budget for all other brand combined. The growth in the attention and the buzz is exponential in my observation. The social media is exploding, the articles are raining. Tesla is definitely the hot topic in China. The reason: No one has ever have this kind of approach to Chinese customers like Elon and Tesla. I am finding myself lost in so many publications articles and media. People are posting photos from test drives fascinated, expressing the driving experience as “mind-blowing”. Extended reviews are also coming and they are not different than what every Tesla owner is experiencing every day. There is a wide discussion from the technology to the strategy, from fires to shields, from pricing to the future of Tesla and almost each aspect of the car and the company. Waiting time is widely discussed but it definitely makes celebrities getting abscessed.

This approach is forming advantages over the foreign competitors the results of which are visible now but the real effect will come in longer term. I believe we are approaching the point of no return.
The Chinese do not know who is the CEO of BMW or Mercedes. At the same time Elon Musk is getting more and more magazine covers and titles.

Something which is really important for me and it was a big concern: Chinese protectionism for local brands. This also is vanishing as Tesla is stating without hesitation, that they will open local factories, making more investment China than they will earn for a long time (exactly the opposite of the other foreign brands are doing). There is statement from Tesla ”we are not competing with local manufacturers like BYD, our real competitors are the foreign brands ”
Talking about the pricing I have stumbled on something really interesting which express really nice the pricing move: All luxury cars in China with their noble behavior of price bubbles, now BMW is crying, Mercedes-Benz is crying more.

At the same Time Tesla is organizing more and more small but effective events.

I do remember First article which I have read in Chinese for Tesla: The title was: Tesla will receive special treatment from Chinese government. I was skeptical but actually the move for providing the incentive with free plates were really bold from the government and has never been done before for foreign company. It was also discussed but surprisingly the concern is not why tesla has it, but what if other brands can try benefit from it.

And I will finish with one really popular story from the news about a person who saw that even the list for test drives in China are so long that he decided to let his Tesla for test drives day renting and exhibitions: he earned around of $95 000 for the first month and his car is booked until end of June.

another great update, thanks cankooo1!

 

[GenIIIBuyer]

I will add a tid-bit. The pricing mark ups that BMW and Mercedes charge in China are exorbitant, and think they know the writing is on the wall that they can't last forever.

A friend of mine is in the business of buying BMW/Mercedes in the US, and shipping to China. A very profitable export business. The US dealers try to prevent this by keeping a "do not sell" database. Can only buy a few cars before being put on the list. Needless to say, much of my friend's time is sent recruiting buyers and stepping them through the process.

 

[FluxCap]

Cankoo1, thank you!

I think about two things from your post:

1) One of the most important things Elon is showing to Chinese people and customers is -- RESPECT. It's hard to overstate how important this is. It will mean great things for Tesla.

2) I should ship my Model S to China, rent it out for test drives, and use the money to buy some Tesla calls.

 

[TSLA_Hopeful]

Great job as always Cankooo1. Also, I been on the Model S design studio fantasizing about being able to buy one, and I noticed that the S60 model delivery time went from June to Late July just in the span of 2 weeks. I think it's one of the first signs that China demand is really impacting delivery times in a significant way . If anybody else saw that feel free to chime in too.

 

[GasDoc]

I will add a tid-bit. The pricing mark ups that BMW and Mercedes charge in China are exorbitant, and think they know the writing is on the wall that they can't last forever.

A friend of mine is in the business of buying BMW/Mercedes in the US, and shipping to China. A very profitable export business. The US dealers try to prevent this by keeping a "do not sell" database. Can only buy a few cars before being put on the list. Needless to say, much of my friend's time is sent recruiting buyers and stepping them through the process.

I know someone in this business as well; a Chinese national living here. He bought a $2.8M house and a Bentley in cash yet needed me to help him get an iPhone when the new model came out because he had no credit. LOL.

Range Rovers from Chinese dealers go from $400k-$500k. US price is about $110k
BMW X5's go for $150k+. $60k here.
Likewise MB and Porsche Cayenne's are marked up a ton there.

Tesla is doing the right thing with their fair pricing. The Chinese aren't dumb. They'll realize that they are being gouged by the other manufacturers and that bubble will pop soon.