【True Zoom Finance】April 24 Noon Briefing: Soaring 12%! Tesla to Accelerate Launch of More Affordable Models
"Tesla's Q1 earnings report showed a 9% decline in revenue, the largest drop since 2012, with revenue and profits falling short of expectations for the third consecutive quarter, pressured by slowing demand for electric vehicles. Tesla's net profit dropped 55% YoY to $1.13 billion from $2.513 billion; the decline in sales even exceeded that of 2020; the company's automotive revenue fell 13% YoY to $17.34 billion. XPeng and Huawei offer various subsidies to "poach" Xiaomi car owners; Ping An of China: Q1 operating profit attributable to parent company reached RMB 38.709 billion."
Key News
Surge 12%! Tesla to Accelerate Launch of More Affordable Models$Tesla(TSLA.US)
l On April 23 local time, Tesla's Q1 earnings report showed a 9% decline in revenue, the largest drop since 2012, with revenue and profits falling short of expectations for the third consecutive quarter, pressured by slowing demand for electric vehicles.
l Tesla's net profit dropped 55% YoY to $1.13 billion from $2.513 billion; the decline in sales even exceeded that of 2020; the company's automotive revenue fell 13% YoY to $17.34 billion.
l Tesla stated during the Q1 shareholder meeting: "We have updated our future vehicle lineup to accelerate the launch of new models before the previously announced start of production in the second half of 2025." "These new vehicles, including more affordable models, will be produced on the same production lines as our existing vehicle lineup." Following the announcement, Tesla's after-hours stock price surged over 10%.
l Tesla's disappointing Q4 2023 results, with weak and vague 2024 delivery guidance, had previously severely impacted the stock price. Tesla remains cautious about short-term growth expectations, stating that deliveries may be lower than last year. The company recently said: "Our vehicle sales growth rate in 2024 may be significantly lower than in 2023 as our team focuses on launching next-generation vehicles and other products."
Xiaomi Aims to Deliver Over 100,000 Vehicles Annually; Nio, XPeng, and Huawei Offer Subsidies to "Poach" Xiaomi Car Owners$XIAOMI-W(01810.HK)
l On April 23, The Paper found that Huawei, Nio, Li Auto, and XPeng offline stores have introduced deposit subsidies targeting Xiaomi SU7 orders. If Xiaomi SU7 deposit holders (who paid a RMB 5,000 deposit) switch to other car brands, they will receive full or partial compensation for their lost deposit.
l However, most automakers are reluctant to admit they are "targeting" Xiaomi. A salesperson from one brand told reporters that while they wouldn’t openly mention such subsidies, customers with Xiaomi deposit screenshots could negotiate the lowest prices for car accessories, saving roughly several thousand yuan.
l Several Nio stores in Shanghai confirmed that Xiaomi order holders switching to Nio would receive a RMB 5,000 deposit subsidy. A Nio salesperson said the policy was recently introduced.
l The subsidy isn’t exclusive to Xiaomi; the salesperson noted that Nio has similar policies for competitors like Li Auto and XPeng.
l A XPeng store salesperson in Shanghai said that while direct deposit subsidies are difficult, customers could receive points equivalent to cash for purchasing XPeng configurations. When asked if the subsidy targeted Xiaomi, the salesperson replied, "Currently, Xiaomi is the hot topic, so only Xiaomi owners can apply."
l Huawei is also among the brands "poaching" Xiaomi orders. Rumors suggest that Xiaomi SU7 deposit holders who switch to the Huawei-backed Aito S7 will receive a RMB 5,000 subsidy after paying the final amount.
l A Huawei store salesperson in Shanghai confirmed the subsidy policy for Xiaomi order holders, stating that a Xiaomi SU7 reservation screenshot could reduce the final payment for the Aito S7 by RMB 5,000.
l Cui Dongshu, Secretary-General of the China Passenger Car Association, noted that Q1 2024 price cuts in the auto market exceeded 60% of the total cuts in 2023, matching the scale of 2022. The cuts primarily affected pure electric and plug-in hybrid models. The intensity of price cuts in February and March 2024 reached "astonishing levels" historically.
l The "poaching" tactics by automakers reflect the fierce competition in the EV market, especially as Xiaomi has just begun deliveries and needs time to ramp up production.
l Xiaomi CEO Lei Jun posted on Weibo on April 23 that Xiaomi SU7 lock-in orders exceeded 70,000 by April 20. "We are 全力 expanding production capacity, with an annual delivery target of over 100,000 vehicles. The standard and Max versions, originally scheduled for late April deliveries, were advanced to April 18."
Ping An of China: Q1 Operating Profit Attributable to Parent Company Reached RMB 38.709 Billion$PING AN(02318.HK)
l On April 23, Ping An Insurance (Group) Company of China, Ltd. announced its Q1 2024 results for the period ending March 31.
l In Q1 2024, the group achieved an operating profit attributable to parent company shareholders of RMB 38.709 billion. Core businesses—life & health insurance, property insurance, and banking—resumed growth, with combined operating profit attributable to parent company shareholders reaching RMB 39.816 billion, up 0.3% YoY. Life & health insurance saw significant growth, with Q1 new business value hitting RMB 12.89 billion, up 20.7% YoY (comparable basis); per-agent new business value rose 56.4% YoY. The integrated financial model deepened, with individual customers nearing 234 million by end-March, up 1.0% from year-start; average contracts per customer reached 2.94. The medical-elderly care ecosystem strategy progressed, with health insurance premiums nearing RMB 40 billion in Q1; customers with medical-elderly care ecosystem benefits accounted for ~70% of Ping An Life’s new business value, up 6 ppts YoY.
l Q1 life & health insurance new business value was RMB 12.89 billion, up 20.7% YoY (comparable basis); new business value margin was 22.8%, up 6.5 ppts YoY (comparable basis). Q1 life & health insurance premium income rose 1.2% YoY to RMB 185.346 billion.
l Per-agent new business value in the life & health insurance channel jumped 56.4% YoY, with "premium+" agents among new hires up 11.0 ppts YoY. By end-March, full-payment renewal rates in grid-promoted cities rose 2.5 ppts YoY.
l Product-wise, Ping An Life’s health management services covered over 10 million customers in Q1. For home-based elderly care, services expanded to 54 cities by end-March, with nearly 100,000 people qualifying. In March, Ping An launched the "573 Home Safety Renovation Service" with partners to help seniors age safely. High-end elderly care projects launched in Shenzhen, Shanghai, Hangzhou, and Foshan.
l Ping An adheres to a customer-centric philosophy, offering "hassle-free, time-saving, and cost-effective" integrated financial solutions. By end-March, individual customers reached ~234 million, up 1.0% from year-start; average contracts per customer hit 2.94. Since end-2019, customer numbers grew 17.9%, with average contracts up 10.1%.
Today’s Forex & Commodities Update
EUR/USD: Euro Holds Above 1.0700 as Dollar Weakens and Eurozone PMI Beats
l S&P Global noted that U.S. business activity continued expanding in April, albeit slower than March.
l Early Wednesday Asia, EUR/USD held above the 1.0700 psychological level. Weaker-than-expected U.S. April PMI data weighed on the dollar, "boosting" EUR/USD. Traders await Germany’s IFO business climate/expectations and U.S. March durable goods orders for cues.
l The Hamburg Commercial Bank’s latest PMI survey showed eurozone business activity expanded at its fastest pace in nearly a year in April, driven by a strong services rebound. The eurozone composite PMI rose to 51.4 in April from 50.3 in March, beating forecasts of 50.8—a nine-month high.
l The services PMI hit an 11-month high of 52.9 (March: 51.5), above expectations of 51.8. The manufacturing PMI fell to 45.6 (March: 46.1), missing forecasts of 46.5. The data attracted EUR/USD buyers, though ECB dovishness may cap gains.
l ECB policymakers emphasized the need for multiple 2024 rate cuts, even as stubborn U.S. inflation delays Fed easing and Middle East tensions keep oil prices elevated. ECB President Lagarde signaled a likely June cut to the record 4% deposit rate but remained open on further moves.
l On Tuesday, the U.S. S&P Global composite PMI fell to 50.9 in April (March: 52.1). The manufacturing PMI dropped to 49.9 (March: 51.9), below forecasts of 52.0, while services PMI slid to 50.9 (March: 51.7), missing estimates of 52.0. The report showed U.S. business activity expanded slower in April, weighing on the dollar and limiting EUR/USD upside.
Precious Metals: Global Gold Prices Weaken
l Gold: Comex gold futures edged down 0.2% Tuesday to settle at $2,342.10/oz. Prices steadied after hitting a two-week low as Middle East tensions eased. Traders await key economic data for clues on Fed rate-cut timing.
Crude: Oil Hits 3-Week Low as Middle East War Fears Ease
l On April 23, WTI crude rose nearly 2% to over $83/bbl. June WTI gained 1.78% to $83.36/bbl; June Brent rose 1.63% to $88.42/bbl.
l Weak manufacturing data may prompt faster Fed rate cuts, boosting oil. The S&P Global U.S. manufacturing PMI fell to 49.9 in April, a four-month low (below 50 = contraction). Prices rose post-PMI release.
Source: Goldhorse Capital Extramile
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