Li Xiang: Tesla ‘s closest Apple to the automotive industry, Wei Lai benefited from Tesla ‘s entry into China

LiXiang:Tesla’sclosestAppletotheautomotiveindustry,WeiLaibenefitedfromTesla’sentryintoChina
OntheeveningofApril8,LiXiang,founderofIdealMotors,andSnowballfounderFangSanwenexchangedhottopicsonthesnowballroadshow.LiXiangsaidthatTeslaistheclosestcompanytoAppleintheautomotiveindustry,andbelievesthatifthereisnonewcrownepidemicthisyear,Tesla’snetinterestratewillsoonbeclosetoPorsche.  LiwantedtorevealthatTesla’sModel3netprofitrateinChinacanreach30%orhigher,andthisfigureisrealizedthroughthedirectsalesmodel,”Thisisveryterrible.””HebelievesthatTesla’ssalesandmanagementexpensesaccountedfor9%ofsalesrevenuelastyear,andR&Dexpensesaccountedfor4%to5%.Ifthisfeeisnotdeducted,thenetinterestratebeforetaxwillmovetowards15%,whichisbasicallyThreetimestheprofitmarginofmainstreamautomakers.  AskedwhetherTeslacouldbecomeanappleintheautomotiveindustry,LiwantedtothinkthatTeslawasthecompanyclosesttothisgoal,andbluntlysaidthatthebiggestproblemofmostautomakersisthattheyarenotqualifiedintheirownstrategies.  ”IfApple,likeNokia,launcheshundredsofmobilephonesayear,Appleisnotatthisprofittoday.Becauseofthecostreductiongeneratedbythisscale,therewillsoonbeachievements.Howcanyoumaximizeyourfewproductsandgenerateapremiumgeneratedbyusers’perceptionsofbrandsandpsychology,infact,theycangenerateprofits.”LiXiangbelievesthatthehighlevelofbiologyintheautomotiveindustryisafalseone,”infact,carresearchanddevelopmentdoesnotneedtospendsomuchmoney,justbecausetherewasnocompetitioninthepast.BecauseweplantogotoChina,intheglobalscope,inthepast30years,theonlycarmanufacturerthatreallysurvivedisTesla.”LiXianghighlyrecognizesTeslaandbelievesthatWeilai’srecentsalesincreasehasbenefitedfromTesla,”Teslaenteredthemarketasapowerfulcatfishforseriouspractitionersinthisindustry(newenergy)Intheshortrun,itisstressful,butinthelongrunitisdefinitelyagoodthing.”Forthecreationoftheidealcar,LiXiangsaidthatthisishisthirdentrepreneurshipandthemostvulnerableone.Helaughedattheidealcarlikeapoorchild.”Manypeoplesaidthattheyneedtospend350billiontoentertheautomotiveindustry.Givemeten.Wecanbeprofitableforbillionsofdollars,really,wesaidit.LiXiangsaidthatthecurrentmarketshareofthecarisscattered,butthefutureleaderinthesmartelectricvehicleindustryhasachancetooccupy30%,whichisrelativelyclosetothecurrentsmartphonemarketpattern.ReporterLuYifueditedSunYongproofreadingChenDiyan