As the top one brand of electric vehicles, Tesla is expanding into Chinese market. As mentioned in Louise Zu’s blog, Tesla has a giant potential market in China, but its current sales stuck. I agree with her point.

With the great population, China has the world’s biggest automobile market. According to the analysis, sales of cars in China decreases recently but the sale of electric vehicles becomes better and better. The whole society pays attention to environment. This makes electricity cars an increasing demand. Although there’s great demand in China, Tesla’s sale cannot make so much profit because of limited production. Recently, Tesla has an e-store in China that is cooperated with Alibaba. But it was cut down in a month because the company cannot satisfy the demand. It shows that Tesla needs to improve its production to meet the demand in this newly developing market and make more profit at the same time.

In addition, Tesla will benefit from the waiver of purchase tax on electric vehicles in China. It’s known that Chinese government always sets a high tax on imported goods. However, the waiver this time promotes the importation of electric vehicles. It’s obvious that the government supports electric cars as it helps deal with the environment problems. And to China today, environment attracts more and more attention.

There’s a problem that market in China is just developing without many mature rules and standards. This makes expansion in China a little bit confusing. But I believe that as time passes by, the market will be more organized with all the regulations and standards. In this way, Tesla will be successful  in China and it will make great profit.

Picture from: http://cnnmoneybuzzblog.files.wordpress.com/2014/02/tesla-china-614xa.jpg?w=614&h=387

Work cited:

Einhorn, B. (2014, August 7). Tesla in China: Slow Sales Acceleration and a Brand-Name Dispute. Retrieved November 11, 2014, from http://www.businessweek.com/articles/2014-08-07/tesla-in-china-starting-sales-slowly-winning-brand-name-dispute

Equity, Z. (n.d.). Tesla to Gain from China Tax Waiver. Retrieved November 11, 2014, from http://finance.yahoo.com/news/tesla-gain-china-tax-waiver-205006842.html

Young, A. (2014, August 29). China Electric Vehicle Market: As Tesla Expands Charge Plans, BYD Chief Says Country Mulling Gas Tax. Retrieved November 11, 2014, from http://www.ibtimes.com/china-electric-vehicle-market-tesla-expands-charge-plans-byd-chief-says-country-mulling-1673610