Tesla’s Apple aspirations may have its detractors, but the automaker’s ongoing problems in China are likely to do more harm than said detractors.
Forbes reports Tesla’s China operations are closing 2014 on a down note, having brought over 444 units in December compared to 747 in November. Further, 45 percent of all Teslas have yet to be registered with local authorities, and therefore, have yet to legally hit the road. The country also accounted for 15 percent of the automaker’s global sales in 2014.
The issue is the brand’s cache with Chinese consumers, who bought the Model S because of its trendiness, not because it’s better for the environment. Thus, Tesla’s popularity will last as long as the next trendy vehicle from a competing luxury automaker.
CEO Elon Musk’s current solution? Fire or demote those “not on a clear path to positive long-term cash flow.” The publication says this approach will only “erode his power base and credibility,” aspects he needs to maintain if he intends to keep to the path of long-term sustainable growth and stability.
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