Tesla Motors Inc (NASDAQ:TSLA) may be flourishing in the US but the electric car maker is facing a plethora of problems in emerging markets like China. An article on Forbes said that monthly imports of Tesla Motors Inc (NASDAQ:TSLA) are declining rapidly, a red flag for the company. China is not a friendly market for the US companies. There are regulatory issues, tax problems and sales declines. Tesla imported only 444 Model S cars in December 2014, down from 747 cars imported in November 2014.
The problem is even bigger than the declining imports for Tesla Motors Inc (NASDAQ:TSLA). The source mentioned that out of all the Tesla cards imported in China, 45% are unregistered because of regulatory issues. This means that almost half of the cars imported to China by Tesla cannot run on the roads.
Cultural and demographic issues are creating problems for Tesla Motors Inc (NASDAQ:TSLA) in the Chinese market. The source said that Tesla started its Chinese operations with an intention that pollution problems in the country will be a driving factor for its sales. But more than 80% of the people in China who have got Tesla Motors Inc (NASDAQ:TSLA) cars say that they never bought Tesla Motors Inc (NASDAQ:TSLA) cars because of its Green features; they bought it because its famous, status indicator and trendy around the world. The lack of governmental awareness in push regarding green cars in China continues to hurt Tesla Motors Inc (NASDAQ:TSLA).
The article said that Tesla CEO has threatened his team in China that if they continue to work ignorantly, the whole team will be fired. Tesla might gain short terms goals by these management strategies, but Chinese markets need complete re-evaluation of Tesla Motors Inc (NASDAQ:TSLA) policies to show results.
Daniel Benton’s Andor Capital Management is one of the shareholders of Tesla Motors Inc (NASDAQ:TSLA), having around 1.25 million shares of the company.
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