Tesla hopes to find electric car demand in China The Denver Post

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Tesla hopes to find car demand in China

San Jose News reporter Dana drives a Tesla Model S past Lake Merritt in Calif. on Thursday, April 11, Tesla Motors loaned the car to for a few days to test-drive. (Jane Jose Mercury News)

Motors all-electric Model S has been well received in the States, and deliveries have begun in Europe.

Now Tesla is ready to take on the world’s auto market: China, CEO Elon Musk has described as a card in the company’s future.

is in a quiet period as executives for the company’s Aug. 7 earnings and a company representative declined to for this story, saying that Tesla is likely to more news on its China next month. But tidbits Tesla’s plans have out in the Chinese media and from experts in Asia.

Its first showroom in mainland scheduled to open later year, will be in central at the exclusive Parkview Green a gleaming, pyramid-shaped plaza with sky-gardens and atria It is the first mixed-use commercial in China to be certified LEED for its energy-efficient design, and Tesla’s showroom will be roughly times larger than its showrooms.

Auto industry say Chinese consumers’ growing for luxury automobiles makes it a market for Tesla to tackle. 19 million vehicles were in China last year. brands like Audi, Mercedes-Benz and Porsche are increasingly and analysts say that Tesla is to market the Model S as a luxury that happens to be an electric

China is the biggest auto in the world, and that’s why Elon is really pushing for sales in said Mike Omotoso, manager of global powertrain at LMC Automotive in Troy, Mich. The is being built in Beijing’s of Rodeo Drive. The Model S may be a way for the Chinese to say ‘I’m wealthy, but environmentally responsible.’


Air pollution is a problem in China, and the government is a supporter of electric vehicles, of domestic automakers like BYD and And a December report by McKinsey found that spending by consumers on luxury products, jewelry to clothing and cars, now that of any other country, Japan.

Tesla will sell in China because it is a very quality and well engineered a luxury brand and it is foreign said Charlie Paglee, CEO of Auto Engineering in Shanghai who has in China for more than two

Chinese customers will buy the to show off their wealth and their love of the environment. will be successful in China they have already a status symbol in the USA and that will translate to China, to the prestige of owning an iPhone.

this spring, an analyst Musk what geographic for the Model S was looking like that roughly one in four for the vehicle are from outside the States.

I think we will see probably at 10,000 units a year demand in Europe, and then at 5,000 in Asia, said during the May 8 earnings call. But I that could be, obviously, a bigger number and China is of a wild card here.

Not is bullish about Tesla’s in China. The EV market there is in its and the lack of charging infrastructure is an The Chinese government does not offer any incentives for imported vehicles; Tesla’s Model S is to be subject to import and luxury that could double the already steep price.

worry about Tesla’s property being stolen.

risk, said Theodore of Litchfield Hills Research. I see the China market as having any impact for Tesla’s numbers the next 18-24 months. far more concerned that the will take a Model S, it apart and knock it off.

Tesla currently has a service in Hong Kong that owners of its discontinued all-electric and handles Model S reservations.

Kong and China are actually different markets. Hong is an extremely wealthy island with very short which is ideal for the introduction of vehicles like Tesla, Christopher Foss, senior at Dunne Company in Hong Mainland China is a huge with massive cities by urban sprawl, constant jams, and long commutes.

But by China will account for of all luxury vehicles sold So there is certainly strong potential for Tesla in the Middle if conditions to provide enough stations for the vehicles can be met.

Kingston Chang, who worked at China for a decade, joined in March as its general manager for

Mr. Chang will help navigate its entrance into the market, said analyst James of Dougherty Company in a research note. Global is robust.

Contact Dana at 408-920-2706. Follow her at Twitter.com/danahull.

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