Despite Adversity, Tesla Notes Significant Growth In China

2 months ago by Steven Loveday 28

China is the largest automotive market in the world and surely has the potential to become a global leader in EVs. Tesla’s quick success in the country is proof.

As we’ve reported on numerous occasions, the Chinese are enamored with Tesla. Though the Silicon Valley automaker faced difficult times when it first entered the Chinese market back in 2014, forward progress has been imminent. Tesla recently released the above video showing owners in China and their love for the brand.

Tesla

Model S in China

China is dealing with a population that is out of control and substantial air pollution that is causing a visible and problematic smog concern. The country is moving forward with more stringent ZEV mandates which are estimated to lead China to rapid EV growth over the next couple of years. China may go so far as to ban gas and diesel vehicles in the near future.

Tesla vehicles are subject to a 25 percent import tariff in China and don’t qualify for all of the country’s EV incentives. Despite this reality, the automaker tripled its sales in 2016 (more than 11,000 deliveries and $1 billion in sales). The company is on the fast track to do the same or better in 2017 due to a record first and second quarter.

CEO Elon Musk has talked in the past about the necessity to establish a manufacturing base in China. At this point, that has yet to happen, as the automaker has been solely focused on building charging infrastructure and delivering vehicles. However, a plan is in the works and nearly ready to roll.

Video Description via Tesla on YouTube:

At Tesla, our mission is to accelerate the world’s transition to sustainable energy. As we continue toward global expansion, discover how our electric vehicles have impacted the lifestyle of local Tesla owners across China—from Tibet to Beijing and Shanghai. With the freedom of long distance travel, convenience of Autopilot, and unparalleled performance, Tesla provides a meaningful and environmentally-responsible way to travel in the city and beyond.

Source: Electrek

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28 responses to "Despite Adversity, Tesla Notes Significant Growth In China"

  1. SuspectingPump says:

    I can only believe that this article is printed today after five or six days of the stock price falling pretty badly.

    1. Pushmi-Pullyu says:

      Tesla’s stock price is highly volatile. It hit an all-time high as recently as a week and a half ago: Monday, Sep. 18. It’s hardly a surprise that it has fallen since.

      If InsideEVs ran an article about Tesla’s finances or its stock every time the price fell for 5 or 6 days in a row, then this would look like a stock investor site rather than a site for those interested in EVs.

      There are plenty of investor-related articles to be found on Tesla at websites like Motley Fool, The Street, and the Wall Street Journal. We don’t need those here. In fact, I think there are far too many articles at InsideEVs focusing on Tesla’s finances and/or stock as it is. There certainly seem to be far more anti-Tesla and anti-EV FUDsters attracted to post comments at this site than there ought to be!

      This is supposed to be a site about electric vehicles, not a site for investor-oriented financial analysis, nor for those trying to manipulate Tesla’s stock price by posting either Tesla cheerleader or Tesla hater comments.

      1. Four Electrics says:

        Weren’t you gloating about Tesla’s recent high just a few days ago?

    2. Four Electrics says:

      I would be surprised if the authors who regularly post here were *not* long Tesla stock. If so, they should disclose their holdings with every article.

      For the record, I have neither held nor sold shares of any automotive or energy company.

      1. David Cary says:

        Just a fun dig.

        By your relative wealth and age – all based on your car choices, your lack of investment is a big problem. Automotive and energy companies together make up a rather significant segment of the US economy.

        Now I think you could rephrase your statement to reflect reality.

        My statement:
        I have owned TSLA but do not currently. I own mutual funds that are invested in Auto and Energy. I will try to remember to add to my posts when I own TSLA but I can’t keep track of whether my mutual funds own TSLA or not. My father has owned TSLA but I don’t think he does now. He bought VW after the immediate beating after the diesel scandal – I don’t know if he still owns.

      2. ROFLOL says:

        Of course you also never spoke a word of truth on this forum…

        ROFLOL!

  2. Tom says:

    ***mod edit (staff)***
    Site is indeed under some stress today/past 24 hours, attempting to get it running up to speed/properly again.
    Thanks for your patience with us.
    ***mod edit***

    1. (⌐■_■) Trollnonymous says:

      +100000

      Site runs slower than me after taking a few too many Vicodins, it’s constipated.

      Then I get the message “a script is causing your browser to run slow…..blah blah.”

      It’s the only browser open and the only site I’m on at the moment.

      1. Jay Cole says:

        We are working at converting to a secured/HTTPS tag for the site at the moment (all websites will soon be flagged as unsecure by google without it).

        …and while we have got the HTTPS cert now in place (huZZah), its playing some havoc with the load times/not allowing external images and widgets, slowing everything down big time.

        Hopefully we can get it sorted out relatively quickly.

        1. Pushmi-Pullyu says:

          Thanks for explaining, Jay.

          I was afraid my outdated Win XP operating system was finally so obsolete that InsideEVs was “broken” for my Firefox browser.

          1. CCIE says:

            Oh man, MS isn’t releasing security patches for Win XP anymore. You’re living dangerous.

            1. Jay Cole says:

              Random update: I “think” we have gotten all HTTPS work done, and are now trouble shooting some maintenance issues…but site should be a lot better than yesterday (analytics is showing it about 3X as responsive), still working to improve it further.

              1. Spoonman. says:

                I was getting articles without CSS for a while but that seems to have been fixed. Pretty good for free…

  3. Assaf says:

    Small correction:
    China does not have “the potential to become a global leader in EVs”.

    It is ALREADY a global leader on EVs.
    – Without China there wouldn’t be an electric bus industry to speak of. China makes ~99% of the world’s electric buses, and deploys nearly all of them domestically.
    – China leads the world in automotive Li-ion battery production volume
    – China is far and away the world leader on EV sales by volume, having overtaken the US in 2015 and never looked back.
    – The vast majority of China auto sales are domestically produced.
    – China is the only place where you can find a near-complete range of EVs to choose from, at various market segments, ranges, and designs.

    It’s not a coincidence that China took the #1 spot in the annual Top EV Countries list for 2015 and 2016.
    https://insideevs.com/top-10-countries-in-the-global-ev-revolution-2016-edition/

    1. (⌐■_■) Trollnonymous says:

      “The vast majority of China auto sales are domestically produced.”

      When China requires you to manufacture/produce there then yeah, the majority is produced there.

      The US should impose the same thing for higher ticket chinese products also.

      1. Mikael says:

        There are no such requirements. Then for example Tesla would not be able to sell a single vehicle in China.

        If you’re going to troll then you can at least try to troll properly.

        1. Pushmi-Pullyu says:

          Are you a Communist? If not, then why the pro-China bias in your comment?

          It’s only a slight exaggeration to say that China requires auto makers to make cars there in order to sell them there. China certainly does use strong-arm tactics to coerce foreign (to China) companies into becoming junior partners with Chinese manufacturers, and to divulge their trade secrets to their Chinese partners (if “partners” is the right word when the arrangement is forced). For those foreign companies which don’t, companies such as Tesla, the high Chinese import tariffs and red tape/regulations make it difficult and expensive to compete there.

          And it’s even worse for S. Korean auto makers Kia and Hyundai. I guess you didn’t read that news, either.

          Carmaker Hyundai has become the latest Asian multinational to fall prey to China’s government-orchestrated boycott of South Korean goods in retaliation for the planned installation of a US missile defence system on its soil.

          Full article: http://www.scmp.com/business/companies/article/2085118/south-koreas-hyundai-kia-sales-halve-china-amid-diplomatic-spat

          1. Mystery says:

            I see you are wising up some, but still your anti-China bias totally conflicts with your TSLA pushing. Inside EVs reports a Global EV sales scoreboard :
            CHINA – 65 (%)
            Non-US Intl – ~ 13 (%)
            That’s an avalanche, so You Have to Play by the Home Team’s Rules. Period. If you don’t like them, wait for Elon’s private co-pilot to Mars. No one said life was fair or that everyone is born nor should be equal.
            The only people who can have a Minutia Chance of stopping NKorea nukes is China, so that’s the Poker hand the US and Tesla have to deal with, or else get kicked out like Google and Facebook, the latest beacons of morality (not), given the past year’s election Russia nonsense.
            Also, 11K Tesla sold in China in all of 2016, is an overall joke of market share so TSLA is Not succeeding in China at all, and these numbers strongly indicate there must be fuzzy math going on for non-US (assumed Intl but never documented by TSLA) remainder of quarterly sales. Will see a Huge Q3 miss, or the most concocted smokescreen numbers ever

            1. David Cary says:

              What is with all the name calling etc?

              China does not ban foreign auto manufacturers – true. Do they put up unreasonable burdens? absolutely. I think this is something any reasonable person can agree on. Splitting hairs for the sake of an argument is a bit immature.

              11,000 cars by Tesla maybe a small market share but is a big increase. No one (not even Elon) expects even a 1% market share in China with a $100k car and 25% import tariff. To say that they don’t have significant market share is waving your hands at absolutely nothing. And saying that number means there is fuzzy math going on doesn’t make any logical sense.

              The poker hand from my vantage point is the stroke of a pen trade war with China that will hurt both economies. I am fairly confident who will win that war but who knows. I know if I was a CEO with a supply line from China, I would be divesting as quickly as possible. The current environment is not promising for long term growth in China for manufacturing. They will realize that soon and N Korea will fade away – after millions die unfortunately.

              1. Mystery says:

                Agree with some of your points. Millions dying is gonna happen unless somebody ever actually talks to the Rocket Man. Pretty sure not even Putin or Xi or Moon or Anyone has ever even MET with the guy, So how is this gonna go down. Badly, grab yr radiation pills and masks.
                But 11k sold in China AND years of Flailing since 2013 (personnel turnover etc) is Reality. Q2numbers of 22k worldwide Just Do Not add up if only 10K US (per insideEVs), poor TSLA China mkt share,and “China 65% vs non-US rest of world 13% EV market share”.(period)

              2. Mystery says:

                Also, as for manufacturing moving away from China, that ship has Already Sailed thanks to the green tree-hugger Obama. The US with current DJT doesn’t even support the home team TSLA much anymore (only the smart people in CA know best). That’s the reality, so TSLA needs to make sure Model 3 waiting list = 0 in CA doesn’t happen early (mid 2018) like it did with the brainless Model X (doors ripped off)

  4. Glenn says:

    China has made a decision to shift to EV’s both for domestic pollution issues and to develope their automobile industry to take the lead in world vehicle sales. Here in the US we have no such directive now.

    Given all the hurdles that American manufacturers have in China, China has by absolute size, has a large number of folks who have substantial amounts of money. So the more expensive a Tesla is, the more desirable. It doesn’t hurt that it has auto pilot and bio defense air filters and seats a full Chinese family.

    1. Mystery says:

      FYI, full Chinese family == 3 (due to govt policy until recently). You must be talking abt lower-income US border crosser Dreamers (but now the chief tweeter DJT is in charge), or maybe India but they aren’t the 6-figure TSLA target price mkt

      1. Glenn says:

        A full Chinese family is an extended family for those w money (and those without) including grandparents and can include the parents’s other siblings. Chinese families often are defacto economic units often inter-invested in business, housing and vehicles.

        1. Mystery says:

          FYI Absolutely Next of None of the type of China moguls you are describing ever Drives in China. They all have personal drivers – chauffeurs. Driving is Not Fun in China. It’s just a status symbol.
          Is all of this being dreamt up by you in Wayne’s World reality?

          1. Glenn says:

            I happen to be Chinese and was last in China 5 months ago.

            1. Mystery says:

              Ok, that’s one good positive chip for you. Your initial point makes sense, but just as Apple share is dropping fast, Tesla market share is very poor and not what was intended in late 2012. As I think you allude to, China will always be a Home Team market, but I agree they, NOT the US esp under DJT, are ALREADY leading the world, obviously with 65% of entire EV market, so all the hype-mongering abt TSLA this and that in USA means hardly anything Without Success in China (which is Definitely NOT happening now, wirh proven poor market share). No Matter how much grandiose vagueness in this article without any numerical facts other than 11K Tesla sales in China in ALL of 2016, which proves Exactly the Opposite.

  5. Mystery says:

    It would help if Tesla and Elon Musk bowed their hubris-laden heads properly in order to succeed in China. When the first Autopilot-related death occured in China (not the Brown death in Florida) when the Model S slammed full speed into a side highway barrier, Tesla didn’t say one word and, per usual procedure, deny and deflect, smoke-and-mirrors. As you posters know, China doesn’t forget, see S.Korea goods boycott (which is absolutely NO different than what your DJT is doing here with NFL Mexico wall etc). So wake up and learn how the real world works, Not Candyland liberal Obama donating billions to Iran as they laugh maniacally.

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