Tesla Motors CEO Elon Musk (Photo : REUTERS/Rebecca Cook)
Tesla CEO Elon Musk announced during the Automotive News World Congress on Jan. 13, Tuesday that EV sales in China declined during 2014's last quarter but assured that the electric car maker will profit by 2020.
Musk told Reuters that it will finally launch its Model X sport utility vehicle, which is crucial in Tesla's plan to reach an annual sale of 500,000 units by 2020.
Share prices for the Palo Alto-based company fell by around 8 percent in the Nasdaq after-hours trading, declining as low as $188.
According to Business Week, Tesla share's increased by 48 percent in 2014, but sharply declined by 8.2 percent after the close on Jan. 12, Monday.
Musk, who appeared first time in the ANWC, told Business Week that Tesla is not after short-term profits, but is investing in a long term plan, which includes new EV models. He also added that the EV-maker will still be profitable even before 2020.
Regarding its weak sales in China, Musk told Business Week in a Monday interview in California that the nation is "small percentage" of their sales.
Tesla sales in North America and Europe make up for the "unexpectedly weak" sales in China.
One possible reason Business Week gave for the China sales is because the nation lacks a charging infrastructure for EVs.
Additionally, General Motors recently unveiled its new Chevrolet Bolt, an electronic vehicle that rivals the Tesla Model S. The Chevy Bolt has a driving range of 200 miles, close enough to the Model S' 265 miles. The former also has a much lower price range of around $30,000, while the latter costs about $80,000.
