Severely low sales in China has Tesla Motors CEO Elon Musk ready to fire top in-country executives of the luxury electric manufacturer, which reportedly only sold about 120 cars to Chinese customers in January.
“People with knowledge of the matter” told Reuters that Musk sent an email to country managers in late January threatening demotions or firings if they’re “not on a clear path to positive long-term cash flow” soon.
Tesla already lost two top Chinese managers in 2014 when Musk reported fourth-quarter sales as “unexpectedly weak,” according to Business Insider. January’s sales numbers were also reportedly well below company goals.
After the company’s leading Model S went on sale in China last year, Tesla had trouble educating customers about the car and and its network of supercharger stations — misperceptions that have since been cleared up according to comments from Musk during a press conference last month. (RELATED: Tesla Stock Tanks After Musk Press Conference In Detroit)
Tesla will release its 2014 fourth-quarter and full-year earnings reports after markets close Wednesday, when analysts expect to see the company’s total sales units fall below projected goals of 33,000-35,000 due to a production shortfall. The company is still expected to surpass last year’s 22, 500 units with a total figure around 30,000. (VIDEO: Watch Elon Musk Explain Why Hydrogen Is An ‘Incredibly Dumb’ Alternative Fuel)