Tesla Inc TSLA is reassessing the way it sells electric cars in China and is considering closing some showrooms in conspicuous malls in cities like Beijing that have seen traffic slump during the pandemic restrictions 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 offer repairs. The move comes after Tesla worked to meet Elon Musk’s The goal is to improve service for existing customers, many of whom have complained of lengthy delays, the report said.
Tesla didn’t immediately respond to an email asking for comment.
On September 8, Musk responded to a tweet by saying, “Note, I personally put a lot of time into evolving the Tesla service to make it great. Hopefully this will begin to be felt by Tesla owners.”
Tesla plans to accelerate hiring of technicians and other personnel for service jobs in China, the report said. Tesla’s Chinese recruitment website showed more than 300 vacancies for service jobs on Thursday, it said.
take experts: Yale ZhangManaging Director of a Shanghai-based consulting company Automobile Perspective Reuters told Reuters there was no need to open showrooms in expensive malls, especially when the repair business has become lucrative. “It makes more sense to keep only one or two showrooms downtown to maintain brand positioning, but move more to the suburbs,” Zhang said.
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