Recently, the shortlist announcement for the 2024-2025 New Energy Vehicle Framework Agreement Procurement of Jiangsu Provincial Party and Government Organs, Public Institutions and Organizations was announced, and Tesla Model Y was included in the Jiangsu Provincial Government's New Energy Vehicle Procurement Catalogue.
Source: Jiangsu Government Procurement Network
To change the company's sluggish sales situation, Tesla has been taking frequent actions in the Chinese market since the second quarter of 2024 and has achieved certain results. In the second quarter of 2024, Tesla delivered a total of 444000 vehicles in the global market, exceeding Wall Street's expectations. Since July, Tesla's stock price has also changed its low trend for the year, with a 24.51% increase in three trading days.
Model Y entered the government procurement directory
According to the open framework agreement procurement solicitation document (JSZC-320000-SCZX-K2024-0107) published by the Jiangsu Provincial Government, the procurement indicators for this project include subcontracting of sedans, off-road vehicles and SUVs, commercial vehicles and MPVs, pickup trucks, medium and large buses, etc. The price limit for SUVs is 250000 yuan, and the pure electric range is required to exceed 400km.
Source: Jiangsu Government Procurement Network
Currently, the official guide price for the Tesla Model Y rear wheel drive version (standard range version) is 249900 yuan, with a 19 inch wheel hub range of 554 kilometers.
From the list of shortlisted suppliers, in addition to Tesla Model Y, more than 50 different models including Wenjie M7, Avita 11, Deep Blue SL03, Deep Blue S7, Zhiji LS6, Zhiji L7, Changan UNI-K/Z, Qiyuan A07, Qiyuan Q05, Volvo XC40, Cao Cao 60, etc. were also included in this procurement.
Source: Jiangsu Government Procurement Network
Increase attention to the Chinese market
2024 is clearly a difficult year for Tesla.
In the first quarter of 2024, Tesla's profitability and sales all showed a significant decline, entering a bottleneck period. According to Tesla's production and sales data for the first quarter of 2024, Tesla delivered a total of 386800 vehicles worldwide that quarter, a decrease of 36100 vehicles compared to the same period in 2023 and a decrease of over 20% compared to the fourth quarter of 2023.
For this data, many analysts and media have used words such as "sales flash" and "nightmare" to describe it.
According to Tesla, the company is currently in a transitional period between the global expansion of the Model 3/Y platform and the launch of the next generation automotive platform, which are two major growth waves.
In this situation, the Chinese market has become a key focus of Tesla's self rescue efforts. In the following months, Tesla has been operating frequently in the Chinese market, actively responding to competition in the Chinese new energy vehicle market through various means.
In April, Tesla CEO Musk responded to a user's inquiry on social media platforms, stating that Tesla's FSD (fully autonomous driving technology) entering China "may soon be realized."
On April 28th, Musk visited China. Subsequently, the China Association of Automobile Manufacturers released a notice on the detection of four safety requirements for automotive data processing (first batch), which showed that Tesla has passed the authoritative standards and requirements for national vehicle data security.
On July 1st, Tesla China announced on its official Weibo account that it will launch a limited time car purchase discount policy for the Chinese market. Before July 31st (inclusive), it will launch a "five-year zero interest" promotion and multiple discount policies for Model 3/Y, as well as low interest car purchases.
Supported by various market layouts and promotional strategies, Tesla's performance has shown significant improvement. Before the US stock market closed on July 3rd, Tesla released its report on car production and delivery for the second quarter of 2024. Data shows that Tesla delivered a total of 443956 vehicles in the second quarter, higher than Wall Street's previous expectation of 439000 vehicles.
According to the China Association of Automobile Manufacturers, Tesla sold over 55000 vehicles in China in May, a year-on-year increase of 30% and a month on month increase of 77%.
In May of this year, despite a sharp decline in sales of Model Y in Europe, Tesla's Shanghai super factory delivered a total of 45359 Model Y vehicles and 27214 Model 3 vehicles; Among them, Model Y sold 40000 vehicles domestically, a year-on-year increase of 28.7% and a month on month increase of 52%; The new Model 3 sold 15000 units domestically, a year-on-year increase of 32.9%.
