• Sunday, October 11, 2015

Tesla gathers steam and pre-orders in China

Staff Reporter 2014-03-06 09:03 (GMT+8)
A Tesla Model S on display at the Consumer Electronics Show in Las Vegas, Jan. 8. (Photo/Xinhua)

A Tesla Model S on display at the Consumer Electronics Show in Las Vegas, Jan. 8. (Photo/Xinhua)

Following the delivery of the first Tesla Model S electric sports car in China on Feb. 25, the company has received sizeable pre-orders, with the latest orders set to be shipped later this year in September, the website of Guangzhou's 21st Century Business Herald reports.

The market value of the US-based Tesla Motors now exceeds US$30 billion and related concept stocks on China's A-share market appeared to have become one of the favorites on the exchange as well.

A securities firm said that the surging production of Tesla cars will stimulate growth of the electric car industry, as well as the supply chain for lithium batteries. Public firms listed on the A-share market that supply batteries, raw materials, lithium ore and BMS battery management systems will also benefit greatly.

A Tesla salesperson said there are two versions of the Model S on sale — the S85 priced at 734,000 yuan (US$119,700) and the P85 at 852,500 yuan (US$139,000).

The salesperson said customers need to place orders before the company commences production. Orders can be placed on Tesla's official website.

Tesla founder and CEO Elon Musk said demand in the European and Asian markets would be the main catalyst for the company's growth, particularly China. Musk has said several times that China is expected to become the second-largest market for the company following the United States.

In addition, Tesla is also promoting its models as a status symbol for the wealthy, which has helped generate buzz for the company despite the not-yet mature technology and incomplete support infrastructure in China, such as insufficient charging points.

"Tesla is labeled as 'elite' and 'environmental friendly,' and rich people have plenty of money to solve problems, such as charging equipment," the expert said.

Who`s who »
Jiang Chaoliang (蔣超良)

Jiang Chaoliang is chairman of Agricultural Bank of China Born: 1957 Birthplace: Qingjian county, Hunan province Country of Citizenship: China Profession: Economist Education: ...