Tesla Motors Inc (TSLA) Working To Improve Business In China
Tesla Motors Inc (NASDAQ:TSLA) is keen to improve its operations in China. The company will introduce new vehicles in the market and increase its service centers there to trigger growth. Recent data have shown that Tesla sold fewer cars in China in 2014 than it expected.
China is one of the key markets for Tesla Motors Inc (NASDAQ:TSLA) as it is for many global automakers. There are positive projections about auto sales in China as the Chinese middle class grows, which is why automakers are excited about the market. The country also favors green energy, making it a suitable market for the all-electric vehicles that Tesla sells.
Concern about inadequate service centers
To ignite growth in China, Tesla Motors Inc (NASDAQ:TSLA) plans to launch the all-wheel-drive Model S sedan in the country in the coming months. The company also plans to expand its charging networks so that Chinese drivers can have an easier time recharging their cars. One of the major concerns that Tesla has faced in China in the recent times is a misconception about the availability of charging stations in the country. According to Tesla’s CEO, Elon Musk, concerns over recharging of Model S was one of the reasons they were facing weak sales in China. He promised they would address the issues.
Model X launch in 2016
Besides introducing the upgraded Model S in China and expanding the charging network, Tesla Motors Inc (NASDAQ:TSLA) also will target China with Model X SUV. The vehicle will be launched early 2016. Wealthy Chinese drivers love big cars, and the Model X is expected to appeal to their taste.
As concerns the efforts to boost business performance in China, Tesla Motors Inc (NASDAQ:TSLA)’s head of business development said they have a focus to optimize sales process in the country. Diarmuid O’Connell also said they would work to optimize their operations in China.
Underwhelming sales in China
According to a research firm known as JL Warren Capital, Tesla Motors Inc (NASDAQ:TSLA)’s performance in China in 2014 was underwhelming. JL Warren disclosed that less than 2,500 Tesla vehicles were registered in China for the nine months that Tesla delivered vehicles to Chinese customers last year. Musk had cited that selling more than 5,000 vehicles in China in 2014 would be a success for the company. December registration also declined to 442 cars from 471 cars in November. Musk had cited that selling more than 5,000 vehicles in China in 2014 would be a success for the company.
Latest posts by Neha Gupta (see all)
- Is Facebook Inc (NASDAQ:FB) Winning Or Losing In Virtual Reality Space? - May 27, 2016 07:35 AM PST
- No Growth In Costco Wholesale Corporation (NASDAQ:COST)’s 3Q Comps Explained - May 27, 2016 07:34 AM PST
- How Will International Business Machines Corp. (NYSE:IBM)’s Big Data University Help? - May 27, 2016 07:33 AM PST