Tesla Motors Inc (NASDAQ:TSLA) understands that it has a great product for motorists, pure electric cars. However, the company is now concerned about expanding its global market share. Although the company has its eyes cast on several markets including Europe, Tesla is taking particularly special interest in China. Malaysia is also emerging as a key destination for the U.S. carmaker.
According to an article by Want China Times, Tesla Motors Inc (NASDAQ:TSLA) is making deliberate efforts to gain strong market share in China. The Chinese auto market is expected to experience significant growth over the next few years. The company already has a team of executives in the country to push forward its agenda. It also hopes to take advantage of the Chinese love for green technology. That is also the reason Malaysia is on its market radar because the Asian country is also aggressive in implementing green technology.
In China, the government is not only supporting installation of renewable energy sources such as solar panels, but has also devised policies that are favorable for the electric vehicle industry. Tesla Motors Inc (NASDAQ:TSLA) is keen on cutting the cost of its cars to promote big sales in China, especially to compete in the mass market. As such, the company looks to its Gigafactory in Nevada to help it produce more affordable cars.
Experts have pointed out that the cost of batteries can account for almost half of the cost of an electric car, which is why Tesla’s Gigafactory project is a good move. Tesla Motors Inc (NASDAQ:TSLA) has often cited battery constraint as a drag on its production efforts. The company expects to produce 500,000 cars annually by 2024 after the Gigafactory in Nevada kicks into operation.
Infrastructure is also a key concern for Tesla Motors Inc (NASDAQ:TSLA) in the Asia markets that it is targeting with its pure electric cars. Although the company has about 130 mega charging stations in the U.S., it only has 34 of such in China. The company has plans to set up 600 battery charging stations in China.
According to an article on Paultan.org, Tesla Motors Inc (NASDAQ:TSLA) is part of the electric carmakers that are in talks with authorities in Malaysia. They seek favorable market conditions in the country. Malaysia has seen benefits in tweaking taxes and improving infrastructure for hybrid cars. As such, the country hopes to make such improvements and tax adjustments to support the electric car industry, and Tesla will be there to benefit from such changes.