The American high-tech electric automobile manufacturing corporation, Tesla Motors, has suffered from a decline in Sales. Tesla news confirms the report that the vehicle-manufacturing giant has suffered from a huge setback, as nearly 50% of its 4800 Model S cars transported to the People’s Republic of China have not yet been sold. This is sufficient to explain that the Chinese demand for the electric automobiles is quite low. This decline in Sales has forced the car producer to lay off 200 workers, as the firm believes that those workers have failed to promote and market the electric automobile in the second largest economy of the world.
The Chief Executive Officer of the corporation, Elon Musk, has accepted the sales problems. It is expected that Mr. Musk would try his best to capture the country’s market. Tesla news today stated that the Chinese management of the company has failed to progress in the right direction. Approximately 2300 of the unsold cars are standing at a Chinese Port and Shanghai-based dealership lot. Others are standing at a facility owned by largest Chinese supplier of the Mercedes-Benz in the capital, Beijing.
Mr. Musk believes that his company did not performed well in the most populated country and his sales team had failed to inform customers about the procedure of charging the electric car. Though the number of electric cars supplied to the nation is quite low, the growth of Tesla Motors is being calculated by the changes in the demand for the electric automobiles. The monthly delivery of cars by the manufacturer has declined from 208 cars to 120 cars, but targets to sell 500,000 cars in 2020.
The firm wishes to dominate the market soon. The business has started to establish and operate rapid charging stations known as “super chargers”. These stations offer free energy to owners of Tesla Model S that can power 80% of the battery in 20 minutes.
The CEO of the company also believes that the sluggish demand for the cars is due to the inaccurate information provided to the car users. It currently owns 60 charging stations in China. Latest Tesla news stated that the government of China is interested in promoting the usage of electric cars in its highly polluted cities, but it encourages its citizens to buy locally produced electric cars rather than imported cars. Now it is yet to be seen that to what extent Tesla Motors is able to capture the desired market.
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