Tesla's resistance to China: trademark holder asking for 30 million dollars

Tesla's goal of achieving official sales in China is only "the Last mile"-the trademark issue. November 6, Tesla (TSLA.NASQ) held a conference call after releasing its third-quarter earnings. In response to analysts ' questions about the Chinese market, CEO Musk said Tesla had been approved by China's regulatory agency to deliver the goods to China as early as January next year, in an bid to start sending electric cars to Chinese customers in February. As for the trademark issue in China, Musk did not mention it. "We have now basically completed the vetting process. If there is still resistance to official sales in China, it is the trademark issue. "A senior executive at Tesla China said to reporters. It can be corroborated that the Tesla Beijing experience shop also on November 2 low-key start trial, open to consumers. Strong demand November 5 night 7 o'clock, Beijing Grass shopping mall's Tesla experience shop. People are still flocking to visit and consult Tesla's electric cars. "Today is the fourth day of trial, the shop visits, consults the person very many, daily average person flow five hundred or six hundred people." A staff member told reporters. For such attractiveness, the staff seemed not very satisfied, "hoping to reach the daily average of the Apple experience store." "Since August 22 to accept the reservation, in the uncertain final price and delivery date, under the premise of a payment of 250,000 yuan deposit, the reservation is still in droves." As of now, models's orders are said to have reached hundreds of. Clearly, in both the Chinese market and foreign markets, this October models has burst two incidents of vehicle accidents and has not affected consumer confidence in the safety of electric vehicles. The latest earnings figures show that Tesla's models pure-electric luxury sports car delivered 5,500 new highs in the third quarter of this year. Combined with 10,500 in the first half of the year, total sales were close to 16,000 in the first three quarters. Total revenue in the third quarter was $431 million trillion, up 760.9% from 50 million US dollars in the same period last year, 6% per cent in the two quarter, and a net profit loss of 38.5 million dollars, a net loss of 111 million dollars over a year earlier, and a gross profit margin of 23.8%. In fact, market demand has not been the most worrying issue for Tesla this year. "We are not constrained by demand, we are constrained by production, and we are working to address production constraints and increase the volume of effective deliveries." Musk says the Tesla management team has spent time addressing the issue of how to improve production speed while ensuring and improving product quality. "There are a lot of such production restrictions to deal with next year." "The quarterly car production rate in Tesla has risen 10% per cent in the third quarter from 500 to 550 vehicles," the results show. Moreover, Tesla signed a 7 billion-dollar battery contract with Panasonic, Japan. According to the contract, Panasonic in the next 4 years to provide the company with 2 billion lithium-ion car batteries, mainly for Tesla's models and not yet put into production SUV sports car ModelX to provide power, which bodes well for the expected surge in sales of Tesla cars. Musk consider, the future will also build a gigabit battery factory. He argues that battery production is the single biggest limitation. Trademark restrictions but in the Chinese market, limited battery. Tesla plans to sell to China in the first quarter of next year and set up a service center, a super charging station infrastructure, and hopes to have a significant increase in sales in China. Although Tesla has basically completed the approval process in China, Tesla will need to be patient with the key "last mile" to address the issue of trademark registration in order to achieve the plan. In August this year, Guangzhou businessman Jimbaosheng released its website of the Tesla brand, which applied for registration 6 years ago, to show ownership of the "Tesla" Chinese trademark and website domain name. September 6, 2006, Jimbaosheng for the first time in personal name "TESLA" trademark registration. June 28, 2009, "TESLA" trademark application for registration successful, Jimbaosheng become legal owner. After the successful registration of "TESLA" trademark in English, Jimbao was born May 18, 2007 and April 2, 2009 respectively to "Tesla" and "Tesla" two trademarks for registration, the current two trademarks in the "Objection review pending" status. To address the issue of trademark registration, Tesla tried to buy the Tesla trademark for 2 million dollars. But Jimbaosheng is charging as much as $30 million trillion, far exceeding its expectations. Negotiations failed, Tesla turned to register the extension of the car Sales (Beijing) Co., Ltd. Beijing Municipal Bureau of Industry and Commerce official website Inquiry Information display: "Tuo-speed Music" Company was established on November 7, 2012, operating range: As the extension of the brand car in China's total distributor, engaged in the extension of the speed of the brand car and its automotive components, spare parts, rubber products (except natural rubber), instrumentation wholesale, Import and Export and commission agents (excluding auctions), the exhibition of speed-brand cars and the provision of automotive technical advice. If the trademark problem cannot be solved, Tesla's activities in China cannot use the name "TESLA". So far, the problem has not been resolved. If Tesla enters China with the name "Speed music", Tesla will not have the trouble of trademark registration. Clearly, Tesla and Musk are reluctant to give up the name "TESLA". Although the trademark registration is blocked, but does not affect the consumer to Tesla's enthusiasm. As night falls, the Tesla experience shop in Beijing's grass-garden mall is still crowded with crowds.