Tesla has shut down its flagship showroom in China as the electric carmaker shifts its retail strategy in the world’s largest automobile market amid local Covid restrictions and slowing sales growth.
The two-story Tesla store, located in Beijing’s upscale downtown shopping centre Parkview Green, was closed in October and relocated to a smaller space in another mall called Raffles City, Reuters reported on Nov. 2. The Parkview Green store was opened in 2013. Mall staff told Reuters Tesla’s lease expired in October and the company decided not to extend it.
Tesla runs more than 200 stores in China. Reuters reported in September that Tesla was considering closing some flashy showrooms in city centers after customer traffic plunged this year due to frequent Covid lockdowns.
Tesla China recently lowered the prices for its Model 3 and Model Y cars by as much as 9 percent, a sign the company is nervous about weakening demand in its second largest market. In the first nine months of 2022, Tesla sold about 320,000 electric cars in China, up 55 percent from last year but lagging the growth of overall electric and hybrid vehicle sales in the country.