Alibaba Group Holding Ltd (BABA) To Sell Tesla Motors Inc (TSLA)’s Model S Cars In China

Elon Musk thinks that Alibaba Group Holding Ltd (NYSE:BABA) is the best way to quickly expand in China. Tesla Motors Inc (NASDAQ:TSLA) had big hopes in China, with the revised tax exemption for electric vehicles by the government in order to increase the electric vehicles in the country and reduce the pollution. Government had earlier announced that the country would at least have 30 electric vehicles out of 100 by 2016. Elon Musk, CEO of Tesla Motors Inc (NASDAQ:TSLA) has found a way to reach Chinese population easily, Alibaba Group Holding Ltd (NYSE:BABA)’s web portal. Bloomberg’s Betty Liu reported about Musk’s decision to Sell Tesla’s cars through Alibaba Group Holding Ltd (NYSE:BABA) on Bloomberg TV.

Elon Musk

“[…] Starting today, drivers in China can order Tesla’s Model S Electric car through Alibaba’s online shopping mall,” Liu reported.

Tesla Motors Inc (NASDAQ:TSLA) will be selling its Model S vehicles through Alibaba Group Holding Ltd (NYSE:BABA)’s shopping web portal. Tesla is not the first one to use this option in China though. Liu mentioned that General Motors Company (NYSE:GM) and Volkswagen were already selling its vehicles through Alibaba’s online shopping site.

“[…] Musk wants to cut down the time it takes to ramp up sales in China, by selling directly on the web. That way, you don’t have to set up networks and dealerships across the country as he has done here in the US,” Liu said.

Musk’s idea to sell cars through the web makes things easier for the company to expand in China, a country where people would prefer electric vehicles due to the added tax advantages. Tesla has already started selling its vehicles in China from April. Tesla had to fend off a legal suit to use its name to sell the cars in China. As the issue is compromised, the company is gearing up to expand heavily in China. Tesla also has set up free vehicle charging stations across the country in partnerships with local companies.

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