The electric car manufacturer Tesla Motors Inc (NASDAQ:TSLA) has grown significantly in the United States over the last few years, and has already signaled its intention to tap into the potentially huge Chinese electric car market. The exponentially upward trend in the share price of the company over the last eighteen months indicates the success that Tesla has had in shifting units of its flagship Model S vehicle.
Vast network extension plans
It was only recently that Tesla Motors Inc (NASDAQ:TSLA) announced ambitious plans to extend its network of superchargers which is used to power its vehicles all over the globe. Additionally, the company has recently indicated that it will be constructing a gigafactory as it looks to significantly step up production in the coming years. But most observers had assumed that the company’s strategy was focused on its native North American market and the burgeoning East Asian marketplace for the time being, with the former an obvious home base, and the latter needing to address significant pollution problems.
However, in the last 24 hours Tesla has indicated that it has much more ambitious plans than many had imagined. With their customer base growing in the last twelve months in particular, Tesla has announced that it will open will open more than 30 new service centers and stores across the European continent. Tesla made this announcement at the notable and prestigious Geneva Motor Show., and outlined plans to continue rapidly expanding its supercharger network. The move will potentially enable drivers of Tesla’s flagship Model S brand to travel long distances across Europe for free, and can also be seen as an infrastructural preparation for the release of the Model X.
Tesla has expansion potential
Although these ambitious plans may surprise many market analysts, with Tesla Motors Inc (NASDAQ:TSLA) being a persistent target of short sellers, it is quite clear from recent activity that Tesla feels it has a real opportunity to aggressively expand in the little exploited electric car sector. As mentioned previously, pollution from domestic traffic is a massive problem in many parts of the world, and as industrialization accelerates this is set to become a bigger issue still.
Additionally, financial factors would also seem to be a serious consideration. In a world in which it is often asserted that oil supplies are dwindling, and even if they do last for some decades there is economic pressure on oil prices, the opportunity to drive a car around with no overhead costs will be an attractive proposition for many. If production costs come down and the networks of Tesla’s chargers expand in scope then the electric car may become an excellent option for families on a budget, for example.
The CEO of Tesla, Elon Musk, has recently spoke about the company’s intentions to greatly increase both the reach of their supercharger network and their customer base in Europe. Musk ambitiously predicted that by the end of 2014 it will be possible for Model S drivers to travel almost anywhere in Europe using only superchargers.
Far from listening to the naysayers and reigning in its ambition, Tesla Motors Inc (NASDAQ:TSLA) is shooting for the stars and envisioning a world in which the electric car is a serious rival to the traditional gasoline-powered vehicle.