Sometimes the word ‘huge’ fails to capture Tesla Motors Inc (NASDAQ:TSLA)‘s CEO, Elon Musk’s ambitions. In the case of luxury electric car manufacturer’s expansion plans in China, the word, ‘huge’, has the same problem. A significant hurdle in these plans, the charging stations, is on its way to be resolved at breakneck speed as reported in an article on Want China Times.
The article reported a 50% increase in Tesla Motors Inc (NASDAQ:TSLA)’s destination charging systems in China as a consequence of a deal that the company signed with Minsheng Bank. Earlier, Tesla had more than 400 destination charging stations in 61 cities in China. Now this number will swell up given that 200 more of these stations are to be installed according to the deal signed with the bank.
Elon Musk has been reported to have said that Tesla Motors Inc (NASDAQ:TSLA)’s largest customer in future is most likely going to be China. What makes China, such a large potential market is apart from its substantially larger upper middle class, which can afford luxury cars, China also has a humongous air pollution problem, which Tesla Motors Inc (NASDAQ:TSLA)’s electric cars can fix.
Chinese government is determined to solve this problem and has offered tax incentives to citizens driving electric cars. Considering these circumstances, Tesla Motors Inc (NASDAQ:TSLA) is reported to have set a target of selling 2,000 cars a week or 100,000 a year by 2015.
These numbers require charging stations and Tesla Motors Inc (NASDAQ:TSLA)’s latest deal is shows that the company is on its way to resolve that issue.
China could prove to be a even a bigger market than the company initially thought it would. After all it is the world’s biggest Automobile market, and according to Statista, 14.16 million passenger cars have already been sold in 2014.
China’s forecasted GDP growth of around 7.5% also underpins this demand. Hence, Tesla Motors Inc (NASDAQ:TSLA)’s partnership with the country’s institutions to build new charging stations is like a perfect glove for a hand.
According to Want China Times, Tesla has also partnered with Model S owners to set up charging stations.
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