Tesla Motors Inc (NASDAQ:TSLA)’s poor showing in China in terms of car sales is not going well with CEO, Elon Musk, who according to Reuters is threatening of a major shakeup of executives overseas. The shakeup according to CNBC’s, Phil LeBeau, could be down to the giant electric company selling a mere 120 vehicles in January.
Musk had admitted in January that sales in China were unexpectedly weak, well below the company’s aggressive targets, but a sale of 120 cars according to Reuters is something that was never expected.
“Late today Reuters out with a report citing an identified sources and an email from within Tesla Motors Inc (NASDAQ:TSLA) saying that Elon Musk is threatening shakeup of executives handling sales for China in light of January sales. That according to Reuters came in at just 120 vehicles,” said Mr. LeBeau.
Tesla Motors Inc (NASDAQ:TSLA) selling 120 cars in a country that sold 23 million cars last year is a poor showing that justifies any shakeup that the CEO might have in mind as one of the ways of averting a further decline. Focus shifts to the company’s earnings call this week where Wall Street will keenly watch to see the kind of numbers that the electric giant posts especially for China in terms of unit sales.
China remains a key marketplace for Tesla Motors Inc(NASDAQ:TSLA) in its aggressive push for global expansion considering the huge marketplace on offer, but so far results have fallen short. Declining sales in China have already seen a reshuffling of the company’s executive structure seen by the departure of China manager Veronica Wu in mid-December of last year.
The fast money crew on CNBC agree on staying clear of the stock ahead of the earnings as the stock could sink to the lows of $185 a share according to Guy Adami. Steve Grosso, on the other hand, believes the stock could drop and hold on at the $210 mark.
“I don’t think you need to have a position going into tomorrow, whatever happens tomorrow we will let you know what the next $30 to $40 is going to be. My sense is if it trades down to $185 you buy it, a close above $225 tomorrow that’s your stop, you own it there with a tight stop,” said Mr. Adami
Timothy Seymour, on the other hand, maintains a no touch sentiment on Tesla Motors Inc (NASDAQ:TSLA) on the belief that competition, as well as the ongoing problems in China, could provide the biggest headwind going forward.
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