Thursday, October 17, 2013

Chapter 5. Developing a Global Vision

Model S is Norway's best selling car. It is currently being sold in North America, Europe, and soon Asia. European deliveries began last summer in july. Model S is being sold in other countries the same way it is sold in North America through company owned showrooms and dealers, and online. The Model S ranked as the top selling plug-in electric car in North America during the first quarter of 2013 with 4,900 cars sold, ahead of the Chevrolet Volt (4,421) and the Nissan Leaf (3,695). Model S has won several awards and recognitions like the 2013 World Green Car of the Year, 2013 Motor Trend Car of the Year, Automobile Magazine's 2013 Car of the Year, Time Magazine Best 25 Inventions of the Year 2012 award, Consumer Reports' top-scoring car ever, and the National Highway Traffic Safety Administration NHTSA top ranked 5 star safety rating. Tesla's first showroom in mainland China, scheduled to open later this year, will be in central Beijing at the Parkview Green mall. (Beijing's equivalent of Rodeo Drive)

China is the largest auto market in the world so, tesla must be exited on pushing sales there. analysis say china is big on luxury cars so they will market the Model S in China as a luxurious car that happens to be electric. Air pollution is a big problem in China, and the government is a strong supporter of electric vehicles. "Tesla will sell successfully in China because it is a very high quality and well engineered automobile, a luxury brand and it is foreign made," said Charlie Paglee, CEO of Brannan Auto Engineering in Shanghai. "I think we will see probably at least 10,000 units a year from demand in Europe, and then at least 5,000 in Asia," said Musk during the May 8 earnings call.  Tesla also states that,  if demand in Europe and Asia meets projections, the company could sell 40,000 Model S cars annually by next year. Tesla may even change the name of the company within china to Tuosule to avoid a trademark troll. Kingston Chang who worked at Bentley China for a decade will be Chinas general manager for Tesla. "Mr. Chang will help Tesla navigate its entrance into the Asian market," said analyst Andrea James. Tesla has competition globally just like any other car company. For example In Germany the main car company their is Volkswagen and they don't have a EV so it will be hard to have many opportunities in Germany, due to the politically powerful automobile company. Since model S is going global it has a Tesla Club online where owners of the Model S all over the world can post blogs and forums about the car asking questions an informing. in every country their taxes and laws are different so Tesla has different approaches in each region of the world. The Tesla website states, " Tax incentives are complicated and subject to change without notice. While Tesla does its best to keep this information up-to-date, it cannot guarantee the current accuracy. Tesla recommends consulting a tax professional to validate incentive availability and eligibility."







 


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