Tesla is Facing Critical Challenges In China

In a short time after its entrance into the Chinese market, Tesla has already attracted a large flock of fans. The “Tesla Fever” has just rose, when a news broke out that core employees of Tesla China, including the general manager of China, Kingston Chang (郑顺景), have resigned from the company.

Elon Mask has been showing great confidence in the development of Tesla in Chinese market. However, after the leaving of Chang and a couple of core members in the team, whether Tesla will be able to continue its peddling of “conceptually successful” electric motor car becomes a puzzle.

In Mask’s estimation, by the year of 2020, the worldwide sale of Tesla will reach 250 to 500 thousand. This year on the result statement held in Feb 19th, he further stated that the initial demand of Chinese market is “very strong”. Tesla will deliver goods to Chinese market in the first quarter this year. Driven by Asian market, especially China, the estimated shipment will increase from 22.5 thousand to 35 thousand. “If everything goes well, the shipping weight of Tesla Model S will catch up with that in the U.S. by 2015 and ranks the first around the world.” Mask also said that the production of Model S will be localized, which will reduce cost in tariff by 114.9 thousand yuan per motor car.

“Although Tesla has brought up a fever in China, in fact, its bark is still worse than its bite. The success in propaganda does not cover up the hardship it will face in China. ”A famous car commentator said.

Up to today, Tesla is still off the list of new car sales catalogs posted by MIIT. The 3C certificate acquired by Tesla in February is only one of the necessities Tesla needs to legally sell cars in China. In spite of that, it also faces such predicament as charging point, license and regional protection.

Regional protectionism is a problem faced not only by Tesla, but all the motor car companies in China. Some professionals analyzed that the barrios for the motor car market development in China is reginonal protectionism.

Original post on Sina.