When choosing a car, apart from the FEIFAN R7, the only comparable product in the same class was the Tesla Model Y. However, after test driving several times, I couldn’t accept the inhumanity of the mandatory single pedal mode, so I finally chose the FEIFAN R7… It’s been two months since I got my R7, and in the past few days, after the news of Tesla’s price reduction was exposed, FEIFAN quickly “marketed” with the catchy slogan “Choose FEIFAN R7, Why Not?”. I carefully considered this, and I suddenly understood why Tesla lowered its price, let me explain one by one:
First of all, if we look at the starting price of the Model Y before its last round of price reduction, which was 288,900 yuan, the starting price of the R7 is only slightly over 300,000 yuan. However, the extra features of the R7 are much more significant than the small price difference between the two, especially the R7’s single motor version’s 5.9-second acceleration and the RISSING PILOT ADAS system, which directly strikes a blow at the Model Y. In contrast, facing the Tesla’s EAP, which requires an extra 30,000 yuan, FEIFAN provides two years of free advanced driving experience, which can be charged on-demand afterward. In terms of chip performance, FEIFAN is also superior to Tesla. Of course, not only FEIFAN, but also many new energy automotive brands in China can pose a fundamental threat to Tesla in my opinion, that is, meeting consumer needs at a higher level. So, what can Tesla do if it doesn’t lower its price?
Secondly, after Tesla lowered its price, FEIFAN quickly followed suit, allowing more people to know that FEIFAN has a “car-battery separation” policy, meaning that if customers buy the R7’s starting version, they can directly deduct 84,000 yuan from the car price and take the car home for 218,500 yuan. Although the corresponding battery rental fee has to be paid every month, the benefit is that customers have the “battery swapping rights”, and the battery swapping service channels are another big move by FEIFAN in ecological deployment. No matter how you think about it, it’s cost-effective, so even if the Model Y is reduced to 259,900 yuan, it won’t help, because the gap between the two is just too big.
The examples I’ve cited are all actual prices written on paper, and using the starting version as an example makes it more intuitive. If we talk about my own fully-loaded R7 flagship sedan with AR-HUD and three-screen integrated smart cockpit, Nappa leather ventilated and heated massage seats, the queen’s cozy driving experience, plus 3.8s acceleration and a 90-degree large battery, even if the Tesla Model Y Performance arrived today, it would have to concede defeat. Therefore, in my opinion, the reason why Tesla lowered its prices is not only due to the visible cost control, but mainly because of its insufficient product strength.
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.