Slashed prices have given Tesla's China sales a pop, but analysts, and even fans, warn the U.S. automaker needs to up its long-term game to avoid choking on the dust of fast-moving rivals in the world's biggest electric vehicle market.
"The aging product line is a real problem for Tesla," said Yale Zhang, managing director at Shanghai-based consultancy Automotive Foresight. "Once BYD and other EV startups follow to lower prices, the effect of Tesla's price cuts could vanish in the blink of an eye."Tesla's self-driving software and navigation systems, touted by CEO Musk as competitive strengths, have also come under criticism from customers about slow updates and errors on Chinese roads.
"This is a sharp contrast with Nio, Xpeng and Li Auto, whose navigation aids have been working almost perfectly," said Chang, who also drives a Nio sedan. It has also been studying how its Chinese rivals, led by BYD, win over customers in showrooms, especially in smaller cities, the person said, declining to be identified citing lack of authorisation to speak to media.
Tesla, which early this year promoted its China Chief Tom Zhu to head global sales and production, is also giving its China sales team a more direct line to product development engineers to provide local feedback, the person with knowledge of the matter said.To be sure, the Tesla design aesthetic, with sparse interiors and synthetic leather, still appeals to many.
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