Tesla Inc TSLA is re-evaluating the way it is selling electric cars in China and is considering winding down some showrooms located in flashy malls in cities like Beijing that witnessed a slump in traffic during pandemic restrictions, reported Reuters, citing two people with knowledge of the plans. China is Tesla’s second-largest market.
Why It Matters: The shift would put more focus on stores in less-expensive suburban locations that can also provide repairs. The move comes in the wake of Tesla working to meet Elon Musk's target of improving service for existing customers, many of whom have complained of long delays, the report said.
Tesla did not immediately reply to an email seeking comment.
On Sept. 8, Musk replied to a tweet saying, “Note, I am putting a lot of time personally into advancing Tesla service to make it awesome. Hopefully, this is starting to be felt by Tesla owners.”
Tesla is looking to accelerate the hiring of technicians and other staff for service jobs in China, the report stated. Tesla's China recruitment website showed more than 300 openings for service jobs as of Thursday, it said.
Expert Take: Yale Zhang, managing director at Shanghai-based consultancy Automotive Foresight told Reuters it's not necessary to open showrooms in expensive shopping malls, especially when the repair business has become lucrative. "It makes better sense to keep only one or two showrooms downtown to keep the brand positioning but move more to suburbs,” Zhang said.
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