Tesla (TSLA) May be Mulling Move Into China
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Tesla Motors (Nasdaq: TSLA) is moving quick to get more international exposure.
According to a report in the GlobalTimes, Tesla may open its first China sales outlet in Beijing.
Sources cited by the GlobalTimes cautioned the news, saying Tesla would face "considerable risks and uncertainties."
One manager for Beijing Topduty Management Co said China's electric vehicle market is "far from taking off" amid a recent push of subsidies to spur EV sales. Lack of charging facilities and pricing are two other key factors going against Tesla right now.
Tesla said it plans to build a vehicle with an MSRP of $40,000 by 2016, with its current Model S sedan starting at $62,400. Chinese tariffs should drive those prices even higher, making only the wealthy able to afford the vehicle.
A counter argument could be made that the likes of Ferrari, Porsche, BMW, and Lamborghini, among others, sell thousands of vehicles in the country each year, though those all run on traditional gasoline, which is readily available.
Tesla shares are up 1.4 percent Thursday.
According to a report in the GlobalTimes, Tesla may open its first China sales outlet in Beijing.
Sources cited by the GlobalTimes cautioned the news, saying Tesla would face "considerable risks and uncertainties."
One manager for Beijing Topduty Management Co said China's electric vehicle market is "far from taking off" amid a recent push of subsidies to spur EV sales. Lack of charging facilities and pricing are two other key factors going against Tesla right now.
Tesla said it plans to build a vehicle with an MSRP of $40,000 by 2016, with its current Model S sedan starting at $62,400. Chinese tariffs should drive those prices even higher, making only the wealthy able to afford the vehicle.
A counter argument could be made that the likes of Ferrari, Porsche, BMW, and Lamborghini, among others, sell thousands of vehicles in the country each year, though those all run on traditional gasoline, which is readily available.
Tesla shares are up 1.4 percent Thursday.
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