· Can Musk's visit to China solve the problem of Tesla in China?

Tesla co-founder and CEO Elon Musk is now at Tsinghua University in Beijing on March 26. Qiu Yong, the newly appointed president of Tsinghua University, met with the big man of Tesla.
According to media reports, Musk came to China to participate in the 2015 annual meeting of the Boao Forum for Asia. The Boao Forum for Asia Annual Conference 2015 will be held in Boao, Hainan Province, China from March 26th to 29th. The theme of the annual conference is: Asia's new future: Towards a community of destiny.
Presumably, the content of Boao Forum for Asia will cover the topic of air pollution control and the development of new energy automobile industry. Musk should not only meet acquaintances.
According to statistics, in 2014, Tesla's sales in the Chinese market were not as good as expected. According to the 2014 financial report, Tesla's production in 2014 was 35,000 units and its sales volume was 31,700 units. Among them, sales in North America were 17,400 units, accounting for 55% of total sales; sales in Europe were 9,500 units, accounting for 30% of total sales, and 4,750 units in Asia Pacific, accounting for 15% of total sales.
At the same time, the news of Tesla China layoffs is flying. In the past two or three years, the frequent changes in Tesla's top management have already shown that Tesla's development in the Chinese market has encountered great problems.
So, can Musk use this trip to China to solve the problems that Tesla faces in China?
Fundamentally speaking, Tesla's market performance today is very normal. Tesla's biggest mistake is to be too optimistic about his development in the Chinese market.
Due to the high price of Tesla's own products, the market population it faces is destined to be niche. Although Tesla has great attention in the Chinese market, there are very few who can truly become Tesla consumers.
Therefore, the prospect of Tesla's development in the Chinese market, if not in the product positioning, do not even change the two CEOs.
Obviously, Tesla himself did not really recognize the problem. The media quoted Tesla Musk as saying that "the downturn in Tesla's sales in China is mainly due to consumer concerns about cruising range and charging facilities."
To solve air pollution, developing a new energy vehicle market is an inevitable path and model. Conversely, from the perspective of the government, the size of the new energy vehicle market is more or less related to the strength of automobile companies, but related to air pollution control.
Obviously, Tesla high-end luxury electric vehicles with a price of 700,800,000 or even millions of yuan are limited in their ability to drive sales of new energy vehicles. In other words, Tesla's high-end positioning makes the product's influence and effect on air pollution control a big discount. Obviously, the implementation of low-end new energy vehicle products can achieve the goal of air pollution control more quickly.
Of course, if Tesla can achieve localization in China, it will effectively lower the price of auto products. Perhaps, this time, Musk will have the possibility to negotiate further cooperation with potential partners in China. However, from the current point of view, the localization strategy is not the most important. For Tesla, how to launch a cheaper electric car as soon as possible is the key to the problem.

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