Tesla seems to have trouble cracking the Chinese market image

Billionaire entrepreneur and co-founder Elon Musk took the time to discuss Tesla’s situation after the electric US automaker started its expansion worldwide, also entering the world’s largest auto market, China, last year.

Chief Executive Elon Musk discussed this week about his company on the sidelines of the Automotive World News Congress held at the Renaissance Center in Detroit, Michigan, in conjunction with the 2015 edition of the North American International Auto Show. Seen as the best luxury electric car in the world (essentially it doesn’t have much competition, but many specialists also said it overwhelms even traditional competing models), the Model S sedan had a tough time during last year’s fourth quarter in China. In its defense it seems that electric cars don’t have traction overall in the country, even as pollution woes mount and the government endorses them with numerous subsidies.

Musk told the audience that even as the electric luxury carmaker’s deliveries in China were “unexpectedly weak” during the last quarter of 2014, the problems were being fixed. He also concentrated on the long-delayed Model X sport utility vehicle – saying that the model, which shares technical characteristics with the Model S sedan, including the battery pack options (65 kWh, 85 kWh and 85 kWh “performance”) – will finally get launched this summer. The model is seen as the key to unlock Tesla’s goal of surpassing 500,000 annual sales by 2020. Musk also told the audience at the Automotive News World Congress the eco maker is not making any money because of investments into new models and towards the expansion of the sales network – but profit should be expected by 2020.

Via Reuters