Tesla To Localize Production in China

Tesla in chinese market

Tesla is aiming to move production to the Chinese market in three years time, CEO Elon Musk broke the news to Xinhua. Elon Musk is looking for a long term commitment in China. Musk said, “We have a strong long-term commitment to China, and we tend to establish both local production and local engineering in China,” he further added, “in three years”.

Until Tesla Motors is able to set up its production facility in the Chinese market, it will keep shipping its models to China from the US. And the locally produced vehicles will be offered to customers once the Tesla factory in China  reaches full capacity. Elon Musk aims to localize production not only in the Chinese market but to other parts of the world too like the European market, saying, “just the sensible logical thing” to “localize production in China for the Chinese market, in Europe for the European market,”

Tesla started taking orders from the Chinese market back in the mid of 2013 for its Model S Sedan. And the first cars were delivered to the Chinese consumers back in April 2014. The start there has been slow as the company initially produced more cars than were in demand. Elon Musk also shared the fact that Chinese market was the only place for Tesla with excess inventory. Chinese customers according to him are a bit worried about the charging system which is why Tesla has increased its number of super-charging stations network in China. Customers there can now get their vehicles charged fast with the mobile adaptors, which allow them to charge their vehicles anywhere.

Tesla is working on improving the built-in maps and navigation via software upgrade, expected to roll out this week. This new upgrade will help enable traffic-based routing. And Elon Musk’s future outlook for Chinese market is positive as he shared improved sales figures for the company during the last three months. Tesla is working to improve the confidence of the customers in the Chinese market. He views this market from a long term growth perspective, steadily boosting confidence of Chinese consumers. And when asked about the possible impact of China’s economic slowdown on Tesla, he remained positive about company’s outlook in that market for the short as well as the long term.

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