Tesla Motors CEO Meets With Petroleum Refiner Sinopec to Discuss China’s Charging Infrastructure

MAY 8 2014 BY ERIC LOVEDAY 14

Tesla Model S Design Studio In China

Tesla Model S Design Studio In China

Last month, Tesla Motors CEO Elon Musk was reportedly in China trying to establish a relationship with China Petroleum & Chemical Corporation (aka Sinopec).

Why in the world would Musk be teaming with a petroleum refiner?  Well, Tesla Motors needs to assist in building out China’s charging infrastructure so that sales of the Model S flourish in China.  Without the public infrastructure, the Model S may be a flop there.

So, Musk was there to reportedly ink some sort of deal with Sinopec to “build charging facilities in its gas stations in Beijing at first, and then spread them to the surrounding areas of the port city of Tianjin and Hebei province,” according to Chinese language site 163.com.

Musk was in China to “personally” kick off sales of the Model S too, but we suspect the meeting with Sinopec was the primary focus.

Source: MarketWatch

Categories: Charging, Tesla

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14 Comments on "Tesla Motors CEO Meets With Petroleum Refiner Sinopec to Discuss China’s Charging Infrastructure"

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Interesting, and well played…

Sinopec is a state owned oil company that also operates gas station in China.

The only reason that Sinopec would even considering the charging station is to sell the idea to their gas station service sides that having a Model S coming to the station would increase the “rich prestige” image of the Sinopec stations.

In China, image and prestige are everything in the public…

Dr. Kenneth Noisewater

Well, presumably they also have a higher profit margin from selling convenience-store goods like chips, soda, snacks, cigs, etc. than selling fuel. So, they can earn rent from Tesla for the spaces and get access to their customers, which would buy their highest-margin products.

Who knows, they could open cafeterias or other boutiques if they don’t already have them and earn even more profits if folks have to hang around 30m or so for a charge.

That’s probably true, but don’t they also chips and pop like gas here in the U.S. No clue, but more people utilizing your facilities would accentuate sales.

That’s what I was thinking. Gas stations make their $ off the $2 candy bar you bought, not the gas they sold you.

If I were an independent gas station owner, I think it would be great to host a Tesla supercharger. Gas stations make most of their PROFITS selling food & drinks, not gasoline. And the Tesla drivers will buy food & drinks

And they are already at desirable locations for drivers…

Doh.. echo.

If I’m not mistaken, the Sinopec stations are one of the few (if only) stops along toll roads you can visit without getting off. So Tesla must get the support of Sinopec if they want to build practical stations. I think it’s similar in Japan.

For China there is not the same conflict that there is in the States between petrochemical industries and other power sources.
This is because China’s indigenous oil sources are very limited, and so they don’t have the same vested interest in oil.
There is no reason Sinopec should not be perfectly happy to sell electricity, which can be produced from indigenous sources, instead of imported oil at their stations.

Kind of walking with the devil. I don’t understand why he is so much against selling through dealers but on the other end sees no problem discussing with oilies. A kind of puzzle indeed. I rather see him opening superchargers like in the US and Europe, in a totally independent way. That is much better.

Beside, isn’t the objective of a Tesla not to have to endure that stinking oil smell anymore, so way impose it back on people by placing the superchargers in…a gasoline station? Total non-sense.

I think you’re missing the point. Read the comments closely above and they will address your concerns.

Having been to China several times, this plan makes sense to me.

Yes, and Tesla will probably end up doing more things in China that seem to conflict with the core of it’s mission, to replace the ice. My take is in China it’s their way or the highway.