Chinese Automaker Looking To Beat Tesla Motors Inc At Its Own Game

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Chinese Automaker Looking To Beat Tesla Motors Inc At Its Own Game
Blomst / Pixabay

Tesla Motors Inc (NASDAQ:TSLA) is becoming popular in China not only among those engaged in the auto industry but also among consumers in the country. The coverage of the Chinese media about the U.S. based electric car manufacturer has a significant number of readers, which only means that the company developed some fans.

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Elon Musk, chief executive officer of Tesla Motors Inc (NASDAQ:TSLA) will personally kick off the sales of the company in China and he will personally supervise the delivery of its Model S vehicle to customers. The electric car manufacturer believed it has a huge potential in China, and Musk believed that the country will become its largest market. He projected that Tesla sales in China would match its sales volume in the United States as early as 2015.

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Beijing Automotive will partner with American company

A Chinese auto-maker wants to put the breaks on the aspirations of Tesla Motors Inc (NASDAQ:TSLA) to become the leader in the electric car market in its own territory. During the Boao Forum for Asia, Xu Heyi, chairman of Beijing Automotive Group said his company aims to lead China’s electric car market.

According to Heyi, his company will partner with an American automaker to develop a new model of electric car next tear. He said, “The new model will outperform Tesla’s Model S.” He added, “The auto industry knows very well about Tesla’s Model S. [Tesla motors Chief Executive] Elon Musk won’t become Steve Jobs for sure.”

He also commented that the aggressiveness of Tesla Motors Inc (NASDAQ:TSLA) in making its electric car popular is something to learn from, but the company does not offer anything new when it comes to technology.

Furthermore, Heyi said Beijing Automotive Group acquired a 25% stake in Atieva, an energy company based in the United States that provides core system to major car manufacturers including Tesla Motors Inc (NASDAQ:TSLA) and Audi AG (ETR:NSU).

No big impact on Chinese market

On the other hand, Zhu Fushou, general manager of Dongfeng Motors opined that Tesla Motors Inc (NASDAQ:TSLA) will not have a big impact on the Chinese market. He said, “Tesla is aiming to sell 70,000 cars, which is a very tiny niche market in China.”

Dongfeng Motors has been engaged in discussions for six months to purchase Fisker Automotive, Inc., another American electric car manufacturer. Fushou noted that many U.S. electric companies depend on government financing. 

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Marie received her Bachelors Degree in Mass Communication from New Era University. She is a former news writer and program producer for Nation Broadcasting Corporation (NBC-DZAR 1026), a nationwide AM radio station. She was also involved in events management. Marie was also a former Young Ambassador of Goodwill during the 26th Ship for Southeast Asian Youth Program (SSEAYP). She loves to read, travel and take photographs. She considers gardening a therapy.
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3 COMMENTS

  1. Yes it’s all about the charging network. More than just the access, the long term real estate play. When Tesla puts superchargers into a strip mall, the restaurants and stores do better. The land they sit on becomes more valuable once the chargers are in place, and who is the only one who knows where they will be going before they are built?

  2. Exactly. Not only that but while the ballsy automakers are trying to catch the Model S and presumably the X, by the time they do realistically speaking Tesla will be reaping the benefits of the Model E. 10 years down the road assuming the majors have caught up car wise, how big will be Tesla’s supercharger network at that point? It would actually be cost effective for the majors to license and use the network than attempt to build one of their own. Even if they really wanted do I don’t know a single automaker with the funding to be able to do so at this point. Either way it’s a win for Tesla, Elon and honestly the world if we adopt as quickly as I hope we do.

  3. Perfect! This EV adoption and competition is exactly what Tesla wants. All comers will have to do the marketing spend, and be forced to compare their products to Tesla’s Gold Standard. Tesla gets free marketing, and the big guys plow the field market-adoption wise while Tesla leap frogs them with innovation.

    Game on Tesla, wait for Gen 3 to see what this company is Actually worth.

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