Home » Founder of Li Auto dissed a car-manufacturing peer which just went public in the US

Founder of Li Auto dissed a car-manufacturing peer which just went public in the US

by SEP Editor
3 mins read
(Photo Credit: baidu.com)

Xiang Li, Founder of Li Auto. retweeted an interview of Wei Wen, the CEO of Tuanche, by the media in his personal social media account and claimed that this person ‘is probably a liar’.

Some context:

Xiang Li suggested that those entrepreneurs who want to find a saviour usually end their search with a liar. Or else they are probably liars themselves. I am really surprised to see someone bragging these kinds of opinions to the public. They really challenged entrepreneurs’ line in the sand.

Wei Wen answered Xiang Li’s doubt via his personal Weibo account:’I did not expect the first opponent along my way of endeavour to be Mr. Xiang Li. Expect patience, did you forget to mention the importance of insight and judgement? Wasn’t Sihan Feng (CEO of BMW China) being refuted because he dissented too early? No one should view themselves as a prophet. Do not become the type of person you hate the most.’

Tuanche’s car production strategy

All these arguments originated from Tuanche’s newest strategy. A week before, Tuanche announced that they will manufacture their own car, which is priced at about 100,000 to 200,000 RMB. 

Wei Wen announced that Tuanche had already found one of the most elite teams in the industry, who could afford tasks including product planning, engine development, and intelligent driving software invention. This team could also largely decrease the cost of mass production and the time cost of car production.

  • This team can produce cars above the cost of 20,000,000 RMB as well as below the cost of 50,000 RMB. The genre of cars produced includes commercial vehicles and cargo vans. 
  • The period for new energy vehicle production is shortened from 36 months to 18-24 months. 
  • The cost of mass production of cars is shortened to 3.18 billion RMB. 
(Photo credit: sina.com)

Pros and cons for Wei Wen’s plan

Technological advancement:

  • Professionals spoke about their concerns about Tuanche’s plan of car production: “Car production is not about combining two teams together, with one building the car and the other selling it. Tuanche’s corporate style makes the industry sceptical too.”
  • In fact, in the era where software defines the car, developmental ability determines enterprises’ competitiveness. Under this background, Tuanche’s 100 people development team might not be the most attractive choice. 

Market potential:

  • Wei Wen is very confident about the opportunities existing in the current market:’ we think there will be about 2 years of window phase in the new energy vehicle’s market. The barriers of entry for car production are not high yet. The market still allows new companies to enter this industry. ’ 

Capital reserve:

  • Bin Li, chairman of NIO, announced that the current cost of car production has risen to 400 billion RMB. 
  • Jun Lei, who bet ‘all his pride’ into Xiaomi’s car production, has promised to take out 100 Billion USD in 10 years to maintain his car production plan. 
  • Apparently, Tuanche does not acquire such a solid money supply. 

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