Tesla Motors Inc (NASDAQ:TSLA) is looking to penetrate the Chinese market, but unlike the other high end automobile brands, who are focusing on the second tier cities, Tesla states that its growth in 2014 will primarily focus on the first tier cities, says a report from Chinadaily.
Targeting first tier cities
Veronica Wu, vice president at Tesla Motors Inc (NASDAQ:TSLA) China said that the company is expecting much growth from China, and would open more showrooms in the first tier cities to woo wealthy buyers from across the country.
“Our challenge is how to satisfy the high demand in China,” she told Chinese web portal 163.com. Wu, who earlier held the post of general manager of education and enterprise At Apple Asia, joined Tesla three weeks ago.
Ever since the company opened its first showrooms in November, there have been hundreds of high-end Tesla electric cars ordered and pre-ordered. Tesla has still not installed charging stations in the country, but buyers in China are not missing on the opportunity to deposit 250,000 Yuan for any one of the two available models of Tesla Model S and Model X, which has been available for online order since December 14.
Tesla lacks a local name
Wu stated that in China Tesla Motors Inc (NASDAQ:TSLA) has hired more than 20 staff members and further hiring is on its 2014 work agenda. Tesla, as of now, has not given any appropriate Chinese name to its brand. Earlier, Chinese internet users did not like the translation Tuo Su Le. The netizens termed the translation as a very narrow minded version to represent the brand value of an environment friendly luxury car.
Tuo Su Le is a Chinese name in which Tuo means expands, Su indicates speed and le means happiness. The phrase in Chinese pronunciation could also be interpreted as “free from vulgarity” or “refined”, which may mislead the buyers.
An accurate Chinese pronunciation of Tesla Motors Inc (NASDAQ:TSLA) would be Te Si La, and it has been registered since 2006 by local businessman Zhan Baoshen, who did not agree upon giving up the trademark.
Apart from the lack of local name, Tesla Motors Inc (NASDAQ:TSLA) is also facing other issues in China. According to a report from Reuters, the company has not fixed the price of the Model S as China is still to make a decision regarding the tax policies on imported cars.