California-based car company Tesla failed to sell all its 4,800 units of Model S cars in China since it imported in 2014. Still 2,301 units are left unsold.
The number has already been confirmed by several employees of Tesla and some insiders of the Chinese media.
Another anonymous insider talking to the Chinese media said that the languished Model S cars from Tesla are due to cancelled orders in China. The cancellation orders significantly went up after Tesla unveiled its new P85D, which resulted in most of the customers to drop their order and opted for the new Tesla model instead.
Besides the new Tesla car, another reason could be due to Tesla China’s deposit system. A buyer would need to deposit 15,000 yuan (around $2400) to order the car and another 250,000 yuan (around $40,000) when the ordered vehicle is ready to be delivered to the country. However, Tesla China failed to collect the second deposit, which led to more cancellations.
The reports come after Tesla reportedly laid off about 200 if its employees in China, according to IB Times.
Tesla Motors CEO Elon Musk said in February that the sales team in China misinformed their potential customers.
“This sounds kind of brain dead, but our sales team was telling people that it was difficult to charge in China. Even though this is not true, like that is pretty silly,” said Musk.