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Why Tesla Is Cutting Jobs in the World’s Biggest Auto Market

2 minute read

Tesla may be running out of gas in the world’s largest auto market.

The electric car maker confirmed to the Wall Street Journal that it’s cutting jobs in China amid slow sales and sluggish rollouts of electric vehicle infrastructure.

According to research firm JL Warren Capital, less than 2,500 Teslas were registered in China in the last nine months of 2014. 469 of the company’s vehicles were registered in January. Tesla CEO Elon Musk had previously said that selling 5,000 vehicles in China in 2014 would be deemed a success. Tesla declined to comment to the Journal on its sales figures.

One challenge for Tesla in China is the reliance of its electric vehicles on chargers. Because many city residents in China live in apartments, it’s harder for them to keep chargers at home.

Like all automakers, Tesla is eager to establish a strong foothold in China, which became the largest auto market in the world in 2009. More than 21 million cars are expected to be sold in the country this year, an 8% increase from 2014. However, only a tiny fraction of these vehicles use alternative energy sources–in 2014, only 50,000 such cars were sold.

China wants to have 5 million electric cars on the roads by 2020 as a means of reducing rampant pollution problems in the country.

The news of Tesla’s job cuts in China comes after the company actually added more than 4,000 global positions last year.

Check Out the Coolest Cars From the 2015 Detroit Auto Show

Acura introduces the new NSX at the (NAIAS) on January 12, 2015 in Detroit.
Acura introduces the new NSX at the (NAIAS) on January 12, 2015 in Detroit.Scott Olson—Getty Images
Detroit Auto Show 2015
The Mercedes-Benz F 015 Coupe is presented during the media preview at the Cobo Arena on Jan. 12, 2015 in Detroit.Uli Deck—dpa/Corbis
Detroit Hosts Annual North American International Auto Show
Smart shows off their Electric Drive Coupe during the media preview on Jan. 13, 2015 in Detroit.Scott Olson—Getty Images
Chevrolet unveils a new concept car bolt during a press preview on Jan. 12, 2015 in Detroit.
Chevrolet unveils a new concept car bolt during a press preview on Jan. 12, 2015 in Detroit.Bao Dandan—Xinhua Press/Corbis
The Infinity Q60 concept car is displayed during the press preview on Jan. 13, 2015 in Detroit.
The Infinity Q60 concept car is displayed during the press preview on Jan. 13, 2015 in Detroit.Jewel Samad—AFP/Getty Images
Ford Motor Co., Executive Chairman Bill Ford, left, and President and COO Mark Fields stand next to the new Ford GT on Jan. 12, 2015 in Detroit.
Ford Motor Co., Executive Chairman Bill Ford, left, and President and COO Mark Fields stand next to the new Ford GT on Jan. 12, 2015 in Detroit.Carlos Osorio—AP
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Detroit Hosts Annual North American International Auto Show
Toyota shows off their FT-1 concept car during the media preview on Jan. 13, 2015 in Detroit.Scott Olson—Getty Images
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Harkening back to the Sixties, the Touring Carrozzeria explores the idea of an Italian Barchetta merged with a British sports car in the MINI Superleggera Vision. Jan. 12, 2015 in Detroit.Car Culture/Corbis
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Lexus unveils its 2016 GS F during a press preview on Jan. 13, 2015 in Detroit.Bao Dandan—Xinhua Press/Corbis
Scheduled for release in 2016, the Infiniti Q60 Coupe will have a turbocharged 3.0-liter V6 in a stunning aluminum body on Jan. 12, 2015 in Detroit.
Scheduled for release in 2016, the Infiniti Q60 Coupe will have a turbocharged 3.0-liter V6 in a stunning aluminum body on Jan. 12, 2015 in Detroit.Car Culture/Corbis
Acura introduces the new NSX on Jan. 12, 2015 in Detroit.
Acura introduces the new NSX on Jan. 12, 2015 in Detroit.Scott Olson—Getty Images

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