Despite the recent launch of new electric vehicles by the two German automotive giants BMW and Mercedes-Benz, Tesla's stock price continues to rebound strongly.
On Tuesday, September 5th, Eastern Time, Tesla's stock price opened high and continued to rise, reaching a daily high of $258 at midday, with an intraday increase of 5.3%. The increase later narrowed to within 5%, closing up approximately 4.7%, erasing most of the 5.1% decline from the previous trading day.
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Before Tesla's stock price rebounded, BMW and Mercedes-Benz had just released new electric concept cars. The media called it the most significant move by the two giants in the field of electric vehicles (EV) to date.
BMW unveiled the Neue Klasse concept car, which is expected to go into mass production in 2025 based on the Neue Klasse architecture. The model will feature a significantly improved all-electric platform, with a 30% increase in range, a 30% faster charging speed, and a 25% overall vehicle efficiency improvement. Based on this brand-new all-electric platform, BMW plans to launch six new models in the next 24 months.
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BMW executives stated that the development goal of the Neue Klasse is to reduce battery costs by half and increase range per kilowatt-hour by 25%. BMW CEO Oliver Zipse said the Neue Klasse will be &#34;very profitable.&#34; Zipse also stated that BMW's goal is to double EV sales this year and have battery-powered EVs account for 15% of BMW's global sales by the end of this year.
Mercedes-Benz, on the other hand, has introduced the CLA concept car based on the latest all-electric platform, MMA, which is expected to go into mass production in 2024, next year. The CLA consumes approximately 12 kWh per 100 kilometers and can travel 750 kilometers (466 miles) on a full charge. It can travel 400 kilometers after a 15-minute charge, surpassing Tesla's highest range.
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Since Mercedes-Benz has not disclosed performance data in its official introduction and instead focuses on range and charging speed, the media believes that this model does not prioritize power. In addition, the CLA showcased at this week's Munich Motor Show features many &#34;fancy designs&#34; in the interior, including a water-cooled processor on the floor, silver leather seats, a moonroof, and a &#34;super screen,&#34; with almost no physical control buttons.
However, some analysts believe that while BMW and Mercedes-Benz's new products are indeed highly anticipated, both companies may still lag behind Tesla.
Daniel Roeska, Senior Research Analyst at Bernstein Research, believes that Mercedes-Benz and BMW's new platforms demonstrate the capabilities of European OEMs (Original Equipment Manufacturers) for the first time. These cars may take another year to hit the market, and their specifications indicate that European OEMs can create impressive products. These new platforms will narrow the gap between them and Tesla and Chinese automakers to a large extent, but the gap will not be completely closed.
According to media comments, at this week's Munich Motor Show, Tesla and several Chinese automakers such as BYD attracted the audience, fully demonstrating the lagging position of German automakers, who have dominated the automotive industry for decades, during the EV transition.
The comments state that despite the nearly decade-long investments of BMW, Mercedes-Benz, and other German automakers, they have failed to curb Tesla's continuously increasing market share. Moreover, they are also lagging behind Chinese automakers in terms of EV innovation, losing an important market in China.
While BMW and Mercedes-Benz are making efforts, Tesla is also taking action. Last Friday, Tesla's refreshed Model 3 was launched in China. On the same day, Tesla lowered the prices of its high-end models, Model S and Model X, in both China and the United States. The price of Tesla's Full Self-Driving (FSD) software in the US was also reduced from $15,000 to $12,000.
It is worth mentioning that the new version of the Model 3 rear-wheel drive is priced at 259,900 yuan in China, which is nearly 30,000 yuan more expensive than the old version. This pricing not only deviates significantly from the market's expected price of 200,000 yuan but also differs greatly from Tesla's strategy of lowering prices to maintain sales volume this year. According to Wall Street News • Jianzhi Research, the price increase is mainly aimed at quickly depleting the inventory of the old Model 3.
Globally, the production of Tesla Model 3 and Model Y has been about 78,000 units higher than sales in the past year. If the price of the new Model 3 is lower than that of the old version, consumers who are already tired of the old design will fully shift to the new model, and there may even be cancellations of orders for the old model, which is obviously detrimental to inventory.
Therefore, Tesla may not necessarily refrain from lowering prices but rather aims to deplete the inventory of the old models through the high pricing of the new models. Before deliveries ramp up in the fourth quarter, they may offer price discounts to clear inventory. Additionally, on Tesla's official website in the United States, the purchase interface for FSD has not only reduced the price to $12,000 but also removed the phrase &#34;coming soon&#34; behind the city street autonomous driving feature. This indicates that the feature has been officially launched, allowing vehicles to autonomously drive in complex city environments.

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BMW and Mercedes-Benz's concept cars, known as the two giants, are considered the most significant moves in the field of electric vehicles to date. The two models are expected to go into production in 2025 and 2024, respectively. Analysts believe that the two giants may narrow the gap with Tesla and Chinese car companies, but they are still lagging behind.

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Unfazed by BMW and Mercedes showcasing their "killer moves" in electric vehicles, Tesla's stock price staged a strong rebound, surging over 5% during trading hours.