From knock-off old-man's electric vehicles to industrial giant

Chapter 326 "A Pleasant Revenge," Lightning-Fast Group Joining!
Amid the wave of phasing out new energy vehicle subsidies, Tesla has urgently announced price adjustments, reducing the price of the Model 3 Long Range and Performance versions by 40,000 to 100,000 yuan respectively.

This move has been welcomed by various automotive media outlets, as the Model 3's high-profile announcement of mass production and entry into the Chinese market is a result of the 40% tariff imposed on automobiles due to escalating trade tensions between the US and China.

During the auto show, Zhu Xiaotong publicly expressed his determination to do a good job in localization by considering the international environment and talked about the high-end positioning of new energy vehicles. However, he did not mention how to balance the large amount of import intermediary fees that consumers pay due to tariffs.

After all, imported luxury cars are a separate category. While imported Teslas produced in California factories have low cost-performance ratios, American-made imported models such as the BMW X5 and Mercedes-Benz GLE, which have also announced price increases, are not much better. The consumer group with this purchasing power is a case of one willing to pay and the other willing to pay.

"The high price isn't the car's fault; look for the reasons within yourself."

"Imported goods have their own unique elegance."

"No extra charge, no luxury!"

"Do you understand imported manufacturing processes? Do you understand European and American manufacturing?"

—"Domestic car manufacturers are most fond of cutting corners"

just.

This time, the uncrowned king of high-end new energy vehicles, which is based overseas, has obviously failed to gain a foothold in the ranks of high-end imported luxury cars, and has even quickly lowered its proud head.

Therefore, the emergency price adjustment seemed somewhat hasty, and some people inevitably associated it with Xingchen Motors.

The next morning, a reporter from NetEase rushed to the office: "Was the emergency price adjustment of Model 3 due to the order crisis circulating online? Is it true that there have been too many cancellations recently because the Model 3 is priced relatively high and has a lot of markup?"

"We had already prepared the price adjustment policy."

Facing the set-up camera, Zhu Xiaotong also delivered his prepared remarks: "Due to tariff pressures, imported models are indeed more expensive. Tesla faces enormous cost pressures. Adjusting the price baseline is the first step in our localization efforts. There will be more initiatives to benefit consumers, such as our advanced Supercharger network, which is gradually being built, allowing every car owner to enjoy additional Supercharger benefits."

"So, the initial pricing of the Model 3 in China is actually somewhat inflated, or rather, overpriced?" The reporter adjusted his statement after hearing this.

As is well known, manufacturers often announce price increases due to rising costs caused by various external factors.

The clever part is that if the cost increases by three cents, manufacturers will often raise the price by five cents, and then claim that they are doing so under pressure.

"Product value is a matter of opinion, and I don't agree with measuring results by premium pricing. Different groups of people have different needs," Zhu Xiaotong calmly replied. "You can't say that we lowered prices because of a premium. What about those domestic models whose new energy subsidies have been phased out, which are now cutting benefits and raising prices? What do you say about that?"

He had prepared a speech in his mind, but he couldn't help but reveal a hint of resentment.

While other automakers are raising prices, Tesla is announcing a price cut. Isn't it obvious who the good guys are?

Just because they are high-end brands, they are being questioned and criticized. Isn't this a form of targeting?
The NetEase reporter nodded thoughtfully, then asked, "Okay, so what do you think of the frequent comparisons between Tesla and Star Auto online?"

This is a hot topic.

Rather than focusing on price increases or decreases, the current online debate centers on which factor better represents today's new energy vehicles.

Prior to this, Xingchen Auto's market share, and even the emergence of the Xingchen L7, further solidified its position as the leading domestic new energy vehicle manufacturer.

As a pioneer in new energy vehicles, Tesla's founder Elon Musk is known for his open-source initiatives. This year, Tesla has made a big splash by building a factory in China and simultaneously securing the top spot in overseas sales. It's no wonder that Tesla is generating so much buzz.

The struggle between a powerful dragon and a local snake.

Without needing to buy a car, some online communities have already established their own spiritual symbols and started their own battles.

"I don't think there's any need for comparison."

When Zhu Xiaotong was asked this question, his face flushed, not because of market pressure, but because he remembered the situation at the auto show.

"The two are different companies. Our Tesla philosophy is purely about new energy, efficiency, and high performance to meet the needs of high-demand groups."

Zhu Xiaotong paused for a moment. He had many "opinions" about the stars, so many that he had to speak them out:
"Looking at Xingchen, I find it quite interesting. It's a bit ironic that a car company that mainly focuses on range-extended electric vehicles isn't exactly pure in its own right, and it's ironic that it's representing new energy vehicles. Previously, range-extended electric vehicles could receive subsidies like other new energy vehicles in the same class, but they enjoyed a huge cost advantage because of the engine. This year, the government has clearly realized this problem and adjusted the subsidy standards for range-extended electric vehicles. This is a signal. If the market is full of products and brands that take shortcuts, it will be a disaster."

--funny.

What makes your range-extended electric vehicle (REEV) the top brand in the new energy vehicle market? And what makes you the representative of new energy vehicles?

That alone is enough to nail the stars to the ground.

Those who carry fuel tanks should get out of the ranks of green new energy sources!
His attitude was quite radical, which surprised the reporter: "Mr. Zhu, your views on range-extended electric vehicles are quite clear, but Xingchen Motors doesn't only make range-extended vehicles, right? They also have a pure electric product line, especially the newly unveiled Brilliant brand, that high-end pure electric sports car..."

But I never expected this.

When this question was raised, Zhu Xiaotong seemed a little excited, and he could hardly contain his excitement.

OK OK.

—You finally asked a question!

He agreed to the interview today because he had made ample preparations, and at the very least, he wanted to redeem himself from the humiliation he suffered at the auto show!
When it comes to the question about Xingchen Motors, it's better not to mention it at all, because once it's brought up, his speech speed increases even more.

"Then there's no need for comparison. As far as I know, the pure electric sports car that Xingchen showcased at the auto show still uses Polestar batteries, which are the industry-recognized lithium iron phosphate batteries..."

"To be honest, I don't know what Xingchen was thinking or what it meant when they built this car."

Zhu Xiaotong feigned regret and sighed, "As an industry journalist, I think it's also necessary for you to convey some professional concepts to the market audience. The energy density of lithium iron phosphate batteries is relatively low, and it is currently far inferior to high-performance ternary lithium batteries. There is a 20%-30% energy density difference between the two, which is a real physical limitation."

"In addition, there is a weight difference. Based on the current industry level, the weight of the two at the photoelectric core level alone is 150kg. Even if Polestar's battery structure and module are excellent, this physical difference is difficult to overcome."

The NetEase reporter was taken aback. To be honest, he knew the basics about ternary lithium and lithium iron phosphate batteries, but when it came to delving deeper, he couldn't compare to the industry veterans. He couldn't help but ask himself:

"This... does a 150kg weight difference really have such a big impact on high-end models?"

Zhu Xiaotong admitted that he had hit Xingchen's sore spot, which was an unavoidable topic: "In order to reduce the weight of a high-performance supercar by 200kg-300kg, the cost of a custom-made carbon fiber body and seats can reach millions. We all know the impact of vehicle weight on a car's suspension and performance. The lighter the model, the better the steering and track performance. Xingchen used lithium iron phosphate batteries when building this car, which is a configuration that is not suitable for the track."

“Our Tesla Model S and even Model 3 use custom batteries from Panasonic and LG, which are the world’s most advanced ternary lithium batteries with the highest energy density. The Porsche Mission E (Taycan concept car) also uses a similar approach. This is the only option for building high-performance electric vehicles. Otherwise, dragging along lithium iron phosphate battery packs would only be more about appearance than substance.”

Of course—there are also mascots in the industry that are only for display.

To make his argument more convincing, he also brought up Porsche.

Both high-end and professional brands have chosen ternary lithium batteries, but Xingchen insists on betting on lithium iron phosphate batteries. Isn't that stupid?
Zhu Xiaotong was secretly pleased with himself.

High-end sports cars currently have a mature business path worldwide. In addition to concept and exterior design, they are destined to be linked to performance and racing. It is undeniable that the concept of the Starry Night car was very well done, with features like turning around on the spot and summoning with a wave of the hand, which impressed people.

However, the biggest problem is that it uses lithium iron phosphate batteries.

"A mascot for display only, this..."

The reporter was startled again, secretly marveling at the biting sarcasm of the Tesla China head!
Good guy.

The interview revealed hidden keywords?!
It must be said that even from a professional point of view, there is nothing wrong with these words. There has never been a precedent in the industry for making sports cars with lithium iron phosphate. Why would Starcraft do this?
His understanding of the issues was insufficient to address them, and now that Tesla has brought this point to the forefront, it's tantamount to directly exacerbating potential discussions and conflicts, which will undoubtedly increase the scrutiny faced by Polestar Motors. Even if they subsequently switch to ternary lithium battery modules, it will inevitably fall into the hands of Mr. Zhu, who is currently presenting the battery, demonstrating that lithium iron phosphate batteries are a "low-end production line," thus indirectly lowering Polestar Battery's market credibility.

Zhu Xiaotong delivered a fierce burst of energy before finally stopping to drink some tea to soothe his throat.

Then, the MVP spoke: "Our Model Plaid is about to be updated. We will update the pre-order information on the official website at the end of this quarter. As a million-level pure electric sports car, its performance and configuration will be greatly upgraded. According to overseas test data, the fastest acceleration from 0 to 60 mph is as low as 2.5 seconds..."

Overseas acceleration from 0-60 mph is roughly equivalent to 0-96 km/h in China.

The Model P is Tesla's flagship product and boasts the title of the world's fastest mass-produced electric vehicle. Originally, the replacement plan for this car was to be officially announced at the end of the year or in the first quarter of next year. However, due to the accelerated progress of factory construction in China and in order to further increase market influence, Tesla headquarters decided to disclose the news ahead of schedule, which can be regarded as a strong boost to the market.

After all, the issue of Model 3's orders in China is mainly due to public opinion and the comparison between Model 3 and the Brilliant U9. The old Model 3 has been on the market for more than two years without a major redesign. Whether compared with Xingchen Auto or with Porsche's Mission E, it feels like it is being threatened.

Now that Models has announced a redesign, it's making a strong comeback as a reigning champion.

……

The interview immediately gained widespread attention after it ended.

In particular, the rebuttal from the head of Tesla's China operations and the latest revelations about Models immediately caused a huge uproar in public opinion.

"Good heavens, they've started fighting?!"

As the second-in-command in the new energy sector, Wang Chuanfu watched the entire interview video immediately, demonstrating unparalleled speed in following the gossip online.

He was sitting in his office when he gasped in shock at what he read!
"Attacking range extenders to exploit subsidy loopholes... criticizing lithium iron phosphate batteries as unfit for supercars!!"

Ruthless!

That's ruthless!!
Even if there's some grudge, as someone in the industry, he wouldn't publicly reveal such a falling out.

Wang Chuanfu felt a sudden tightness in his chest.

--hiss!

How to say it.

It's quite immersive.

Aren't they also lithium iron phosphate batteries?

Isn't it just equipped with an engine?

You—

Who are they insulting?

Is it really necessary to get this dirty?!

I suddenly felt like I had suffered an undeserved calamity.

The conflict between the powerful dragon and the local bully affects even the other fish and shrimp in the pond.

He couldn't help but look at Vice President He Long and casually asked, "How do you think Xingchen will respond this time?"

He Long has been leading the development of the blade battery internally for several years, and he is also feeling a bit stressed at this moment.

He thought for a moment and shook his head: "It's not a good answer."

"The differences between lithium iron phosphate batteries are obvious. Instead of talking about safety and stability, they focus on weight and track performance. From the perspective of vehicle positioning, track performance is indeed a big challenge."

BYD's battery R&D progress is still stuck on how to improve density and optimize modules, while the requirements for high-performance lithium iron phosphate batteries for the market are another extreme, and the R&D and manufacturing difficulty increases exponentially.

From a psychological perspective, he hoped that Xingchen would succeed, since following Xingchen's path would save him a lot of detours.

From a technical standpoint, betting the success of StarCraft's high-end brand on a pure electric supercar is an extremely risky move.

High-end products aren't limited to sports cars; why not also make an SUV?
This reduces the stress caused by the nature of the battery.

Wang Chuanfu inexplicably began to think about Xingchen.

He nodded first, then shook his head: "I don't think President Xu is a person who doesn't think things through. At least he won't wait to be scolded. The problem with using lithium iron phosphate to make high-performance cars is obvious. They may have other considerations. At least they have planned carefully before acting."

He Long had a sudden thought, and then she also felt that Xingchen should at least have a backup plan.

It all depends on how hard it is.

then.

Then she saw Wang Chuanfu's ambiguous smile.

Suddenly it dawned on me.

Regardless, BYD can just watch from the sidelines.

Now that someone is bearing the pressure, it's a good time for steady development. If Xingchen really fails, BYD might just be able to take its place!

Who can remain the runner-up forever?
Tsk!
Thinking about it that way, it's actually quite nice.

……

The long-dormant account of Jia Yueting has suddenly come back to life, sparking heated online discussions.

"What Xingchen Auto is best at is packaging ordinary low-end technology into high-end products; take range extender for example, it is obviously outdated technology, but it is sold as high-end, and renamed as range extender. People who don't know the details may think that a 1.5T engine is very rare."

Now they're using lithium iron phosphate batteries to build supercars, isn't that just making a fool of themselves? Even I, Jia Yueting, know to use ternary lithium batteries.

This time, they've set their sights on the stars and won't let go, which is a classic case of "satisfying gratitude and seeking revenge."

"Watts, if you don't update, I'll think you're dead!"

"Didn't you get speechless after being roasted by President Xu last time?"

"My boss, Mr. Xu, invited you to the auto show, why didn't you come? Damn it, speak up!!"

"Old Jia, oh Old Jia..."

The comments section is quick too, people are joining the group at lightning speed!
(End of this chapter)