Owing to weakening sales, Tesla Motors has plans of resorting to job cutting measures in China. This U.S. based electric cars manufacturer has not disclosed any aspect with respect to the jobs that it will be cutting. The main rationale behind such a step is to develop a more productive and a strong team, and as a result of that a few handful of employees will have to leave. This was expressed on Monday, by a spokesman for Tesla.
As per senior officials, this restructuring step also shows the degree of commitment that Tesla has towards China. Despite several losses, the company has been trying hard enough to sustain itself in the China market, thereby constantly striving towards dramatic and significant growth. The company’s losses during the 4th quarter reached a whopping US$108 million since the total number of car deliveries had come down drastically against expectations. China’s performance has been rather sluggish and disappointing. According to JL Warren Capital, an investment research company, last year when Tesla was engaged in the delivery of cars to its Chinese clients, the total number of Teslas that were registered over the previous nine months had reached below 2500.
Recent data also throws light on the fact that 2015, for Tesla has been rather challenging and tough from the business point of view. Also, according to the research company, in January Tesla had imported a total of ten Model S cars into the China market. This was an alarming figure when at a time, close to 440 cars would be imported. Several business officials at Tesla refused to comment however, they did maintain that Tesla had confidence in its business status in China.