SOURCE / COMPANIES
Tesla launches new store in Shanghai, expects continuous growth in Chinese market in 2021
Published: Dec 25, 2020 09:42 PM

A Tesla Model 3 electric car is seen at the Automobile exhibition area during the third China International Import Expo (CIIE) in Shanghai, east China, Nov. 6, 2020.Photo:Xinhua


US electric vehicle manufacturer Tesla concluded 2020 with a new store unveiled on Thursday in Shanghai, which will provide consultations, test drives, test delivery, and after-sales services based on Tesla’s direct sales model, the company said in a statement issued to the Global Times. 

Compared to some Tesla stores in commercial cycles which have no delivery or after-sales services, the new store has more functions and services included, observers said.

Tesla’s performance in the Chinese market gained positive momentum this year, driven by the swift economic recovery post-COVID-19 and growing consumer demand for new-energy vehicles, industry observers said, noting it will see more growth in the next year, depending on the production capacity of its Gigafactory in Shanghai.

In the second quarter of this year, the company saw its revenues in the Chinese market surge by 102.9 percent, registering $1.4 billion. China raked in 23.19 percent of the company’s total revenue in the second quarter, becoming Tesla’s second largest sales market following the US in the second quarter. 

In November, it hit 21,604 units in China, up 77.9 percent month-on-month, according to data from the China Passenger Car Association (CPCA). 

“Tesla's production in China this year can reach 150,000 units, and it can sell about 130,000 of them, accounting for more than 30 percent of global sales, Cui Dongshu, secretary general of the CPCA, told the Global Times on Friday.

It is estimated that, in 2022, 40 percent of Tesla sales will come from China, Wedbush Securities said in a report in November. The report noted that Tesla’s factory in Shanghai will also become a major competitive advantage. 

Tesla set the new outlet, the 20th one in Shanghai, on Shibo Avenue alongside the city’s Huangpu River. “It shows Tesla's determination to take root in Shanghai and China in the context of trade globalization,” the company said.

As Tesla seeks to expand its market share in China, it has expanded its production lines in China to charging piles for electric vehicles.

Following the establishment of the Gigafactory in Shanghai, Tesla’s charging pile factory in Shanghai's Lingang new area, a new project that the company announced to launch on November 23, has begun to take shape and is about to start production, Securities Times reported Friday. 

In November, the company said that the new plant, with an estimated investment of 42 million yuan ($6.4 million), is expected to start production in the first quarter of 2021, with an initial plan to produce 10,000 charging piles per year.

The charging pile factory will promote the rapid development of Tesla’s charging network in China, as the network will not only satisfy client demand in charging convenience and attract more sales, but also win the company an exclusive advantage in competing on the NEV market, Cui noted

“In a certain area, power capacity and land resources are limited, if one company comes in first, the others get put into in a passive position,” Cui said.

So far, Tesla has established more than 600 charging stations in the Chinese mainland, covering over 290 cities, the company said.

Tesla's largest super charging station in the world with 72 charging piles, in Shanghai’s Jingan district, will also be launched soon.

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