What's wrong with me being a rich man?

Chapter 400 Brand Value

The tram is a toy.

This is the view of people like Ma Nana over a period of time. Considering the prices of Tesla's past products, adding a modifier makes it a more complete statement: the electric car is an expensive toy.

As the technical deputy director of Lotus Engineering and a car enthusiast herself, Ma Nana knew that Tesla's new car seemed to have a different concept, but those were just media descriptions, just words and pictures. She had never actually experienced the car in person...

Manana suddenly had a strange feeling that "this is not a toy, it is a real car".

Moreover, it's not just a car, it's a very good car.

Most surprisingly, this car completely lacks the high-value engines and transmissions that the industry has been hyping up for decades; it is an industrial product achieved by bypassing traditional methods.

The impact was truly overwhelming.

“The Model S is indeed selling well.” Hearing Ma Nana’s exclamation, Yu Xing looked at the car in front of him and thought of Tesla’s stock price. He laughed and said, “You can buy Tesla stock now. You’ll definitely make a fortune later.”

"This is only a phase," Ma Nana commented. "It is indeed fast, but it hasn't surpassed gasoline cars."

Upon hearing this, Yu Xing looked at the deputy chief engineer with surprise: "What? You're not convinced by it? You don't think it has a bright future?"

“Overseas, it starts at at least $7. Its speed isn’t unbeatable at this price point; people are just looking for something new.” Ma Nana is very knowledgeable about cars and gave an example without much thought: “Like the Chevrolet Corvette, it only takes 3.8 seconds to go from 0-60 mph, and it costs less than $6!”

0-60mph is the time required to accelerate from zero to sixty miles per hour, which is approximately 96.6 kilometers. It can be considered an indicator of 0-60 mph.

Yu Xing shook his head: "I don't know Corvette."

Ma Nana said seriously, "President Yu, if you use your ignorance to deny Corvette, then many more people may not know about the Silicon Carbon Group."

Seeing her serious expression, Yu Xing couldn't help but laugh and said, "I'm not mocking the Corvette, I really don't know, but I can guess that it's positioned as an American muscle car, with various mechanical features to support its price, but for the market... well, for this Model S, I think it's enough if it can be comparable to a gasoline car in the same price range."

"Director Ma, could you have imagined that Tesla could do this two years ago?"

When faced with this question, Ma Nana did not insist on her unconvinced statement, but admitted: "I just said that electric cars are developing very quickly. My point of view is that they are more of an experiment, a phase, and will not continue to be sold like this indefinitely, because everyone knows that their performance does not surpass BMW's M4, Audi's RS, and so on."

Model S官宣的0-60mph加速是4.2秒，而M4是4.1秒，RS是4.1秒，科尔维特更是只要3.8秒。

“Director Ma, you may be very good at tuning cars, but selling cars isn’t just about selling acceleration.” Yu Xing gestured that the Model S could be put down, and said as he walked towards the driver’s seat, “Different price points cater to different user groups.”

He opened the car door and got in: "If a customer is buying a car in the 10 yuan range, he will probably need to pay attention to the fuel consumption. What about the 20 yuan range?"

Ma Nana casually walked halfway around, opened the car door, sat in the passenger seat, and frowned as she repeated the question she had been asked: "20? Hmm... space? wheelbase?"

“These parameters will be compared and measured, but at the level of 20, users may prefer…” Yu Xing pondered a word, “To put it bluntly, maybe he wants something more respectable.”

He continued, "At 30 yuan, it enters the luxury car segment, and people tend to focus more on brand value. Regarding your question, does a BMW 3 Series in the 30 yuan price range necessarily accelerate better than cheaper cars? Why do many car owners still choose it?"

Yu Xing brought this obvious distinction back to the car in front of him: "Just like you said, the Model S is already comparable to a gasoline car in the same price range. It also has the labels of new energy, green, and electric. Those who can afford to spend $7 to buy a car may be more interested in the value conveyed by these labels."

He pointed to the large screen inside the car: "Such a large 17-inch screen, and it's touch-sensitive. The BMW M4 and Audi RS you mentioned still have physical buttons, including Tesla's system that can be upgraded over OTA. These are all different labels. As a member of Lotus, the acceleration of a few seconds that you care about may not be what real car owners care about. Don't use this to look down on its market."

Mr. Yu concluded by saying, "Furthermore, magazines like Autohome have praised this car as 'proof that America still possesses great creativity.' This kind of value transmission is also what American users need. Many Tesla owners are from Silicon Valley. If you are interested in the market competitiveness of the Model S, you can write a summary for me on aspects such as driving experience and quietness, and then we can discuss it further."

Ma Nana frowned in thought.

A moment later, she saw President Yu, with his bright eyes, point to the car door and ask somewhat blankly, "What's wrong?"

"Get off the bus now," Yu Xing said simply.

Ma Nana was taken aback by President Yu's sudden change of attitude and asked, "Why are you getting out of the car?"

Yu Xing asked curiously, "I'm going to show President Guo around. What are you doing up here? Don't you have a job?"

Ma Nana made an "uh" sound and silently opened the door to get out of the car.

Yu Xing waved to Guo Chuan.

Guo Chuan excitedly sat in the passenger seat.

Just as Yu Xing was about to take General Manager Guo for a drive, he suddenly rolled down the car window and added, "Director Ma, you know Maslow's hierarchy of needs, right? The most basic is physiological needs, then safety needs, then social needs, and the last two are esteem and self-actualization. I think there are commonalities among the different customer groups in the car market from this perspective."

Before Ma Nana could answer, President Yu drove out of the workshop.

As she watched the car disappear from sight, and reflecting on her focus on acceleration, she had to admit that her market judgment had been flawed.

"Isn't that Director Ma from China?" Guo Chuandong asked curiously as he touched the interior of the Model S in the car.

"Yes, he's from Malaysia, I think he's of mixed heritage from several countries," Yu Xing replied casually. "He's the deputy technical director of Lotus Engineering, and he helps us with vehicle dispatching."

Guo Chuan nodded, thinking that Director Ma was quite pretty.

He adjusted the seat, savoring the ride, and sighed, "I wonder if anyone would buy this kind of car if it sold for seven or eight hundred thousand yuan in China."

"This is last year's 'Car of the Year' selected by the American magazine 'Auto World.' They say it has the driving feel of a race car, a driving experience comparable to a Rolls-Royce, fuel efficiency as good as a Toyota Prius, and a handling experience comparable to a Chevrolet. Do you think that's convincing?" Yu Xing laughed.

Guo Chuan pondered for a moment and said, "I think its side profile looks a bit like a Maserati."

Yu Xing was a little surprised: "Really?" Guo Chuan nodded: "It's probably the sense of line that gives me this feeling."

Yu Xing said "Oh": "Great designs are often the result of unspoken understanding."

He gently patted the steering wheel: "Tesla's Q1 earnings report hasn't come out yet, but it may surprise the industry."

Guo Chuan laughed and said, "Really? Then I really should buy some of its stock."

“You should definitely buy it,” Yu Xing said kindly. “The production capacity of this Model S is tight, but the demand is still quite strong. Most importantly, it shows the industry that electric vehicles can be successful, which is quite significant.”

The ability to manufacture products comparable to luxury gasoline cars using electric power is itself a shock to the industry, and unlike its predecessor, the Roadster, the Model S is relatively more mainstream.

From a supercar toy to a mass-market luxury car, this represents a breakthrough and success in positioning.

Guo Chuan pondered President Yu's evaluation of the car.

After a moment, he asked, "Mr. Yu, you mentioned earlier the positioning of different customer groups. What about the 'Jiuzhou' product from the Silicon Carbon Group? If you want to sell it at a price of 30+, given the brand value you just mentioned, that's going to be very difficult."

"Our primary goal is to create a superior riding experience. We can't define ourselves solely by the 30 yuan price range. Besides being more competitive, our models are eligible for subsidies. Without subsidies, we might actually be aiming for the 40 yuan price point," Yu Xing laughed. "That's the value of the brand; as for the name..."

He looked at General Manager Guo and said, "The value of the license plate is even simpler. I've talked to Director Zhu from Lingang and leaders from the city, including leaders from Beijing. License plates from cities like Shanghai are expected to offer more preferential treatment for new energy vehicles. Isn't the value of such a license plate even more appealing?"

Guo Chuan couldn't help but take off his glasses, and asked in astonishment, "You mean this brand's value? The real brand's value?"

"Isn't the real value of my brand better than those inflated, superficial values?" Yu Xing asked confidently. "Tesla gets loans and subsidies from the U.S. Department of Energy, so what's wrong with me getting some policy support?"

Guo Chuan chuckled and said, "President Yu, you really have a knack for grasping the value of your product and the value of your brand. Your brand value, your brand value..."

“This is an industry issue, and we should support it when necessary,” Yu Xing said. “New car brands need this to go from a cold start to a hot start. The carbon silicon data company next door also spent a lot of effort to get the mobile internet business going.”

Guo Chuan immediately said, "President Yu, I heard that your silicon carbon data company is about to take off!"

"It would be great if it really took off. Right now, we're working on advertising revenue and hoping to sell more ads." Yu Xing shook his head. "We just cut our team recently, so it's not that easy to do."

Guo Chuan felt that it was already quite remarkable.

He recalled Mr. Yu's past behavior and concluded that this was a spare blood pack that had been brought out again.

“Look at the big screen in the Model S. 'Jiuzhou' will also have to push forward with research and development in this area this year. They want to put refrigerators, color TVs, and big sofas into the car,” Yu Xing joked. “These are the three main components of a new energy vehicle.”

Guo Chuan sensed the sarcasm in Yu's tone, but he was still surprised by what Yu said: "Refrigerator, color TV, big sofa? Is this necessary? Won't it increase the cost? Do car buyers not pay much attention to these things?"

Yu Xing slowly slowed down and pulled over to the side of the road, asking, "Mr. Guo, what kind of car do you drive?"

Guo Chuan was a little confused and replied, "I usually drive an Audi A6."

“Then next time you should get an A8. It has all these things, like seat massage.” Yu Xing gestured for Mr. Guo to drive while he went to the passenger seat to experience them. “These things aren’t new to cars, it’s just that cars with these are too expensive these days. But if you really consider the cost…”

Guo Chuan understood what President Yu meant; he still wanted to provide a superior experience, something he had never really paid attention to before.

It's not that Audi doesn't use it, it's that I don't drive a big A8?

He was thinking that once he made money from Mr. Yu, he would buy an Audi A8.

Guo Chuan jokingly shared his thoughts on switching to an A8.

“Mr. Guo, don’t say I don’t consider you a brother. If you really want to switch to an A8 without any pain, you can buy some Tesla stock.” Yu Xing said seriously, “I have a feeling that the stock price will definitely rise after its Q1 financial report comes out.”

Hearing this, Guo Chuan still didn't believe it, but didn't want to refute it to his face, so he simply continued the conversation: "Tesla's stock price is going to rise? And what happens after it rises?"

"After the price goes up..." Yu Xing answered after a simple thought, "then they will definitely issue new shares, raise funds, expand production capacity, continue to invest in research and development, and expand the global market."

Guo Chuan chuckled inwardly; President Yu really did have a lot to say.

He carefully experienced the Model S in his hands and was indeed surprised by its excellent driving experience. However, on the way back, he still mentioned the main purpose of his trip: "Mr. Yu, your financing is going very smoothly. I saw that the supply chain management department has submitted an application plan, saying that we can apply for an investment budget."

Yu Xing hummed in agreement and nodded, saying, "That's true."

With the financing secured, Silicon Carbon Group will naturally ramp up its R&D efforts and will also continue to work on upstream and downstream projects.

Guo Chuan chuckled: "Oh, President Yu, that's why you're our hope. I'm still a bit short this year."

Yu Xing said directly, "President Guo, just follow the supply chain management process. They considered and calculated for a long time before deciding on this, and I have to respect everyone's opinion. We will adjust it based on feedback. In addition, we also need to get our patent alliance going."

Guo Chuan felt a little embarrassed seeing that President Yu was being so direct. If things were to proceed directly according to the procedure, there would be no point in him even speaking up.

He slowly parked the car in the factory area of ​​the Silicon Carbon Group, silently opened the door and got out, but after taking a few steps he still said in a muffled voice: "Well, President Yu, the patent alliance is very forward-thinking, I agree."

One thing at a time. If Silicon Carbon Group is willing to contribute its patents, which it has developed with real money, to lead a patent alliance, then we can certainly join in.

Yu Xing smiled slightly: "I knew that President Guo had a long-term vision. Let's take a look at the supply chain management process. Red Falcon Investment is also very interested in the opportunities in the electric vehicle industry this year. IDG has been looking at suitable projects since last year. Let's wait for the summary and then sit down and talk."

A smile involuntarily appeared on Guo Chuan's face.

(End of this chapter)