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Tesla Motors Inc (NASDAQ:TSLA) CEO and founder Elon Musk had an impression that his vehicles were demanded in large numbers in China, because of which inventories were stocked in sufficient numbers. But much to his dismay, the local speculators misled him, and the demand for electric cars in China is not as high as he believed it to be, informed Musk at the Boao Forum in Hainan province.

Excess inventory, ‘speculators’ to blame

Quoting Musk, the official news agency Xinhua reported that there were several number of resellers, who cancelled their orders on the arrival of the cars. “China is the only place on earth where we have excess inventory. We are essentially selling cars that speculators ordered but we were unable to deliver,” he said.

Import of 16,000 units of Tesla S vehicles was made into China. However, the whipping up of demand by the speculators became the prime reason for improper licensing of those vehicles.

A downfall of 45% from January was noted in the number of Tesla Motors Inc (NASDAQ:TSLA) Model S licensed in February, according to Equity research firm JL Warren Capital.

Tesla CEO optimistic

Tesla Motors Inc (NASDAQ:TSLA) CEO, who holds a prominent position in the tech industry, wanted to tap the benefits and huge sales opportunities in the largest economy of the world. The company has been facing problems in making sales in China, but the founder has plans of continuing making his efforts.

Sales in China have been growing at a steady pace for the last three months, and this makes Musk optimistic in the Chinese automobile market. Musk stated the commitment between with China is a long-term one, and it aims at establishing both local production and local engineering in the region.

Tesla Motors Inc (NASDAQ:TSLA) began taking orders for the Model S sedan since mid-2013 in China. Delivery began to the customers in April last year. A report from Xinhua informed that there are serious concerns among the Chinese customers that the charging network of Tesla Motors Inc (NASDAQ:TSLA) is limited, and therefore, the company is making efforts for expanding the network. Also, the customers are being offered with mobile adapters so that they can charge anywhere.

6 COMMENTS

  1. You Tesla fan boys have some severe anger management, reading comprehension and ignorance problems. The answer was already posted.

    The reason that the demand is so low and so many people have canceled their order, is because the Tesla is not well-suited for China. China lacks much of the infrastructure for charging in China. eLOON Musk vastly overestimated the demand in China. There may not be much uber rich in China that can afford an overpriced unreliable ugly looking car like a Tesla model S. The Uber rich in China tend to prefer to be chauffeured in much more luxurious vehicles. China may not be suitable for the Tesla model S because of culture, politics, economics and lack of adequate infrastructure.

  2. “The glut of teslas in China is not only because of canceled orders from speculators. The reason that the demand is so low and so many people have canceled their order, is because the Tesla is not well-suited for China.”

    If the glut of Model S in China is not from cancelled orders, then what is it from?

  3. Mark my words Eloy will make a crazy announcement about some upcoming product that’s supposed to change the world and the stock will immediately go up. Then the product turns out to be completely underwhelming and the stock drops again.

  4. Elon Musk is a liar. The glut of teslas in China is not only because of canceled orders from speculators. The reason that the demand is so low and so many people have canceled their order, is because the Tesla is not well-suited for China. China lacks much of the infrastructure for charging in China. eLOON Musk vastly overestimated the demand in China. There may not be much uber rich in China that can afford an overpriced unreliable ugly looking car like a Tesla model S. The Uber rich in China tend to prefer to be chauffeured in much more luxurious vehicles. China may not be suitable for the Tesla model S because of culture, politics, economics and lack of adequate infrastructure.

    Elon Musk and Tesla fan boys ought to be in prison like Kevin Trudeau. Elon Musk and Tesla fan boys fraudulently claim the batteries for the Tesla model S are green, environmentally friendly, landfill safe, nonhazardous, non-toxic and contain no heavy metals. Their lies are even debunked by the emergency responder guide for the Tesla model S, that indicate that Tesla batteries contain hazardous toxic materials and heavy metals.

    Deepak Ahuja, Tesla Chief Financial Officer dumped a lot of his Tesla stock recently.

    Reportedly there is 45% less registered teslas in China in February. Reports claim that Tesla only imported 10 cars in January and 63 and February.

    The Tesla model S still seems to have a problem with unintended acceleration. Wednesday a Tesla driver crashed into a pharmacy in palm springs. The driver was so vain, that she went to have her hair done while police investigated the crash. Was the driver confused by teslas kiddie car pedal layout and operation? Or are there other design and or manufacturing problems contributing to the unintended accelerations?

    Reportedly many that have bought teslas are furious that they cannot find sufficient charging in China. Allegedly when Tesla started selling teslas in China, Tesla did not make universal mobile chargers available to their Tesla customers that was compatible with the electrical grid in China.

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