Why should we give priority to ensuring the power consumption of SAIC Motor and Tesla supply chain?

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Author: animal production team leader source: official account: animal production team

A business application letter from the Shanghai Municipal Economic and Information Commission detonated the network. In this letter of business application, Shanghai Municipal Economic Commission made it clear to me that Sichuan Provincial Department of economy and information technology is expected to give certain power resources to supply chain enterprises of SAIC and Tesla, including 16 parts enterprises such as Chengdu Yinli automobile.


As soon as the business application letter was exposed, it immediately caused controversy and a lot of misunderstanding and misunderstanding. It is written in the business application letter that the 16 industrial chain enterprises downstream of SAIC and Tesla will be given a certain amount of power resources. However, in the spread of many bad media, it has become an inclination to provide power for SAIC and Tesla.

There is a huge difference between the two. What Shanghai Municipal Economic and information commission means is that the 16 supply chain enterprises downstream of SAIC Motor and Tesla are all located in Sichuan Province. It is hoped that Sichuan Province will give priority to ensuring the power demand of these 16 supply chain enterprises, rather than the power demand of SAIC Motor and Tesla. Both SAIC Motor and Tesla are located in Shanghai. The power demand of Shanghai is coordinated by the State Grid and guaranteed by the west to East power transmission project. Shanghai is not short of power, but Sichuan is short of power.


As far as Sichuan is concerned, under the situation of power shortage and limited production, the industrial output value will inevitably be affected. However, Sichuan also needs to minimize the negative impact on industrial production capacity. We can be sure that the industrial power consumption yields to the people, which is the basic principle of people’s livelihood. Sichuan can not transfer the civil electricity to the supply chain of automobile enterprises, but can only cut it in the cake of industrial electricity. So, whose power supply should Sichuan Province give priority to?

I know that at this time, as long as you scold Shanghai, SAIC and Tesla, you will definitely get a large number of fans and bring a big wave of rhythm. The reading volume will not be low. In particular, if the saying of “Shanghai auto enterprises robbing Sichuan electric power” is given a little play, it may be possible to gain 100000 + reading. However, if scolding is useful, we media writers should be allowed to sit in the post of mayor of Shanghai.


From the economic point of view, the requirements of Shanghai Municipal Commission of economy and information technology are reasonable.

In the case of the real estate industry failing to recover, the automobile industry has become one of the core industries that promote economic development. Sichuan province occupies an important position in China’s automobile industry chain. In the field of new energy, the reserves of lithium ore resources in Sichuan rank first in China, reaching 158 million tons, accounting for 57% of the total reserves of lithium ore in China.

The rich lithium mineral resources have also cultivated a large-scale new energy industry chain. Almost all the Chinese lithium battery giants have invested and set up factories in Sichuan, such as Shengxin lithium energy, Ganfeng lithium industry, Ningde times, honeycomb energy, Yiwei lithium energy and China Innovation airlines.


Sichuan is not only the core production base of the new energy automobile industry chain. In the field of traditional fuel vehicles, more than 300 auto parts enterprises such as Bosch of Germany, Delphi of the United States, Magna of Canada and Faurecia of France have set up factories in Sichuan. Among them, Bosch, Delphi and Magna are indispensable core suppliers of automobile enterprises.

If the production capacity of Sichuan’s automobile upstream industrial chain is limited due to lack of electricity, it will directly affect the output of downstream automobile enterprises’ assembly plants. Among them, SAIC Group has an annual production and sales volume of more than 5 million vehicles and a revenue of 779.8 billion. In terms of automobile export, 479000 vehicles were exported from January to July 2022, ranking first in China. It can be said that SAIC Motor is basically the first automobile enterprise in China with an export volume of more than one million vehicles.


Tesla’s position is equally important. Although Tesla is an American automobile brand, its domestic production rate has reached 95%. Some netizens joked that Tesla was made in China except for the logo. This also reflects a core problem of Tesla: “the supply chain is heavily dependent on China, and the main profit comes from the brand premium.”

You can also say that the Tesla logo is worth 68000. Because the net profit from selling a Tesla is just 68000. A Tesla is sent from Shanghai and shipped overseas. 95% of its parts are made in China. Tesla is a typical American brand, made in China. Protecting Tesla’s production capacity is essentially protecting China’s local automobile supply chain.

To put it mildly, Tesla only sold 8461 vehicles in the Chinese market in July. This sales figure is undoubtedly ugly, and can not compare with Wei Xiaoli, Nezha and Zero run. However, in July, Tesla exported 19756 vehicles. Most Tesla cars made in Shanghai are exported overseas. Isn’t this helping China’s auto supply chain to go global?


In the domestic market, Tesla is increasingly unable to sell. Tesla is more and more like a Chinese auto enterprise with American brands, driving the Chinese auto supply chain to the world. 95% of Tesla purchased by foreigners are Chinese parts. On the domestic market side, we can support national brands, but on the supply side, we must support China’s automobile supply chain to enter the global market.

This is the fundamental reason why China allows Tesla to establish a wholly owned factory in Shanghai.

This reminds me of President Lukashenko of Belarus who asked, “where are the headlights?”


Car factory: “headlights come from China.”

Lukashenko: “where are the tire fenders?”

Car factory: “it’s also Chinese.”

Lukashenko: “what about the engine?”

Car factory: “the engine comes from China.”

Lukashenko: “China? OK. Where are the tires?”

Car factory: “it’s also Chinese.”

Lukashenko said angrily: “fortunately, our relations with China are not bad, but we must strengthen localization.”


If Biden is allowed to inspect Tesla’s Shanghai factory, he may be angry on the spot. If there is a chance, we should invite Pelosi to visit Tesla factory in Shanghai.

To give SAIC and Tesla supply chain enterprises a certain amount of power resources, Shanghai does not unilaterally require Sichuan to supply power. After all, the electricity is still in Sichuan Province and is supplied to the auto parts enterprises in Sichuan Province. This is the cooperation between the upstream and downstream of the industrial chain, which can not only keep the stability of Sichuan’s automobile industrial chain, but also keep the continuous growth of Shanghai’s automobile industry, which is mutually beneficial and win-win.

In terms of industrial chain status, Sichuan is like Taiwan Province. TSMC cut off Huawei’s chip supply, and Huawei 5g was shut down. Sichuan has cut off the supply of lithium battery in Shanghai, and the production capacity of SAIC Motor and Tesla will be shut down for more than half. Only through close cooperation and upstream and downstream coordination can the common development of both sides be promoted.


In the industrial layout of the whole country, the national financial pressure in 2022 will be great. In the central fiscal revenue, only six provinces and three cities have net contributions, and other provinces, municipalities and autonomous regions are the receiving places of transfer payments. Among them, Sichuan is also the largest transfer payment receiving place in China.

If at this time, Sichuan and Shanghai do not work together, but still get stuck in each other’s necks, isn’t it a fight in a pit? It is not beneficial to the country, nor is it beneficial to the people. The national economy is in difficulty, the people have grievances in their hearts, and the crude incitement of regional conflicts and the creation of internal conflicts are simple models for obtaining traffic, but I can not do so.

As we media, we still need to speak a little conscience.

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