Weak Tesla Motors (NASDAQ:TSLA) Sales in China: Stocks fall by 6%

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In a recent announcement it was revealed by Elon Musk, that sales of the company in China were not as impressive as had been previously anticipated. As a result shares for the company dropped by over 6% at the NASDAQ stock exchange. It is no secret that Tesla Motors Inc. (NASDAQ:TSLA) has been facing increasingly tough competition in the industry for automobiles by the big players. Now, to pile up on the burdens, sales figures in the Chinese market for the 4th quarter of 2014 have been reported at a much lower point than initially anticipated.

This puts Tesla Motors Inc. (NASDAQ:TSLA) in a tough spot with investors who have been waiting for some sort of reassurance by the company for quite a while now. As a result of this announcement, investors of Tesla Motors Inc. (NASDAQ:TSLA) have grown wary of the company, either pulling out investment or discouraging investment into the company at various forums. Previously, Tesla Motors Inc. (NASDAQ:TSLA) stocks listed on the NASDAQ stock exchange were going strong amidst hopes the automaker must be performing well enough in terms of business.

However, with the announcement by CEO Musk at a recent press conference, the very foundation of such a belief has been shook and has shocked investors. According to Musk, soft sale figures in China have resulted mainly due to increasing perception by the average consumer that it would be difficult for them to charge the cars due to a lack of infrastructure within the country to cater to the needs of Electric Vehicles (EV). Latest Tesla Motors Inc. (NASDAQ:TSLA) products have been well catered to in the US.

There supercharging stations have been set up all over the country by Tesla, which allows consumers to charge up their vehicles in a much faster manner compared to any other charging alternative that they may possess anywhere else. Although charging stations may be present within China, either personally or commercially, absence of Tesla supercharging stations poses an inconvenience the average Chinese consumer may simply refuse to bear.

However, Chinese consumers should not lose trust in the company’s products just yet. To cater to the Chinese market, Tesla Motors Inc. (NASDAQ:TSLA) recently struck a deal with China Unicom to develop over 400 charging stations spread over 120 cities of China, mostly at existing retail outlets of China Unicom. According to Musk, the changing perception of the Chinese market is not solely due to inconvenience posed by the absence of dedicated charging stations.

It is also in line with the increasing supply of oil in the international market, which has driven down oil prices significantly all over the world, and also the demand for EVs that Tesla Motors Inc. (NASDAQ:TSLA) deals in. Musk has high hopes with the future of Tesla Motors Inc. (NASDAQ:TSLA). According to him, by 2025, the company is looking at selling millions of vehicles all over the world, especially a growing sales figure in China.

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