Tesla Motors (NASDAQ:TSLA) has been making inroads into the Chinese economy in the last few years. Not only has the country emerged to become the largest auto market in the world, but it has good appetite for electric vehicles as well. This is primarily why Tesla is so keen on expanding its footprints in this Asian economy. China’s strict emission rules have been suggesting that the market is going to grow in favor of electric cars over the next few years. This is triggering automakers to get into the development of electric vehicles to meet the stringent requirement.
Tesla, known for designing and manufacturing electric cars, is evolving as a tough rival for other automakers in the electric car market. The company sold close to 3,025 Model X and Model S vehicles in the first nine months of 2015 in China. The carmaker generated $319 million in revenue in the country. However, Tesla faces the challenge of being a late entrant into the country with puny market share. While other automakers such as General Motors (NYSE:GM) and Volkswagen (VLKAY) have cemented their dominance in China, Tesla is yet to build its own manufacturing facility in the region. As per a Bloomberg report, Tesla is looking to set up a production unit in Shanghai which is expected to attract an investment of $9 billion. Continue Reading »