Regarding Tesla’s proposed issue of US $ 2 billion in stocks, many analysts said that this plan has strengthened the confidence of the outside world that the company can continue to seize its share in the electric vehicle market in the next five years.
Editor’s note: This article comes from Tencent Technology , author Silicon Valley Analysis Lion.
February 14th, according to foreign media reports, Tesla said on Thursday that the emergence of COVID-19 (new coronavirus) in China and around the world may have a substantial impact on its business .
The risk factors section of Tesla’s 2019 10-K document states: “From the end of 2019, the media reported a public health epidemic originating in China, which caused the government to prevent some travel and business activities from being closed. Therefore, the super factory in Shanghai was closed for a short time before restarting production. It is unclear whether the global supply chain, especially the auto parts supply chain, will continue if the epidemic continues for a period of time. Will be affected, and to what extent. We may experience costs or delays related to such events that we have no control over, which may have a material adverse effect on our business, results of operations and financial condition Influence. “
Tesla announced on February 13 that the company plans to raise $ 2 billion through the issuance of common stock. Board member Larry Ellison will buy up to $ 1 million in stock, and Musk will buy up to $ 10 million in stock. Tesla said it plans to use the proceeds of the offering “to further strengthen its balance sheet and for general corporate purposes.”
Regarding Tesla’s proposed issue of US $ 2 billion in stocks, many analysts said that the plan has strengthened the confidence of the outside world that the company can continue to seize its share in the electric vehicle market in the next five years.
Tesla’s filings with the SEC (United States Securities and Exchange Commission) show that in 2019, it achieved revenues of US $ 2.979 billion (approximately RMB 20.8 billion) in China, a year-on-year increase of 69.55%. At the same time, China is still the second largest consumer market for Tesla. Its revenue in China in 2018 was 1.757 billion US dollars, and in 2017 it was$ 2.027 billion. In these three years, Tesla’s business scale in China has been greatly expanded.
Although the United States is still the largest consumer market for Tesla, in 2018, Tesla’s revenue in the US market declined year-on-year, reaching 24.578 billion US dollars (about 171.65 billion yuan). And as Tesla subsidizes taxes and subsidies in the United States, Tesla’s competitive advantage will be further weakened.
Data shows that the top four markets of Tesla in 2019 are the United States, China, the Netherlands, and Norway, and their revenues in these four markets are $ 12.653 billion, $ 2.979 billion, $ 1.59 billion, and $ 1.201 billion. US dollars, other market revenue was 6.155 billion US dollars.
With the completion of the full construction of Tesla’s Shanghai Super Factory, this year Tesla will rely on its strong product power and excellent cost performance after domestic production to achieve large-scale delivery in China. Revenue will also be further enhanced. Relying on the huge demand for electric vehicles in the Chinese market, Tesla’s market size in China is also expected to exceed the US market in the future.