Tesla car sales tanking in China

[JulianWilliams]

http://www.businessinsider.com/elon-musk-just-said-sales-are-tanking-in-china--stock-is-down-5-2015-1

They're blaming the low number of chargers apparently. I think it might be more due to the Chinese people's more conservative nature. They know petrol cars work just fine and they stick to them.

[Drew Dowdell]

Low number of chargers would be a deterrent for sure.  There has been active work done in the US to create a solid charger network... that hasn't happened on the same scale in China.

[G. David Felt]

Makes one wonder if GM with the Chevy BOLT will do better by also pushing a charging network.

[JulianWilliams]

Well they do make a lot more sales in the US, most of them probably to Silicon Vally IT types and executives trying to be hip, so it does make sense for them to invest more in the US network but one has to wonder, if they'd manage to sell huge numbers of them, would they be able to keep up with building charging stations?

[dariel2323]

It may be the low number of chargers, this rumor may be true. I saw the china network and there are very few for so many people compared to the United States. There are very few but is only at the moment. Then will be more in each corner.
 

Edited February 20, 2015 by dariel2323

[Drew Dowdell]

Well those are just the supercharger locations.  I would expect that in the cities, the number of generic charging stations is rather limited as well. 

[G. David Felt]

Plus my reading tells me that China companies are trying to push their own connection standards for their own EV auto's so I am sure that is hurting with trying to have a single standard.

[hyperv6]

It is not the number of chargers.

 

I read a story the other day laying out the dealer network Tesla has and it is very weak over there. They have a small number of dealers and the greater issue is the dealers are not in the areas with the most money where people who can afford these cars live.

 

Added to this that Tesla is not working in the normal networks over there like most deals are. These groups are the ones who hold influence with the government to get things done. If Musk hates our system he surely will find this one even more difficult.

 

Right now there has been little signs that they are correcting the low staff and limited number of dealers so things may not improve much over there soon.

 

As for the chargers the kind of people over there that can afford this car can afford to put chargers any where they will need one. This car will be for he affluent only over there and most are wealthy enough to do about what ever they like.

 

China is just a whole different ball game and while it is a shame all other MFGs have had to join in with local MFG it also has saved them the trouble and mistakes that they would have made on their own. China is a very corrupt government and they are learning greed like the rest of the world. So far they have been able to control things there and as long as they do you have to play by their rules.

 

The real key is Tesla has been getting away with a lot here for a long time with Wall Street. People are now starting to get restless with them and at some point they will make demands of them that they may or may not be able to deliver on. They have been willing to wait on profits but there will be a day they will make a call and they may not be able to answer.

 

Musk for so long has played a game of zig zag as one Wall Street broker stated. He deflects and darts from one topic to another. His defections have been too many of late and are becoming noticeable.

 

I think this will be an interesting year for Tesla and will be a great test of the investors. This game is only going to get more and more difficult for them as they get other makers in the segments they want to be in.

Also some wonder how the X if and when it comes out will effect S sales. If it cuts into them it could be an issue.  They need a lot of volume to use the batteries the Reno plant will make. Most other makers will not go to them unless they hold some real improvement over what most are using now. I do not expect that. Also storage for home is not something that is going to take many batteries anytime soon. That is a very slow growth segment and will take a lot of time.

 

I have cheered Tesla to make it as their failure will damage the segment if the others are not in it yet. But I really question the goals the predicted grow from Elon. At least he is the one with the most to lose but I hope most people do no lose their investment if things go south.

 

 

[balthazar]

If I had bought into Tesla stock back when it was in the low double digits, I absolutely would have taken my profit by now.
 

I'm not convinced it's dealer allocation; Tesla sales are not allowed in my state yet I see a my-state-plated Tesla every day or 2.

More likely; the idea of an electric car probably doesn't carry nearly the same social weight in China as it does in the U.S..

[ocnblu]

What on earth social weight does it carry in the US?  I see them as fools.  Edsel buyers, of a sort, buying a hype.

[balthazar]

You do, but you know there's plenty of people who are 'part of a greater consciousness', who feel they need to 'step up' and 'do their part' to 'Save The World', and all that. Thusly, electric car buyers. Call 'em, the 3%ers if you like. I don't actually disparage them, but it's certainly not for me.

 

- - - - -

What about an electric Edsel? Call it the Electrasel' and turn the 'horse collar' into a giant plug receptacle.

[Drew Dowdell]

You do, but you know there's plenty of people who are 'part of a greater consciousness', who feel they need to 'step up' and 'do their part' to 'Save The World', and all that. Thusly, electric car buyers. Call 'em, the 3%ers if you like. I don't actually disparage them, but it's certainly not for me.

 

- - - - -

What about an electric Edsel? Call it the Electrasel' and turn the 'horse collar' into a giant plug receptacle.

 

That would probably start a trademark dispute.