Tesla Looks Overseas for Future Growth

Tesla looks overseas for future growth
Tesla looks overseas for future growth

While many of the more established automobile manufacturers are struggling with the logistics of the worldwide electric vehicle marketplace, Tesla already seems to be looking to the future. Chief executive officer Elon Musk has this week confirmed the company has been investigating building additional factories in Europe and Asia, to allow it to fulfil expected future sales overseas. This is perhaps the first time that Tesla has openly discussed the potential to build its range of electric vehicles overseas, although it makes perfect sense.

At this moment in time, it is the Tesla Model S which is grabbing the headlines with the company expected to manufacture 21,000 units this year, with a doubling of volumes in 2014. When you bear in mind that this particular vehicle cost $70,000 there is an enormous amount of potential for Tesla to use this income to fund future expansion.

Affordable electric vehicles

As we have mentioned on numerous occasions, Elon Musk recently confirmed that the company is looking towards the creation of an affordable electric vehicle in the $35,000 range, with journey capacity of around 200 miles per full charge. Due to the relatively cheap nature of this proposed vehicle the company has decided it would be beneficial to manufacture these volume cars nearer to their local markets. Europe, Asia and other areas of the U.S. seem to be probable locations for additional Tesla factories in the short to medium term and we should hear more news on these plans fairly soon.

Quote from ElectricForum.com : "Last week I setup an appointment for a test drive with the new Model S. I've seen the car, sat in it, and messed around with the display previously in the show room, and have been waiting for them to get a test drive vehicle locally so I can give it a spin."

Tesla has a habit of drip feeding news to the marketplace, building momentum, and building anticipation ahead of groundbreaking announcements. Can we expect more news on the company’s "affordable electric vehicle" in the short to medium term?

Moving out of the US

While there is no doubt that the U.S. automobile market is the major market in the world there is also no doubt there is enormous potential in Europe, South America and the Far East. While many of Tesla's competitors seem to be treading water at this moment in time putting their own U.S. operations into order, yet again Elon Musk seems to be one step ahead.

It will be interesting to see what kind of financial incentives governments around the world are able to offer Tesla in exchange for building manufacturing plants in their locality. The fact is that electric vehicles are here to stay, they are moving towards the mass market and with Elon Musk at the helm it seems as though Tesla is again leading the market towards the next stage of development.

Conclusion

Yet again, Tesla Motors seems to be one step ahead of its competitors and while U.S. automobile manufacturers continue to jockey for position in the U.S. market, Tesla is already looking towards the next stage. It will be interesting to see whether the idea of European and Asian-based manufacturing plants are finalised in the short to medium term and indeed what kind of reception existing Tesla vehicles, and the much awaited "affordable" Tesla EV, receive in foreign lands.