Yesterday, Tesla (TSLA) gained 1.8% after Bloomberg honed in on orders for the cars in Hong Kong. Making inroads into mainland China may be more difficult, however.
REUTERS Reuters has reports on Tesla’s may not be able to use its name in China:
The maker of the best-selling U.S. electric car, the premium Model S sedan with a price tag of $70,000, had originally hoped to launch a flagship showroom in Beijing at the start of the year, according to three sources, but has had to put that idea on hold due in part to the trademark issue.
As a result, the 10-year-old company’s first shop-front in China, at the Parkview Green Fangcaodi mall in the capital, sits boarded up. While there is no Tesla sign, the shop is adorned with billboards of the Model S, which was launched in the United States last year.
Tesla also has yet to complete the registration process necessary to sell its cars in China, though Reuters say it’s almost there.
As Stifel’s James Albertine and Lucy Webster noted yesterday, Tesla’s future success depends, in part, on its ability to make cheaper cars and tap the global market.
Shares of Tesla have gained 1.7% to $159.75, General Motors (GM) has gained 0.2% to $35.07 and Ford Motor (F) has traded up 0.3% to $16.46.
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