Tesla’s flagship Model S outsold all other sedans in Hong Kong in 2015 with a total of 2,221.
At a press conference held in Kai Tak Cruise Terminal yesterday, Tesla CEO Elon Musk described Hong Kong as a “beacon city” for electric vehicles, with its Model S accounting for 70% of all electric vehicles sold in the city. Tesla Hong Kong recorded a stunning 270% growth of new vehicles registered from 2014 to 2015.
In comparison to the encouraging performance in Hong Kong, growth in China is slow. To date, Tesla Motors has 15 stores in China, with more than 340 superchargers and 1,600 destination chargers. There are 45 superchargers and 75 destination chargers in Hong Kong alone, making it the highest density of Tesla superchargers in the world.
Musk said Tesla was facing certain challenges in China, such as high import duties and taxes and the company was still on the lookout for manufacturing partners.
The remarkable growth rate in Hong Kong however is a shot in the arm for Tesla Motors business; but selling well doesn’t necessarily mean making a bigger profit.
Reuters’ analysis shows that Tesla is losing more than US$4,000 per Model S, burning some US$359 million cash in Q2 2015. Together with the plunge in petrol prices globally, which is likely to drag down consumer demand for electric vehicles, the future of the electric car maker remains uncertain.
Tesla’s Model 3 sedan, the company’s first mass-market model, is expected to launch late next year. Musk added that Asia will be its biggest market to expand down the road.