Friday, July 12, 2024

Tesla closes its first retail showroom in China over strategy shift

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Tesla closed their first showroom in China in the city of Beijing Parkview Green. The purpose of the closure is to minimize rental costs, and will move to another location that is cheaper and affordable for Tesla users. The plan is also in line with Chief Executive Elon Musk’s goal to improve customer service.

From existing reports, this plan was launched in September 2022, which previously closed several showrooms in big cities such as Beijing due to Covid-19 restrictions, Reuters reported.

A staff member confirmed the closure of the showroom, saying the windows of the venue had already been closed and were being replaced by the next tenant.

“Their contract with us expired and Tesla decided not to renew it,” the staff member said.

As is known, China is one of Tesla’s largest markets, as evidenced by sales data in 2022 which reached 318,151 units.

In fact, the figure is up 55 percent from the previous year according to the China Passenger Car Association. In comparison, overall sales of electric and hybrid vehicles increased 113.2 percent.

The increase in this figure was also supported by the price of several Tesla models which fell 9 percent, such as the Model 3 and Y amid price spikes of several well-known manufacturers.

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