Tesla Motors Inc (NASDAQ:TSLA) plans to install 30 new service centers and stores in Europe, expecting a rise in sales in the region, and in Asia, as well. In a statement given at the Geneva auto show, the automaker said it expects the combined sales from Europe and Asia to be twice that of in North America in 2014.
Gigafactory to boost Tesla Motors Inc (TSLA) market share
Tesla Motors Inc (NASDAQ:TSLA), which plans to build the world’s largest lithium-ion battery factory, revealed intentions to introduce right-hand-drive versions of Model S, in the U.K. The company also plans to introduce leasing and financing programs for European customers.
According to Ed Kim, vice president of industry analysis for consultant AutoPacific Inc, “Growing international sales is a crucial part of the plan for the Tesla, but it won’t be easy.” However, the analyst notes that many of the potential customers in China and Europe may not be able to enjoy the same level of charging infrastructure as available to North American users.
Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk, who expects a 55% rise in global auto sales this year, announced plans to construct a so-called gigafactory in the U.S costing around $5 billion. According to Morgan Stanley analyst, Adam Jonas, the new facility would allow Tesla to produce cheaper versions of its vehicles helping it to double its global market share to around 1%.
China an important market
In 2013, Tesla Motors Inc (NASDAQ:TSLA) sold around 22,500 battery-powered vehicles. Tesla’s Model S, which is priced around $71,000 in the U.S., is available in many of the European countries including Belgium, Denmark, Germany and Switzerland. Musk, the co-founder and biggest shareholder of Tesla, has been talking about entering China, and in an interview earlier, revealed plans to travel the country in late March to promote the brand.
In January, Tesla Motors Inc (NASDAQ:TSLA) revealed the price of its Model S sedan in China, which surprised many. The Model S is priced at 734,000 yuan or $121,000 in Beijing, which is only $40,000 more than the price in U.S. The difference in prices is primarily due to the unavoidable charges like import duties, taxes and transportation charges. Tesla Motors’ price was much lower than the analyst expectation, who were anticipating the company to target the wealthiest customers in China.