Cars and Drivers
Customers Can Get New Tesla P85D This Month
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Why wait for the new P85D Tesla super car that sells for as much as $105,670? Tesla Motors Co. (NASDAQ: TSLA) will start to deliver the cars this month. Drivers who want superfast cars will have to sit longer for delivery of General Motors Co.’s (NYSE: GM) 2016 Cadillac CST-V. Tesla could have a problem with low demand because its remarkable glow with the public and investors has started to disappear, or because the P85D is too expensive.
The short line to get a P85D may be an important Tesla problem, but it is not the only one. The company recently announced it would cut workers in China, which is considered among the essential markets for global luxury car sales. The Wall Street Journal reported:
Tesla didn’t provide details on the extent of the cuts, and declined to comment on Chinese media reports that said the company would cut 180 jobs, or 30% of its workforce in the country.
Sales in China for luxury cars, which include Audi, have been essential to their worldwide expansion.
Investors in Tesla shares should worry that its sales problems are not limited to China. Rumors have started that the revolutionary manufacturer has suffered a drop in demand elsewhere. And its shares have dropped 14% this year, after an extraordinary run.
Among the guesses about why Tesla has begun to struggle are low gasoline prices. However, as a cult car with tiny sales, Tesla should not have that problem. Quality is not an issue. Tesla’s cars have topped more than one list of industry quality.
Tesla may have become a victim if its own success. Almost every major global manufacturer has rushed cars to market to try to blunt its lead. While some of these cars have small gas motors, which Tesla does not, the distinction might not be important to buyers of high-end cars with next-generation motors. An example of this is the upcoming launch of the BMW i8 super car, which will retail for $136,500.
Tesla’s role as the leader of the new, green car of the future seems to have disappeared. For the time being, people don’t have to wait in line to get its new flagship.
ALSO READ: Will Air Pollution Kill the Car Market in China?
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