Carmen internal reference | Tesla’s market value once approached the world’s first car company; Weilai completed US $ 100 million convertible bond financing; more than 70% of dealers expect auto market consumer demand to decrease further in February


Editor’s note: This article is from Krypton 36 “Future Automotive Daily” (micro-channel public number ID: auto-time), Author: Xiao Cheng Yi.

“Carmen Internal Reference” is the weekly column of the Future Automobile Daily. It will sort out the business news worth paying attention to this week in the travel field.Here are the company and business news to watch this week (February 3-February 7):
Finishing | Cheng Xiaoyi
Are users behind closed doors at home to spur automotive online marketing or promote industrial transformation?
Recently, car manufacturers such as Honda, Ford, Tesla and Volkswagen issued suspension notices, and many car companies issued revenue warnings.According to market research agency IHS Markit, due to the long-term shutdown of the plant, China’s auto output will shrink by more than 1.7 million units, a drop of 32% year-on-year.As the largest car consumer market, China has set off a “butterfly effect” in the global auto market, and the overall sentiment of the auto market is rising.
In the face of this heavy hit, both dealers and car companies are taking the initiative.Many car companies have initiated dealer care policies, and users have stayed behind closed doors, which has also promoted the development of online car marketing.The acceleration of survival of the fittest in the automotive industry may promote industrial transformation.
Further reading: The automotive industry under new crown pneumonia: a difficult winter
Tesla’s market value once approached the world’s first car company, the Chinese market helped a lot
In the second half of 2019, the company achieved profit for two consecutive quarters. Coupled with the good news from the Chinese market, Tesla’s stock price has been rising all the way.This week, Tesla’s stock price soared to a maximum of $ 968.99, with a market value of $ 160 billion, surpassing Volkswagen Group, and approaching the world’s highest-priced car company Toyota (with a market value of about $ 193.7 billion).
Without China, there would be no Tesla today.At present, Tesla’s main source of profit is sales of vehicles, but it is difficult to sustain its profit based on the US market alone.In the first half of 2019, Tesla’s total sales in China reached US $ 1.469 billion, a year-on-year increase of 41.8%. The Chinese market has become an important engine of Tesla’s growth.The Chinese market also regards Tesla as a “catfish that stirs the water in the pond,” but Tesla still faces the dual challenges of the haze of the auto market and its rivals’ persistent pursuit.
Further reading: Tesla’s market value approaches the world’s first car company, the Chinese market has helped a lot
Autonomous car companies go to sea: can only export low-end models?
The domestic living space is obviously squeezed, which makes the determination of autonomous car companies to expand to overseas markets more firm.In 2019, the independent brand market share fell below the 40% market red line for eight consecutive months.Unlike the severe domestic situation, the overseas market has great potential for development.Automobile companies such as SAIC, Chery, Dongfeng and BAIC have opened up overseas markets.
Although after more than 60 years of overseas accumulation, the international competitiveness of independent brand cars has been significantly improved, but there are still common problems such as decentralized firepower and concentrated models at the low and mid-end.If Chinese automobile companies want to establish bases overseas, the most important thing is to enhance the competitiveness of their brands. This is a proposition that cannot be bypassed, and it is also the key to the expansion of Chinese automobile brands overseas.
Further reading: Autonomous car companies go to sea: can only export low-end models?
Chasing Tesla, or making a dip?
There is no one valuation method and model that can explain the development curve of Tesla’s stock price.On February 4, Tesla’s stock price rose to $ 968.99 at one time. Just one day later, Tesla’s stock price, which has soared for many days, plummeted 17%, and its market value evaporated by nearly $ 27.5 billion.As a latecomer following Musk, Weilai Automobile’s elusive financing progress and the “curse” of continuous losses have made it a “risk investment” in the eyes of many people.For ordinary investors, which one is more reliable to invest in Tesla and Weilai Automobile?
Tesla is overvalued in the short term, but may be undervalued in the long run.In contrast, Weilai Automobile is difficult to replicate the upward trend of Tesla’s stock price in a short time, but there is still room for upward movement in the short term.For investors, choosing Weilai, which currently has a low stock price, may yield higher returns than investing in Tesla.However, in order to “sweep the bottom”, it is important to choose the right time.
Further reading: Chasing Tesla, or Bottoming Weilai?
Can Ofo make a comeback as a shopping platform?
From “everywhere and anywhere to ride a car”, “easy when riding” to “rebate across the entire network, save money on shopping”, the slogan on the homepage of ofo Xiaohuang App has witnessed its transformation and ups and downs.In the version 4.0 ofo App, which was launched on January 29, the user’s deposit has become a “balance”. If you want to withdraw, you must use “rebate for shopping”.Even the name of the official app has become “ofo rebate” and introduces it as an e-commerce shopping guide platform.
In June 2018, ofo was exposed to misappropriation of user deposits or over 10 billion yuan.The deposit run crisis officially broke out, ofo tried to fight back.The first bet on the blockchain was unsuccessful, and then the short video outlet was followed, but also because the user experience was poor, the P2P platform cooperation was terminated due to personal information disputes.Ofo’s only way to survive is to take promotional orders on WeChat service numbers.Now, ofo, who had hoped that “the world has no strange corners,” can make a comeback in the form of a shopping platform?
Further reading: Catching Monsters: How did a travel company transform into an e-commerce platform?
Weilai completes US $ 100 million convertible bond financing, but the market waits and sees
On the evening of February 6, Weilai Automobile announced that it had signed a final transaction document with a non-affiliated Asian investment fund. Weilai Automobile will issue convertible bonds with a total principal of USD 70 million.Around February 10,This means that Weilai has recently completed a total of US $ 100 million in convertible debt financing projects.
As soon as the news came out, Weilai’s stock price opened higher and lower when the US stock market rose on the day. As of the close, it fell 7.06% to $ 4.08.Analysts believe that this is related to Weilai’s short-term and preferential investor terms, and the market may still wait and see in the short term.Obviously, financing is very important, but Weilai’s own hematopoietic ability can give the market confidence.After delivering growth for five consecutive months in 2019, it is very important for Weilai to be able to maintain stable sales growth in the current adverse situation.
Further reading: Weilai completes US $ 100 million convertible bond financing, but the market remains on the sidelines
Delayed resumption of work under pressure from dealers, multiple car companies adjust sales strategy
At present, most 4S shops are still suspended.Cui Dongshu, secretary general of the Association of Vehicle Industry Associations, believes that the decline in the automobile market in January and February may exceed 25%.In order to ease the pressure on dealers, many auto companies have adjusted their sales strategies.Jaguar Land Rover China and Chery Jaguar Land Rover will cancel dealer monthly assessments and provide inventory subsidies.Infiniti, Volvo, Dongfeng and other car companies have also launched similar policies.
In addition to dealer support policies, car companies are also exploring online marketing models.Car companies such as Great Wall and SAIC have launched online sales models such as online car watching and live car watching, working with dealers to improve online drainage, sales and service capabilities.
Further reading: Delayed resumption of work under pressure from dealers, many car companies launched “loosening” policy
Ford’s 2019 net profit plummets by 98.7%, pushing forward large-scale business restructuring
Recently, Ford Motor released the fourth quarter of 2019 and the full-year performance report for 2019.According to the financial report, Ford’s net profit in 2019 was 47 million U.S. dollars, which was much lower than the 3.7 billion U.S. dollars in 2018, a decline of 98.7%.The reasons for the decline in net profit came from a variety of sources.For example, the cost of warranty for Explorer models is too high; the new agreement between Ford and UAW will bring about $ 600 million in costs.
In response, Ford Motor intends to promote large-scale business restructuring and stop loss.On February 8, Ford announced a number of executive changes.It is worth noting that in the Chinese auto market, thanks to the advancement of Ford China 2.0 strategy and the promotion of Changan Ford Acceleration Plan, the loss of Ford brand is narrowing.
Further reading: Net profit plummets 98.7% in 2019, Ford Motor advances large-scale business restructuring and stops losses
Over 70% of dealers expect auto market consumer demand to decrease further in February
On February 7, the China Automobile Dealers Association released a report saying that dealers were generally bearish on the February auto market due to delays in most provinces.74.7% of dealers expect that consumer demand in the market will further decrease in February, and most dealers expect auto market sales in February to fall by more than 50% year-on-year.If the start time is no longer delayed, the cumulative year-on-year decline in car sales is expected to reach about 20%.
Cui Dongshu, secretary general of the China Federation of Vehicle Industry Associations, believes that the market still has the possibility of achieving positive growth from March to December 2020.Some consumers originally hoped that the idea of ​​online car hire to solve travel was shaken, and the enthusiasm for buying private cars will increase.
Further reading: January inventory warning index exceeded 62%, most dealers expect February sales to decline by 50%
Many stocks in the A-share auto sector nearly fell, and the stock price of Ningde Times rose against the trend
After the market opened on February 3, the Shanghai Stock Index fell 8.73%, and nearly 3,000 stocks fell, with the traditional auto sector bearing the brunt.The stock prices of many traditional car companies such as Dongfeng Motor, SAIC Group, Great Wall Motor, and Changan Automobile are close to the limit.
With the broader market falling, auto parts supplier Ningde Times has become popular all the way.On the same day, Ningde Times stated that it will supply Tesla with lithium-ion power battery products.Affected by this news, the stock price of Ningde Times rose against the trend. From February 3 to February 7, the stock price rose by approximately 26.58% to 160.2 yuan.In the current secondary market, Ningde Times is leading the way, becoming the hottest power battery supplier in China.
Further reading: Many stocks in the A-share auto sector have almost fallen, and the stock price of Ningde Times has risen against the trend

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