Tesla walked 14 years to burn money and China’s sales remained secret.

In 2006, Elon Musk published a blog post titled "The Secret Plan of Tesla Motors" on Tesla's official blog. He said that he wants to promote a revolution in electric vehicles and realize sustainable social operation. Ten years later, when the rhetoric nowadays honors the geometry?

Recently, Tesla announced its second-quarter financial report for the 2017 fiscal year. Continuing losses have caused concern. At the same time, sales performance, especially sales in China, has been frequently mentioned. In fact, Tesla produced 25,708 units in the second quarter, an increase of 40% compared to the same period last year. With the high shipments of 22026 Model S and Model X models, Tesla’s total shipments reached 47,077 in the first half of the year. Compared with the same period last year, it increased by 53%.

It is worth mentioning that Tesla has not released any sales data in the Chinese market despite the good sales situation. "Tesla's sales in China will reach $2 billion in 2017," said an industry insider who declined to be named. Tesla's sales in China are getting better, but in the 2016 annual financial report released by Tesla on February 22th, there have been initial signs.

According to the 2016 financial report, Tesla China had sales of US$1 billion in the current year, accounting for approximately 15% of Tesla’s global sales. Although still unable to compare with the world’s largest market—US’s US$4.2 billion in local sales, the Chinese market, which was highly hoped by Musk’s in the first two quarters of the 2017 Chinese market, seems to have finally started to grow steadily. .

Some industry sources told reporters that in 2016 China's electric vehicle sales reached 507,000, which has surpassed the United States as the world's largest electric vehicle market. Continue to tap the Chinese market potential has become the focus of Tesla's sales team in the future. He also expects that 1 million Tesla will hit the road by 2020, and Tesla is using it to subvert the entire auto industry.

Da Mo and then Tesla’s sales of Chinese sales secret

Tesla’s financial report for the second quarter of fiscal year 2017 showed that the company’s revenue was US$2.79 billion and its net profit loss was US$401 million, which continued to increase compared to the net loss of US$293 million in the same period of last year; net loss attributable to common shareholders was 336 million. The U.S. dollar was higher than the loss of 293 million U.S. dollars in the same period last year.

In fact, since the production capacity cannot always meet the requirements of break-even, Tesla has been in a loss-making state for most of the time since its establishment in 2003, and only two quarters have achieved profitability. Taking 2013-2016 as an example, the cumulative loss for the three years was 1.843 billion U.S. dollars, and the average annual loss was 600 million U.S. dollars.

In stark contrast to this, Tesla’s orders and deliveries in the first six months have grown strongly. According to statistics, in the first six months of 2017, Tesla produced a total of 51,126 new cars, of which 25,708 were new vehicles in the second quarter, and delivered more than 22,000 vehicles, an increase of 53% year-on-year. It is worth mentioning that Tesla has still not released the sales data in the Chinese market.

According to a survey of market research firm JL Warren Capital, Tesla China exported a total of 4,799 Model S & X to China in the first quarter of 2017, becoming another growth pole for Tesla following the United States. The year-on-year increase of 350%. If this rate of growth is maintained for the rest of the year, Tesla’s exports to the Chinese market will double this year from last year. According to Tesla’s disclosure of 25418 shipments in the first quarter of April, Tesla China’s share in its global market will approach 20%.

"Securities Daily" reporter also according to the motor vehicle traffic accident liability compulsory insurance data found that in 2017 Tesla in the country both the total amount of improvement, but also the structure of improvement. In the first four months, Tesla had 2,552 vehicles on the domestic market, which was significantly higher than the 1599 vehicles last year. Among them, Beijing is still the main sales force, Shanghai has the largest increment, and Shenzhen’s demand has also improved significantly. In large and medium-sized cities, although the growth rate is not as fast as that of the mega-cities, the demand also shows a certain increase.

Regarding Tesla’s current sales situation in China, Cui Dongshu, the secretary-general of the Federation, stated that Tesla’s performance in 2017 has improved significantly compared to the same period in 2016. It is believed that with the localization of Tesla, its market performance will further increase.

At the same time, Morgan Stanley recently released a new research report on electric vehicles. The report predicts that before 2020, the Tesla Model 3 and the upcoming "Model Y" models will be able to take up It is about half of the world's electric vehicle sales, and this dominance will be “unbreakable” for at least a decade.

Market value had Ford and GM built factories in China or just a matter of time

2017 is also a crucial year for Tesla. Tesla's first mass-produced and civilian-priced Model 3 will be fully delivered. Investors will also increase Tesla’s shareholding by 30% this year; Tencent had previously announced that it had subscribed for 5% of its shares.

The reporter noted that Tesla’s market value had once surpassed that of Ford and GM and became the No. 1 car maker in the US when the stock price peaked. This phenomenon not only cheered Tesla, but also made the world's electric vehicle industry quite exciting. To know that compared to Ford, Universal's millions of sales data, Tesla is only about 1% of their. Tesla's rapid growth to a certain extent also indicates that the world electric vehicle industry prospects can be expected.

It is also the strong growth in sales since 2017 that has convinced the market and a growing number of analysts and investors that Tesla will establish a joint venture with local Chinese brands to produce electric cars in China and avoid 25 % of the tariffs and 17% of the value added tax, at the same time can enjoy the Chinese government's subsidies.

In fact, Tesla’s time to establish a joint venture with a local Chinese brand is still unknown, and Tesla has never disclosed any relevant information. However, according to sources, Tesla is currently negotiating cooperation with potential partners in different Chinese cities.

As evidence, as early as 2014, Musk stated that Tesla will start producing electric cars in China in 2017 or 2018. Because Musk himself also knows that if he does not set up a joint venture in China, Tesla’s sales cost in the Chinese market will be much higher and he will face more restrictions.

According to industry insiders, Tesla’s unique direct sales model and zero-budget marketing are largely due to new energy, high-tech auras and the reputation of “Iron Man” CEO Musk CEO, but creating a relaxed environment for customers. The experience of buying a car, actively establishing and utilizing customer loyalty, and exploring customer psychology for creative marketing are indeed worthy of reference by other brands.