Tesla Motors Inc. To Pave Its Way To Hong Kong

Tesla will soon disrupt the Hong Kong market.

Tesla Motors Inc. is taking the Chinese market quite seriously. The company is now exploring options to initiate a joint venture for local production in the largest automotive industry across the globe. Mr. Elon Musk, the chief executive officer at the company considers Hong Kong to bed a potential electric car market.

Mr. Musk has joined forces with the Hong Kong Technology Forum recently where he discussed his plans for the automotive industry in the region. He expressed that the company wishes to become the electric car giant when it is about autonomous driven vehicles along with alternative fuel cars.

The automotive giants considers the chances of coming up with a Tesla truck along with a substantial number of autonomous cars in a time span of 15 years. As per Bloomberg, Mr. Musk stated that to have a conventional car that makes use of traditional methods is similar to “owning a horse. You do it for sentimental reasons, not transport.” The electric car giant has several competitors in the automotive space which includes Alphabet Inc.- parent company of Google, Chinese search engine giant Baidu Inc., General Motors Company- a Detroit based automaker along with Ford Motors Co.

When it comes to China particularly, TSLA has actually started to show some progress. The company had a relatively harsh start when it entered the market back in FY14. The automotive giant had to undergo a crucial management change in China where they had to fire the sales staff along with coming up with a sound infrastructure for EV charging related facilities.

During the third trimester which ended in September, the company recorded quarterly sales of 1,345 units where a consolidated 3,025 units were sold in the first 9 months of FY15. The sales for the previous quarter are likely to be promising. All this seems to be a mere speculation and will only gain weightage when the company reveals its quarterly earnings in the coming month.

We need to take several factors into consideration; the company is all set to initiate local production. The idea to come up with a joint venture will minimize the tariffs involved in import by 25% instead of 50% that is implied on international automaker. As per Engadget, the company will inaugurate its factory by the mid of FY15. As per the local media in China, the company is likely to collaborate with Lifan Group and Chang’an automobile Group which are renowned automotive companies in China.

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