Tesla CEO Elon Musk said on a March 27 interview with Xinhua that Tesla plans to make a long-term commitment to the Chinese market and aims to localize their product in China within three years. Musk said, “We have a strong market for long-term development in China and hope to establish a local production and design base in China.” Currently, Tesla lovers in China must buy cars imported from the United States.

However, the company has faced quite a few bumps in the road to conquering the Chinese market. Tesla sales in China last year were not as high as the company expected and the company fired a bunch of executives in China. Last year, the number of pre-orders for Tesla cars was much higher than actual sales. These “speculators,” who ordered a car but backed out of the deal caused the illusion of extremely high market demand for Tesla cars in China. The company, therefore, had way too much inventory in China last year because of these fair-weather customers. However, Musk is optimistic for Tesla's future in China, where they will still make tons of money by selling extremely expensive cars to very rich people.

Source: inews.qq.com

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