On the Battery Day 2020 in Tesla, Mask indicated that a $250,000 (approximately $16.18 million in yuan renminbi) in-door electric vehicles would be introduced over three years. However, in January of this year, Mask indicated that Tesla did not develop new electric vehicles, which he promised to spend up to $250,000 on the cell day 2020, and indicated that much remained to be done in his balconies.

This also means that consumers are hard to start low-cost electric vehicles in Tesla at short notice, and that careful consideration is given to finding that the reasons behind them are not cost-related. In fact, because of supply chain problems, Tetras has repeatedly raised the prices of new vehicles. As the cost of raw materials rises, the Mask dream of introducing new, more expensive electric vehicles may be temporarily put on hold.

Both the company and the mask expressed the view that the temporary abandonment of low-cost electric vehicles would have a far-reaching impact on the market breakdown of low-price electric vehicles, owing to higher cost of raw materials and lower subsidies.

Low-cost motor vehicle profits are crushed to the limit

It goes without exaggeration to say that low-cost electric vehicles are experiencing the most difficult times.

As a result of factors such as the retreat of subsidies, higher prices of raw materials and shortage of chips, many new energy vehicles have been moving up the prices of new flags, and low-price electric vehicles, which have been regarded as chewings in the new energy market, have begun to be crushed. The impact of the new vehicle price increases does not seem obvious for medium- and high-end vehicles, but the pressures of the cost increases are even more pronounced for those low-cost market models, such as the five diamond-based MINIEV and the Ola Blacks.

Previously, the cessation of single-off incidents by cats and white cats under the flag of Era was commendable. The Era brand, CEO, eastern, had indicated that, although the brand was backed by an industrial chain, the tiny car at the time of the brand was still causing significant losses to the company. In black cat, for example, after a significant increase in raw materials prices in 2022, the Olaba cat lost over $ trillion.

In addition, the black and white cats, which have not yet delivered new cars to users, have accumulated over 20,000 orders, such as continuing bills, waiting for new orders to be delivered by the second half of 2022.

From the long city of Olava, White cat to run T03 and then to QQice in Chiri, these vehicles either choose to stop or raise prices, which are also the solution given by most car enterprises, and who are, after all, reluctant to do business.

Over the past two years, a number of cars have received rapid market recognition by small low-cost electric vehicles, and although the impact of the backlash on low-cost electric vehicles has been modest, the lower-cost electric vehicles have also been significantly affected by the increase in the cost of raw materials, since the three systems account for a larger proportion of the cost of a vehicle and the room for adjustment in the price of key raw materials has been very limited, so the higher the higher the mean of a higher loss.

In cases where the wheeled business directly transfers such small vehicles at the end, it may be difficult for consumers to accept that they sell at low prices, whether they are business or consumer, and are extremely sensitive to price changes. As a result, most vehicles choose to absorb the pressure of rising costs.

However, the pressure for self-sustaining costs in enterprises is not long-term. The cost of new energy vehicles was relatively transparent and, in view of current market conditions and cost analysis, more than 300km was used for the bulk of the loss of vehicles, with the possibility of a contraction by adjusting the financial model, devaluing the cost assets and part of the cost transfer, but the direct cost of most vehicles was approximately equal to the price plus subsidy.

“As the price of raw materials increases, the loss will further deteriorate. We have been looking for solutions, but this industrial development of the market breakdown is unhealthy.” It was also indicated that the price of raw materials for batteries had not yet ended, which would further increase cost pressures.

With the gradual expansion of the new energy market, the industry’s demand for core raw materials for power batteries such as lithium, cobalt and nickel is also growing, and the rise in marketing prices is naturally inevitable.

However, the rise in these core material prices is fast rife. In August 2021, the quotation for lithium of battery-grade carbonate was also about 100,000 yuan renminbi/tons, and today prices were more than 500,000 yuan renminbi per ton, while the price volatility of the “coltan” price, triggered by recent changes in the international situation, further increased the upward adjustment in the prices of new energy vehicles.

In terms of volume, policy, raw materials and so on, the upward adjustment of the new energy vehicle price will be a long-term and sustained process. In a short period of time, the rise in the price of new energy vehicles has become the dominant mode, and, according to previous estimates of Morgan Stanley, the increase in nickel prices could lead to an increase of $1,000 in the cost of single vehicles for electric vehicles.

It is therefore not easy to understand why many cars have announced the upward adjustment of the price of new vehicles, and Tetrasla has twice in a week, with Model Y’s high performance version, which has a combined increase of 300,000 yuan. The sale price of MINIEV has also increased in connection with the new money, and it appears that the business is really insulated.

In fact, it is not known that low-cost electric vehicles are not lucrative, that new energy vehicles are now generally in a state of loss, that the head of the new power of the vehicle is in a state of loss, and that even in Tesla, many years have been spent to achieve profit, so that the new energy car will have a long way to go.

It may be more difficult for low-cost electric vehicles to be profitable because, in comparison with medium- and high-end electric vehicles, the main users of micro- and small-powered electric vehicles are branding and generational, with less demand for renewal, performance and science and technology, so that enterprises can exercise low-cost pressure and rely on sex prices to occupy markets.

However, users of low-cost electric vehicles would be very interested in prices, which would not have been more than 100,000 yuan, and it would be difficult for consumers to accept if the adjustment increased by 5,000 to 1000 yuan.

But it is now in the immediate future that the rise in the price of batteries increases the cost of vehicles such as MINIEV and Eurorac, White cats, etc., and the pressure of the manufacturer is high, after all, that the profits of these door-to-door electric vehicles are very small, that it is not possible to raise the cost of self-packaged enterprises, and that the price increases are clearly impossible in the face of such large volume.

Why do this business continue?

On a regular basis, it is certain that doing business is lucrative and that the goods sold must be profitable. But minibuses such as the Vannio MINIEV,