Why Tesla Motors Chose China? Case Solution

Tesla Motors, Inc.

Tesla Motors is an American company and the core operations of the company are that it designs, manufactures and sells electric cars and vehicle power train components. It is a public limited company and trades on the NASDAQ stock exchange. It is registered under the symbol TSLA. (Premium Electric Vehicles, 2015)

Opportunities in the Chinese market

China is one of the countries that accepts the innovative products, therefore; the people of China will take the vehicles of Tesla Motors aggressively. As soon as the company launched its vehicles in China, within two months it had sold itsproduct. The Gross domestic product of China is higher as compared to other nations, therefore, its shows that the economy of China is one of the greatest economies of the world. $ 9240.27 billion is the Gross Domestic product of China in the year 2013. (Trading economies, 2015)

The product of the company is vehicle that produces no emissions and China is one of the highest populated country as comparedto other countries therefore, it is also an opportunity for the company to move in the Chinese market as more population means more pollution and the solution to reduce this population is that the vehicles of Tesla Motor’s produce no emission. Most of the car purchasers in China aremore concerned about the status, and also they purchase a car to show their wealth.

Why Tesla Motors Chose China Case Solution & Answer

Development in China

The concept of new-energy vehicles (NEV) is widely spread in the market of China. The electric car has the feature of hybrid and fuel cell care is commonly known as the new-electric vehicles (NEV). The State Council of China has recently released a notice for the production and sales of at least 500,000 electric and hybrid vehicles by the year 2015.

It is one of the useful opportunities for Tesla Motor as it got the legal opportunity. Therefore, it is expected that the Chinese market’spurchaseof electric vehicle will changeby 2015. The Chief executive officer of TSLA had given the statement about the Chinesemarket that the company is enthusiastic about the Chinese market and the amount of goodwill that the company encounters on all levels from the government, fromthe people in the car industry and some general consumers. (CEO Elon)

Environment opportunities

The population of China is high,therefore, it had the highest pollution as comparedto other countries. In order to reduce the pollution of China, it is necessary to take such practical steps through which environmental issues can be resolved. The environmental benefits includereduced air pollution and reduced greenhouse gas emission.

Chinese industry

The company can sustain in China because China has several industriesthat can give an additional advantage to the electric vehicle company. The Chinese have several advantages when it comes to stimulating the Electric Vehicle industry development.

 The Chinese are the market leader in battery technology; Car buyers are increasing day by day, and it is observed that the enormous buyers of the electric car are increasing in the Chinese market. The government of China is in the favor of the electric car because the government of China also believes that the Chinese nationals should use electric cars in order to reduce the pollution of the country.

China auto market

The Chinese auto market is the world’s largest auto market of the world, therefore; the company can sell cars in huge volume in the market of China. It is also one of the world’s major car markets of the world.

More opportunities meanslessdisadvantageshowever,the advantages outweigh disadvantages. The company is also considering building the infrastructure of the company, and the company planned to include service centers and the Supercharge network in China. (CEO Elon, 2014)…………………..

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Why Tesla Motors Chose China? Case Solution
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