The Automotive Industry in Challenge: Changes and Reflections in 2024.
The automotive industry is making waves at the beginning of 2024, with multiple variables inside and outside the industry affecting the direction of the market. The turmoil in executives at companies such as Xpeng and Leapmotor, as well as Tesla's declining earnings report, all reveal a cold and volatile state of the industry. In this context, we deeply analyze the trends in various aspects, interpret the changes in the auto market in 2024 one by one, and also think about the future development path of the automotive industry.
Tesla's dilemma.
Tesla's full-year financial report in 2023 has become a hot topic in the industry. Musk's rare silence and failure to inform the 2024 sales target have attracted market attention. Tesla's annual profit fell year-on-year for the first time, and its market value evaporated by more than 80 billion US dollars, equivalent to more than 570 billion yuan. Behind this huge shrinkage in market value and declining earnings report, it reveals the competitive pressure that Tesla is facing in the global market.
Tesla's competition in 2024 will be mainly focused on Chinese automakers. Musk mentioned the issue of "building ** barriers", making it clear that Chinese electric vehicle companies are the most competitive in the global market, but their success will depend on whether countries build ** barriers. Behind this remark is Tesla's concern about the rise of Chinese car companies, which also adds uncertainty to the market competition in 2024.
The resignation turmoil of Leapmotor.
Wu Baojun's resignation as the former president of Leapmotor has sparked widespread speculation. There are many speculations about the reasons for the resignation, including salary disputes, equity payments, and the impact of Stellantis. The news of Wu Baojun's departure from Leapmotor not only raises doubts about his personal future, but also reflects the uncertainty of the automotive industry. In a challenging market environment, it can be difficult for even high-performing executives to stay in their roles.
This also makes people wonder why a company with a revenue of tens of billions of yuan, even in the sunrise industry, whose performance continues to rise and completes the IPO, why would it easily give up the core executives? Wu's departure highlights how difficult it is for even good leaders to stay ahead of the competition in an industry full of challenges and opportunities.
Variables for Chinese automakers.
In addition to Tesla and Leap, Chinese automakers are also facing various challenges. Akio Toyoda's criticism of the difficulty of breaking through 30% of the market share of electric vehicles, as well as the pessimistic attitude of many institutions towards Tesla's sales in 2024, have raised doubts about the performance of Chinese automakers in the international market.
In particular, the efforts of Chinese car companies in going overseas need to face the competition in the global market and the recognition of international consumers. Musk's remarks reveal a reality: Chinese automakers are doing well in the global market, but the key to success is still whether countries set up the best barriers. This also puts forward higher requirements and greater challenges for Chinese car companies to succeed in the international market.
The turmoil between new forces and traditional car companies.
In addition to Tesla and Chinese automakers, new forces and traditional automakers are also facing turmoil in 2024. The stock prices of new forces such as Weilai, Xiaopeng, and Cialis have declined, and Cialis even issued an announcement on the pre-loss of annual results. This shows that even new players who have been successful in the capital market should not take earnings pressure and market volatility lightly.
Traditional car companies are also experiencing cold and depression in the market change. Changan Suzuki's departure from China, Dongfeng Renault's withdrawal, the fall of new forces such as Weimar and Yundu, and the suspension of production of Ideal ONE, etc., all make people see a market that is constantly changing and full of uncertainty.
Technological progress and market logic are entangled.
Among all these variables, the entanglement between technological progress and market logic is even more prominent. Autonomous driving technology has not been implemented for a long time, and the focus of capital has gradually shifted from the automotive industry to AI, GPT, large models, military and other fields. Money is becoming more and more difficult to earn, it is easier to lose money, and the blood injection of capital is becoming more and more painful. This entanglement between technology and the market makes the future of the automotive industry even more confusing.
Resonance in the workplace and with consumers.
In this era of fierce competition in automobiles, you and I in the workplace can actually be Wu Baojun. The uncertainties and challenges of the automotive industry affect the career development and decision-making of practitioners. Consumers are facing a faster and faster market baptism, and the consideration of whether the brand is reliable is becoming more and more important. Choosing a car is no longer just about cost performance, but also about the reliability and future development of the brand.
Future outlook. The future of the automotive industry is full of unknowns. Under the double blow of market changes and technological disputes, new forces and traditional car companies need to find a way to survive in the face of adversity. At the same time, external factors such as policies and regulations, international relations and other factors will also have a profound impact on the development of the industry. In this era of change, only by constantly innovating and conforming to market demand can we be invincible in the fierce competition.
Epilogue. The automotive industry is full of challenges and opportunities in the changing world in 2024. The turmoil and disputes between all parties reflect multiple pressures inside and outside the industry. At this moment, we need to think more deeply about the essence of the industry, look at the essence through the appearance, find the crux of the problem, and face the future with a wiser vision. In the future, the automotive industry will find a new balance in the interweaving of technology, market and policy, and embrace a more uncertain future.