· Tesla's Chinese market is bleak, Musk said that charging is difficult to get into trouble

The China business, which was once regarded as Tesla's future growth engine, has recently been in a dilemma. Not only is sales unexpectedly weak, but executives frequently leave. Partly affected by the Chinese business, Tesla's overall performance was poor. Shipments in the fourth quarter of last year were far below the target level, and there was a loss of $108 million.
At present, many investors have doubts about Tesla's business strategy in China, but in the view of Tesla's head, Musk, China's poor sales are mainly due to consumers' misunderstanding of the charging pile, he still has China. The market demand is confident, and it is said that even if a car in China can not be sold, the 2015 shipment target can still be completed.
China's market has not started well Since the historical closing high of $286.04 in September last year, Tesla's share price has fallen by 26%. This aspect is affected by the negative impact of the international oil price collapse on alternative energy sources, and on the other hand, investors' concerns about their sales performance in the Chinese market and business strategy.
After a high-profile entry into the Chinese market in 2013, Tesla's performance was not as good as expected. Last month, Musk has publicly stated that Tesla’s sales in China have “significantly” declined in recent months. Although Tesla never separately published sales data for the Chinese market, according to Reuters quoted people familiar with the matter, Tesla China sold only 120 units in January this year.
Such a bleak sales performance should have been completely unimagined by Musk. Previously, Musk had expected sales in the Chinese market to catch up with the US domestic market in early 2015. By 2020, Tesla's annual production will reach 500,000, of which the United States and China will become the two largest markets.
The primary cause of the dilemma is the difficulty of charging. Since the charging standard is inconsistent with the national charging standard, the owner can only charge at the charging station built by Tesla, and the fast charging network established by the State Grid in Beijing and Shanghai has not been used by the Tesla owners. At present, although Tesla has built 1,000 destination charging piles in China and built more than 200 super-charged piles in more than 20 cities in the Mainland, it still cannot meet the demand for long-distance travel. And because of the convenience of the destination charging facility, most Tesla owners still choose to complete charging at home.
However, in Musk's view, what really affects sales is not the charging problem, but the “misunderstanding” of consumers. Due to the doubt about the convenience of household charging, customers are hesitant to purchase electric vehicles. He said at the 11th performance briefing that charging in China is not difficult. "Unfortunately, our sales team told customers that it is difficult to charge in China," it seems to accuse the Chinese sales team of misleading customers.
In addition to charging, how to establish a stable and efficient management team has become another problem for Tesla. Two days before the announcement of the results, Tesla's global vice president and Greater China CMO Jin Jun confirmed his departure, becoming the third outgoing executive of Tesla's China business in the past year. In December last year, Wu Bijun, the global vice president of Tesla and the head of China, who had only served for one year, resigned. Before Wu Biyu joined the company, Zheng Shunjing, the general manager of Tesla China, who introduced the Tesla brand to China, also announced his departure.
Maske’s statement on Tesla’s earnings report on the 11th showed that the company’s fourth quarter revenue was $957 million, up from $615 million in the same period of the previous year, but a net loss of $108 million, compared to the previous year. The scale of losses of 16.3 million US dollars during the same period has significantly expanded. In the fourth quarter of last year, Model S electric vehicle shipments were 9,834 units, which is 12% lower than the sales level expected to achieve the annual target of 33,000 units.
Although the results are lower than expected and frustrated in the Chinese market, Musk is still very confident about the future sales prospects. He said at the performance briefing that the poor market demand in China is not the most important reason for the company's last quarter's performance to be less than expected, and it will not drag down this year's sales. “Even if a car in China can’t be sold, Tesla can still reach the sales target of 55,000 in 2015.”
Musk said that he is working on solving the problems in the Chinese market and expects that the situation will improve by the middle of this year. But the problem in the Chinese market is not a "highly important" problem facing the company, nor will it be a limiting factor. However, he admits that in the long run, Tesla really hopes to succeed in the Chinese market and has done a good job.
According to Tesla, the total shipments of the company's Model S and the upcoming Model X models reached 55,000 in 2015, a 70% increase from 2014, with shipments accounting for 40% in the first half. Musk revealed that the company has received orders for 20,000 Model X and 10,000 Model S inventory orders. By the end of 2015, the company's assembly capacity is expected to reach 2,000 vehicles per week.

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