Tesla Motors, the California-based electric vehicle manufacturer, has a strong chief executive – Elon Musk, the company’s billionaire entrepreneur and co-founder. Now the latter, dissatisfied by the puny China deliveries, is reportedly preparing to shake overseas management.
According to sources that have knowledge of the company’s strategy Chief Executive Elon Musk is ready to fire overseas executives due to weaker than forecasted sales of the company’s luxury electric Model S sedan. The dismal sales are now also casting a doubt on the automaker’s ambitious global expansion plans. According to one of the people with knowledge of the matter, who talked to Reuters under condition of anonymity, Tesla only delivered around 120 units in China last month, falling well below the targeted sales for the period. The aggressive management strategy called for China sales to quickly rival those in the United States, according to CEO Elon Musk. Additionally, the problems for the company began last year, with Tesla announcing in 2014 the departure of two of its China executives, just months after initial deliveries began.
Last month Musk himself acknowledged that China deliveries were “unexpectedly weak” during the final months of the year, contending that “we’ll fix the China issue and be in pretty good shape probably in the middle of the year.” According to one of the source, the manager was far more blunt in an internal email to regional managers – seen by Reuters – in which he said managers would be fired or demoted if they don’t correct the problematic sales situation.