Keep moving! What are the expected itineraries for Musk's late night visit to Shanghai's super factory?

Tech 2023-06-01 08:57:15 Source: Network

Musk's journey in China can be described as' non-stop '.At 21:26 Beijing time on May 31, Tesla CEO Musk's private plane landed at Shanghai Hongqiao Airport

Musk's journey in China can be described as' non-stop '.

At 21:26 Beijing time on May 31, Tesla CEO Musk's private plane landed at Shanghai Hongqiao Airport. Three hours later, at 0:28 am on June 1, Tesla Global Vice President Tao Lin posted two group photos of Musk and employees on Weibo, with the text "Thank you all for your support! Received a full day!", located at Tesla's Shanghai Super Factory.

Not long after, Tao Lin also posted a group photo of Musk and her employees on her social media, with the caption: "Exciting day! Always maintain a childlike heart, happy Children's Day

Following his visit to the Shanghai Super Factory in early 2020, Musk visited China again after three years. Based on the information currently released, it can be said that the itinerary is full.

On May 30th, Musk arrived in Beijing. On that day, State Councilor and Foreign Minister Qin Gang met with Musk in Beijing.

On May 31st, Minister of Industry and Information Technology Jin Zhuanglong met with Musk in Beijing, exchanging views on the development of new energy vehicles and intelligent connected vehicles. Minister of Commerce Wang Wentao met with Musk and the two sides had extensive and in-depth exchanges on topics such as Sino US economic and trade cooperation and Tesla's development in China. Ren Hongbin, President of the China Council for the Promotion of International Trade, met with Musk and exchanged in-depth views on promoting cooperation in the new energy industry between China and the United States, strengthening exchanges and cooperation between the Chinese and American business communities, and hosting the first China International Supply Chain Promotion Expo.

Musk's visit to China has received widespread attention from people from all walks of life, both domestically and internationally. Even "What did Musk eat on his first day in Beijing" has been on Weibo's hot search.

On the first day of Musk's visit to China, Tesla's stock rose in response. Tesla's stock price surged 5% at the opening on May 30th local time, and then slightly declined. As of the close of the 30th, it still rose by 4.14%. Tesla closed slightly higher by 1.38% on May 31st.

The rise in Tesla's stock price is actually a vote by the market and capital on Musk's visit to China, and it is also a affirmation of Tesla's firm investment in China.

Tesla has not disclosed the specific itinerary of Musk this time, but the industry expects that Musk's visit may be aimed at promoting the production of the new Model 3 and expansion of the Shanghai Super Factory in Shanghai, as well as the upcoming Tesla Shanghai Energy Storage Super Factory, and paving the way for the implementation of FSD (fully autonomous driving) technology and energy storage products in China.

Deeply cultivate the Chinese market and share development opportunities

530Deeply cultivate the Chinese market and share development opportunities

Musk's statement during his visit to China was highly symbolic.

When Qin Gang met with Musk, Musk stated that the interests of the United States and China are intertwined, just like the inseparable relationship between conjoined babies. Tesla opposes "decoupling and chain breaking" and is willing to continue expanding its business in China and sharing development opportunities in China.

When Wang Wentao, Minister of Commerce, met with Musk, Musk agreed that the US China relationship is not a zero sum game, thanked the Chinese side for providing support and security to Tesla's Shanghai factory during the COVID-19, praised the vitality and potential of China's development, was full of confidence in the Chinese market, and was willing to continue to deepen mutually beneficial cooperation.

Is the automotive business still the center of gravity, or will it unveil the new Model 3?

Many industry insiders speculate that Musk's visit to Shanghai may unveil the new Model 3.

Although the new Model 3 is not a brand new model, but a facelift model, it still holds great significance for Tesla, which has not launched a new product for a long time. This model is highly anticipated by Musk, who believes that the new Model 3 can compete more effectively with Chinese competitors.

The Model 3 is Tesla's first mass-produced model for the mass market, which has made significant contributions to Tesla's profitability. But it has been 7 years since Tesla Model 3 was officially released. Tesla first launched the Model 3 in the US market in 2016 and began mass production and delivery in 2017. As its Shanghai super factory was completed and put into production at the end of 2019, the manufacturing cost of Model3 further decreased.

The 7-year-old Model 3 remains a benchmark product in the automotive market, but many analysts and industry insiders believe that it is gradually losing its competitiveness in the fiercely competitive electric vehicle market.

As early as November 28, 2022, Reuters reported that Tesla was developing a new Model 3 to reduce costs and attract customers. On May 16th of this year, according to Bloomberg, Tesla's Shanghai super factory is making final preparations for the trial production of a modified Model 3 model.

In addition, according to Reuters on May 16th, Tesla has applied to regulatory authorities to expand its Shanghai factory,

An undated announcement shows that the expansion plan will increase the total annual power production capacity of Tesla's Shanghai super factory from the current 1.25 million units to 1.75 million units. However, it does not specify whether Tesla has decided to expand or is only seeking approval for potential future production capacity.

If this expansion plan is successfully implemented, the importance of Shanghai's super factory to Tesla will further increase.

Currently, the Shanghai Super Factory is Tesla's production center with the highest global production capacity. Tesla's latest delivery data shows that in the first quarter of 2023, it delivered 422900 electric vehicles, an increase of 4% month on month and 36% year-on-year, setting a new historical high. According to data from the China Federation of Automobile Manufacturers, Tesla's total sales in China in the first quarter of this year were 229300 vehicles, a year-on-year increase of 21%. Based on this calculation, Shanghai's super factory still contributes more than half of its production capacity.

Selling FSD features?

Minister of Industry and Information Technology Jin Zhuanglong met with Musk in Beijing, and both sides mentioned the development of "new energy vehicles" and "intelligent connected vehicles". For Tesla, FSD (Fully Autonomous Driving) is undoubtedly the core of the 'Intelligent Connected Vehicle'.

Currently, FSD is making increasing contributions to Tesla's profitability. At the first quarter financial report conference call of this year, Tesla introduced that it has promoted the FSDBeta version to approximately 400000 car owners in North America, with a total mileage of 150 million miles. For using FSD to achieve profitability, Musk stated that the value will be very high.

In addition, Tesla is currently using FSD to develop Robotaxis internally to further expand its business.

However, due to differences in policies and regulations, FSD did not enter the Chinese market. The Chinese market is currently Tesla's second largest market after the United States. Tesla has delivered hundreds of thousands of cars in China that can be upgraded to FSDBeta. If FSDBeta is officially released in China, it will significantly increase Tesla's revenue.

It is worth noting that on May 12th, Chen Ke, Deputy Director of the Intelligent Manufacturing Promotion Department of the Shanghai Municipal Commission of Economy and Information Technology, introduced that in the next stage, Shanghai will further deepen its cooperation with Tesla, promote the layout of functional sectors such as autonomous driving and robotics in Shanghai, and jointly create a technology industry cluster with core technological advantages that faces the global market.

This means that Shanghai is likely to become the first stop for Tesla FSD to enter the Chinese market.

Promote the construction of energy storage factories and the implementation of energy storage products?

On April 9th, Tesla announced the construction of a new energy storage super factory in Shanghai, which is also Tesla's first energy storage super factory project outside of the United States. It is believed that Musk, who has not visited China for three years, will inevitably personally pave the way for energy storage factories and future sales of energy storage products.

It is understood that the Tesla Energy Storage Super Factory will plan to produce Tesla's ultra large commercial energy storage batteries (Megapack). Initially, it is planned to produce up to 10000 commercial energy storage batteries annually, with a storage capacity of nearly 40GWh, and product offerings covering the global market. The Tesla Energy Storage Super Factory project is scheduled to commence in the third quarter of 2023 and commence production in the second quarter of 2024.

At present, Tesla Megapack batteries have been sold in various countries around the world, such as the United States, the United Kingdom, and Australia, but have not been implemented in China.

It cannot be ignored that the energy storage business has become an important source of profit for Tesla.

Tesla's energy storage business started later than the automotive business, but the layout of the energy storage sector is very rapid, including Powerwall, Powerpack, Megapack and other energy storage products targeting households, small and medium-sized enterprises, large enterprises, and public institutions, covering almost all application scenarios.

In the first quarter of this year, Tesla's installed capacity of energy storage batteries reached 3889 megawatt hours (MWh), a year-on-year increase of 360%, reaching a historic high; The revenue from the energy storage business in the first quarter was $1.529 billion, an increase of 148% compared to $616 million in the same period last year, higher than Tesla's overall revenue growth of 24% year-on-year. Musk bluntly stated on the earnings call that in the process of transitioning to sustainable energy, Tesla's energy storage business will exceed the size of its automotive business.

However, none of Tesla's three major energy storage products, except for the use of Powerwall in the Tesla integrated charging station project, have actually been implemented and promoted. Many analysts believe that laying the groundwork for entering the Chinese energy storage market is also an important goal of Musk's visit to China.

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