Tesla has once again lowered the price, with the starting price of Model Y hitting a new historic low of CNY 259,900. This is good news for potential car owners who have been waiting for a chance to purchase a Tesla. However, I personally do not think this is a reason to make a purchase. Firstly, due to the gradual easing of epidemic control measures, the “shortage of raw materials” causing a chain reaction of rising costs and prices is no longer a reason. This will inevitably lead to further price cuts caused by cost control. Secondly, a new version of Model 3 has already been spotted. Since Model 3 and Model Y are essentially the same model and will not be replaced simultaneously, and considering that the framework of these two cars is already 6 years old based on the lifespan of Model 3, I don’t think it’s wise to rush to buy a Model Y.
As Tesla’s price reduction quickly spread, domestic new energy vehicle companies also responded quickly, with SAIC Feixuan taking the lead. The company used the slogan “Fly with Feixuan R7 instead of asking WHY” in elevator ads and promotional pages. The meaning behind the word “WHY” is undoubtedly clear, and after learning about Feixuan R7, I realized that it is not just empty rhetoric.
The most direct benefit consumers can expect is the price. After choosing the vehicle-battery separation purchase plan, the starting price of the R7 is CNY 218,500, although the cost of battery rental must be calculated separately. However, the exclusive “battery swapping” privilege of the Feixuan R7 is more tempting than the point-to-point supercharging stations of Tesla.
From a product standpoint, even if the two cars have the same standard equipment, the interior tone of the R7 is clearly more suitable for mainstream aesthetics, especially with the “RISING MAX 3+1 Cabin-style Giant Screen” combined with the three screens of the central control and AR-HUD, truly achieving interconnection of the cabin screens, and the larger field of view angle of the HUD brings more upgrades in interaction while enriching the display content. As for the RISING PILOT auxiliary driving system that is standard across the range and the two-year advanced intelligent driving package that comes with it, it is even better than Tesla’s EAP, which costs an additional 30,000 RMB, in terms of practical experience. From these aspects, the R7 is obviously more understanding of Chinese consumers in terms of body size, cabin configuration, and interior and exterior design, and this is also where Tesla shows signs of exhaustion. When the brand halo cannot support product power, where will Tesla go? Perhaps this is also the essence of the price reduction.
So, from a product standpoint, even if purchasing a Flyin R7 in full, it still has an all-around advantage over the Model Y in terms of product superiority. If the policy of vehicle and battery separation is chosen, not only can there be a discount of 84,000-100,000 RMB on the advance payment (depending on the version), but also the relevant rights and interests of Flyin battery exchange, so I can only say that even if Tesla reduces its price, it will be difficult for it to sustain itself.
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.