Slashed prices have given Tesla’s China sales a pop, but analysts – and even fans – warn the US 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.
Most immediately, Tesla’s January price cuts drove deliveries of its China-made vehicles up 18% from December. Tesla’s thick profit margins have put it in a position to take a price war to competitors in China and beyond, analysts say.
But they say Tesla has lagged competitors in China in introducing new models, improving navigation systems and adding luxe interior touches or white-glove customer service to serve the developing range of consumer preferences for EVs.
