Tesla Stock up as It Mulls China and Germany Strategy Changes
Tesla stock performed marginally well despite the news developments.
Tesla (NASDAQ:TSLA) is considering changing its retail strategy in China. The American electric car manufacturer would make the switch and concentrate on less expensive storefronts in suburban areas while closing other showrooms in premium places. This is according to Reuters, which cited two anonymous sources, These plans havent been officially announced by Tesla (NASDAQ:TSLA), but the business has experienced good sales in China, its second-largest market. At 76,965 Chinese-made vehicles delivered in the month of August 2022, sales more than tripled from the previous month.
The company owns the majority of Teslas storefronts; it does not rely on dealers like other traditional automakers. Furthermore, it offers online car sales. It now has greater room to modify a retail strategy initially inspired by Apples retail locations. When contacted for comment, Tesla didnt respond right away.
According to the China Passenger Car Association, the American manufacturer sold 400,000 Model 3 and Model Y vehicles manufactured in China in the first eight months of the year, with 60% of those vehicles being sold locally. Over a year earlier, that was an increase of 67%.
Additionally, Tesla will broaden its repair capabilities and hire more service personnel and technicians in China as a result of the strategy adjustment. Prioritizing advancing Tesla service to make it fantastic is something Elon Musk has previously stated on Twitter.
According to Reuters, the manufacturer has more than 300 service roles advertised on its China employment website. Since there is a shortage of space in high-rent areas like Beijing and Shanghai, more than half of Teslas more than 200 outlets in China do not provide repair services. TSLA stock was trading modestly higher in premarket hours.
Tesla stock upbeat despite German factory plans news.
A vote on the development of Teslas Gigafactory in Germany has been postponed, according to German news outlet RBB24, which published its report on the matter on Wednesday. The outlet mentioned the mayor of Grunheide, where the factory is located, as the source confirming the delay. The decision to postpone the vote represents a turnabout from the initial approval of the expansion project by a municipal committee in June. There is now no timetable for a future discussion of the expansion vote; it has simply been crossed off the committee agenda. Tesla stock (NASDAQ:TSLA) fared well on Wednesday despite the setback.
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Author: Jowi Kwasu
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