Approval Authority - Tesla's business stagnation in China

Tesla Beijing Experience Store is located on the first floor of Beijing Kiu Fu Fang Grassland Shopping Center, with a total area of ​​nearly 800 square meters. As early as two or three years ago, Tesla had entered into cooperation with the shopping center and set a Tesla car shop in 2012. According to the “Implementation Measures for Automobile Brand Sales Management”, Tesla needs to register and set up a company in China to obtain the right to operate car products before it can start business. However, nearly a year has passed and Tesla’s Experience Store has no official business schedule.

Why has TESLA, a maker of electric vehicles that has become so popular in the U.S. market, stalled in China? On July 23rd, the sales director of Tesla China, Shen Qi, said in an interview with a media reporter that Tesla’s first experience shop in mainland China has not yet opened its business. The main reason is that it has not yet fully received the relevant government departments. Approval documents.

"Now, we can't estimate when the Beijing experience store will be able to operate." Shen Qi was helpless. "Now it can only wait."

As for the reason why Tesla’s Beijing store has not been opened, Shen Qi frankly stated that the delayed operation of Beijing Tesla Experience Store was forced. Tesla’s Beijing Experience Store must be officially opened, and Tesla must first establish a company. Due to little knowledge of the Chinese market environment, Tesla did not handle registration of the company in advance. It is understood that foreign-funded registered companies need relevant approvals from the Ministry of Commerce and the State Administration for Industry and Commerce. The process generally takes 4-6 months.

It's more than just trouble. Tesla and other foreign car brands have different business models in China. They have adopted a direct operating model in China and have no distributors. Pursuant to the "Implementation Measures for the Management of Automobile Brands", car dealers have obtained authorization from their suppliers and filed with the local industrial and commercial bureaus. After obtaining approval, car dealers can sell automotive products. Tesla will need to obtain the brand management license after completing the registration of the company. This still requires the approval of the Ministry of Commerce, the Trade and Industry Bureau and other relevant departments, and the approval process will take 3-6 months.

For Tesla, waiting for the approval of the loss is not just the monthly rent of several hundred thousand yuan, but also the speed of business expansion in China.

It is probably the unexpected problem of George Blankenship, Tesla's sales director, who has encountered the problem of approval in China. In January of this year, Blankenhep announced the first establishment of a dealership in China and opened it in the spring. This is the second move of Tesla Motors in China after its Hong Kong store.

“As of now, we have only completed a quarter of all the procedures for registering companies. If no one helps us to speed up, we may wait until next year to operate.” Shen Qi said that they are actively applying to the Ministry of Commerce and the Bureau of Industry and Commerce. Accelerate or streamline processes.

Although Tesla has not yet officially sold in China, it has caused controversy in the industry. Praisers believe that Tesla’s success has given the electric car industry even greater hope to provide a new electric vehicle development model that may overturn the traditional automotive industry in the future; critics believe that the Tesla model is not suitable for China. The actual situation of the market, the development of electric vehicles in China can not fully reproduce Tesla. Shen Qi is not very worried about the development of Tesla China because Tesla has its own complete solution and does not entirely rely on infrastructure such as charging stations.

Tesla products can provide ordinary civilian electric charging, access to the United States regulations 120V household electricity can be, charging efficiency is about 50 kilometers per hour for charging. In addition, Tesla offers an efficient charging solution that can be retrofitted in the owner’s garage, doubling the charging voltage and charging efficiency. Tesla also offers a 90-second battery replacement service.

However, in China, the relative backwardness of infrastructure construction is an indisputable fact. "Infrastructure is not a big problem for Tesla. However, if it is not solved for a long time, it will definitely affect the enthusiasm of customers to buy electric cars," Shen Qi said.

Although Tesla’s Beijing store is not opened, it does not affect people’s concern for Tesla. As early as March of this year, Tesla's share price rose sharply and realized its profit for the first time in the first quarter, which was the concern of relevant people in China. Tesla was the first to focus on domestic IT bigwigs and investors concerned about US stocks.

In the past year, Tesla’s share price has been rising, rising from 25 to more than 120 US dollars, more than quadrupled. Most analysts and investors still recommend Tesla, even if this company has never generated a net profit because of its huge investment.

The young electric vehicle company with a history of only 10 years, whether it is in the capital, technical personnel, other resources or industry experience is not as large as General Motors, Nissan and Ford, but this does not affect its stable electric vehicle The first spot. In May 2013, the Tesla Model S also became the best-selling electric car, although it was priced twice as much as its competitors, up to $70,000.

"It's like an iPad that can be driven." Shen Qi said, Tesla removed a large number of physical buttons in the car, replaced by a touch screen, simple design. There is no physical button on the Tesla vehicle except for one emergency light and one copilot drawer button.

Tesla turned the car into a luxury, changing the embarrassing situation that electric cars have always been known. ROADSTER is Tesla's first product. The owners of the 100 limited edition ROADSTER included big-time political and commercial performers such as Schwarzenegger and George Clooney. This virtually made Tesla a free ad. The subsequent MODEL S series helped Tras achieve profitability in the first quarter of this year. "Next year, Tesla will produce luxury SUVs and lower-priced products to enter the ordinary car market." Shen Qi introduced.