Tesla Motors Inc (TSLA): Gauging The Chinese Consumers’ Mindset

Tesla Motors Inc (TSLA): Gauging The Chinese Consumers’ Mindset
Unsplash / Pixabay

Tesla Motors Inc (NASDAQ:TSLA) started selling its Model S sedan in China last month. The electric vehicle maker has partnered with Hanergy to expand its Supercharger network. But just building an infrastructure of charging stations may not be sufficient to Chinese consumers. Kandy Wong of Forbes notes that Tesla might be overlooking a very important issue: the attitude of Chinese car owners towards electric cars.

Play Quizzes 4

Tesla and the mindset of ordinary Chinese consumers

Tesla Motors Inc (NASDAQ:TSLA)’s sales team has been targeting wealthy Chinese consumers, who could be in the first batch of its customers. But, says Kandy Wong, the ordinary Chinese consumers should eventually be the key objective. Many Chinese families are still skeptical of committing to a new technology car. Practical concerns weigh heavily on the minds of Chinese people.

[Exclusive] ExodusPoint Is In The Green YTD Led By Rates And EM/ Macro Strategies

Invest ESG Leon CoopermanThe ExodusPoint Partners International Fund returned 0.36% for May, bringing its year-to-date return to 3.31% in a year that's been particularly challenging for most hedge funds, pushing many into the red. Macroeconomic factors continued to weigh on the market, resulting in significant intra-month volatility for May, although risk assets generally ended the month flat. Macro Read More

Last week, the China Association of Automobile Manufacturers launched a new energy car promotion center in Beijing. The center will exhibit the history of electric vehicles and explain China’s preferential policies along with the distribution of recharging stations. The announcement was an important move considering the concerns ordinary Chinese drivers have about electric cars. A Chinese consumer told Wong that electric cars mean “trouble.” Besides the price, there are a number of pragmatic questions yet to be answered.

Should Tesla spread awareness about EV in China?

Electric vehicle makers, whether it’s BYD or Tesla Motors Inc (NASDAQ:TSLA), haven’t provided consumers much information on how to drive an electric vehicle like Corolla or Buick. They need to spread awareness about a variety of things including safety, durability and recharging. It’s hard to predict how long the transformation from gasoline to pure electric cars will take place. Going by the transition from pickup trucks to small cars, it may take up to 20 years.

Chinese people Kandy Wong talked to said electric car isn’t even a topic among their circles. Chinese consumers focus on practicality. If they think a new technology, no matter how appealing, might expose them to some hang-ups or unresolved issues, they will drop the idea. Tesla Motors Inc (NASDAQ:TSLA) has garnered attention of the Chinese media, ordinary consumers are like bystanders waiting to see if Tesla can succeed in the country.

Tesla Motors Inc (NASDAQ:TSLA) shares jumped 2.20% to $195.76 at 1:14 PM EDT on Monday.

Updated on

Vikas Shukla has a strong interest in business, finance, and technology. He writes regularly on these topics. - He can be contacted by email at vshukla@wordpress-785388-2679526.cloudwaysapps.com.
Previous article Credit Suisse admits US tax evasion guilt
Next article How to Spot Online Liars

No posts to display


  1. Tesla says its sales in China will surpass the Total sales in the US by 2015. But agree on this point that they should understand the psychic of Chinese consumers as its a different demographic area.

  2. With the exception of regenerative braking and; hence, the ability to drive an electric vehicle with essentially once pedal, there is no major difference between driving an ICE vehicle and an EV. To claim that no one has taught the Chinese how to drive an electric vehicle is absurb! There is no need to teach someone how to drive an EV, just let them try it out so they can see how easy it is.

Comments are closed.