Tesla has now formally suspended new orders for its Model S and Model X cars on its Chinese-language homepage. The agreement on this major development was first reported by Reuters on Friday. This reversal is a major departure from their previous plans to withdraw these popular noted imported models completely from the Chinese market.
At the moment, new customers are unable to order the Model S and Model X via Tesla’s WeChat mini program. Tesla primarily uses this account for vehicle sales in China. This suspension is in stark contrast to Tesla’s listed strategy in one of its most important markets in mainland China.
On Friday, Reuters last saw the Model S and X on Tesla’s Chinese website and WeChat. They verified that new orders for these fancy electric cars are spread thin as well. Tesla’s announcement is especially notable given growing competitive pressures in China’s EV market. At the same time, local champions are achieving overwhelming power in this space.
Together, the Model S and Model X served as the luxurious, elitist foils to Tesla’s much more proletarian fare. Both imported models have gotten a lot of buzz for their advanced technology and overall performance. Still, the suspension of new orders may reflect a change in priorities or a reaction to fast-changing market forces.
The Reuters Beijing newsroom also requested a comment from Tesla regarding the suspension beforehand. Instead, they received a rather abrupt response. This unprecedented lack of transparency has many industry watchers perplexed about what Tesla’s intentions for the region are.
This decision would have effects beyond future sales and marketing strategies. It will likely further underscore the fundamental challenges Tesla is starting to encounter more widely as competition increases and consumer preferences shift.
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