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Tesla Model S Fails To Capitalize In China; Musk Responds, Threatens To Fire Executive

| Feb 12, 2015 10:28 AM EST

Elon Musk

Electric car manufacturer Tesla is experiencing some hard time as the company's sales statistics is failing to hit its goal and as if to rub salt to its wounds the company only manage to sell 120 Tesla Model S cars in China for the whole month of January.

Tesla CEO Elon Musk is now on the verge of sacking its executives in case the company's sales will continue to deteriorate, according to Reuters.

The report added that Musk is already threatening to "fire" or "demote" its managers if they will not show some "clear path to positive long-term cash flow."

Additionally, two of Tesla's top managers in China have already rendered their resignation on 2014, according to Business Insider.

Tesla's sales decline started during the last quarter of 2014 still continues to haunt the company until the early months of 2015.

Musk pointed that the weak sales output in China is due to the reason that Chinese consumers are experiencing difficulty in understanding how the company's electric Tesla Model S works within the country's electric charging network.

During the Detroit Auto Show, Musk told a group of journalists that the misperception had been cleared up.

Tesla along with some car manufacturer considers China as one of the most important market in the world. A successful integration in the Chinese market could prove instrumental to any car manufacturer's success. Tesla began marketing its Model S sedan in the Chinese market on 2014.

Business analysts are keen to know how Musk will respond to the setbacks faced by his company. He is expected to lay down his plans along with the company's fourth quarter report on Wednesday.

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