Tesla closes retail showroom in China over strategy shift
Tesla drops Model 3 and Model Y car prices in China
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Tesla has closed what was once considered its flagship store in China as the company looks to re-evaluate location convenience for customers, reports said Wednesday.
The electric car company has closed its doors in the upscale location of Beijing's Parkview Green shopping center, anonymous sources told Reuters.
The showroom, reportedly shut down last week, is now covered with paper and advertisements for the next retailer that will set up shop in the two-story space.
Tesla CEO Elon Musk waves during the Tesla China-made Model 3 delivery ceremony in Shanghai in 2020. (STR/AFP via Getty Images / Getty Images)
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China is Tesla’s second-largest market behind the U.S. where it hit a monthly record in September by delivering a reported 83,135 China-made electric vehicles as it looks to improve sales and its customer service strategy.
Tesla did not immediately respond to Fox News Digital’s request for comment but, according to Reuters, the car manufacturer has been considering a revamp of how it conducts business with its customers.
The electric car company is apparently looking to increase its store count in more affordable suburban areas where it can also provide repairs.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 354.27 | +14.63 | +4.31% |
Tesla operates over 200 outlets in China, but despite a move toward closing showrooms, there are currently more than 300 job openings it is reportedly looking to fill.
Tesla Model Y and Model 3 electric vehicles wait to be loaded on board the roll-on-roll-off cargo vessel Theben at Nangang port on May 15, 2022, in Shanghai. (Shen Chunchen/VCG via Getty Images / Getty Images)
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Tesla’s retail strategy is different from other car manufacturers as it not only owns and runs all of is stores – opposed to relying on dealerships – but it also sells cars online.
There has been a massive push amid concerns over climate change and pollution to drive electric, but many drivers across the world are still unable to afford electric vehicles.
Tesla has reduced electric car prices in China on its Model 3 and Model Y cars by as much as 9% – costing Chinese consumers roughly $36,700 for a Model 3 after Chinese subsidies.
The Model Y in China costs roughly $39,700.
Consumers looking to purchase a Model 3 in the U.S. can expect to pay between $40,400 to $56,400, while the Model Y, the SUV version of the electric vehicle, can expect to pay just over $58,200.
A Tesla vehicle drives past the company's primary vehicle factory in Fremont, California, May 11, 2020. (Reuters / Reuters Photos)
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Tesla increased sales in China by 55% from last year and sold 318,151 vehicles in China during the first nine months of 2022, according to Reuters.
The U.S. saw roughly 306,634 Tesla Model 3 and Model Y sales from January through September 2022, according to Clean Technica.