Tesla's China expansion faces problems
US electric carmaker Tesla's China expansion is stuck in neutral gear. Tesla's 800 square meter retail space--its largest in the world, is still vacant. The company may have underestimated market barriers in China.
This is model S, a pure electronic car.
Its maker--Tesla is growing fast in the US market.
The ten year old company just turned its first profit in the first quarter of this year. Tesla wants to introduce the brand to China.
But the expansion has been a steeper uphill battle than it expected.
It takes at least six months to get all the administrative approvals.
That's not all. Tesla's trademark in Chinese and English have been registered a long time ago by a Chinese businessman. Tesla is willing to spend 2 million yuan to buy back its labels, but the businessman is asking for $30 million.
Analysts say Tesla is unlikely to get access to the Chinese market this year. Even when it does, sales could be underwhelming, due to low consumer recognition for e-cars and under developed infrastructure.
