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Submitted by - Group 16: TESLA: Internationalization From Singapore To China

Tesla is an electric vehicle manufacturer that began by targeting high-end customers with expensive vehicles like the Roadster. It has since introduced more affordable vehicles. In 2010, Tesla opened its first store in Singapore but faced challenges from high prices and lack of tax breaks. The document discusses Tesla's consideration of expanding to China, the world's largest auto market, where government policies support EVs. It recommends Tesla learn from past experiences and craft an entry strategy to gain a larger global presence and take advantage of China's growing market and EV incentives.

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Shashikant Nayak
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638 views9 pages

Submitted by - Group 16: TESLA: Internationalization From Singapore To China

Tesla is an electric vehicle manufacturer that began by targeting high-end customers with expensive vehicles like the Roadster. It has since introduced more affordable vehicles. In 2010, Tesla opened its first store in Singapore but faced challenges from high prices and lack of tax breaks. The document discusses Tesla's consideration of expanding to China, the world's largest auto market, where government policies support EVs. It recommends Tesla learn from past experiences and craft an entry strategy to gain a larger global presence and take advantage of China's growing market and EV incentives.

Uploaded by

Shashikant Nayak
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

TESLA: Internationalization from Singapore to China

Submitted by – Group 16
Tesla - Introduction
• It designed, manufactured & sold fully-electric
vehicles(EVs) & powertrain components
• Mission – To accelerate the advent of suitable transport
by bringing compelling mass market electric cars to
market as soon as possible
• Partnered with Panasonic to develop lithium-ion
rechargeable battery to resolve driving-distance-per-
battery-charge issue
• Partnered with Daimler & Toyota to overcome design &
performance issues
• By December 2012, it operated a network of more than
30 stores, sales & service centres and galleries around
the world
Tesla - Products
• Tesla introduced its 1st vehicle in 2018 – Tesla Roadster
priced at $109,000
• Tesla’s 2nd vehicle – Model S sedan was released in North
America in June 2012 priced between $52,400 and
$72,400
• Model S was different from the Roadster in that it had an
adaptable platform architecture and its own electric
powertrain
• Tesla unveiled its 3rd vehicle – Model X in February 2012
& intended to produce by 2014
• Tesla had outlined plans to release a car priced between
$30,000 and $40,000 in the long-term
Tesla - Strategy
• Started by developing & marketing high-end products for
affluent customers
• Once its products & customers become mature, company
would use the profits and experience to refine its
technology
• Sold its vehicle by making them available through their
own dealerships – compelling customer experience
• Blankenship’s showrooms enabled Tesla sell its own
vehicles without violating the dealership laws
• Singapore with its go green policy, technological
advancements provided a suitable opportunity to expand
Tesla in Singapore

• Transport Technology Innovation and Development


Scheme(TIDES) was a great opportunity for electric car
manufacturers to build their presence
• 2010 – Tesla opened its first store & service centre in
Singapore
• Tesla’s price for the Roadster was much higher than
other vehicles like Mitsubishi i-MiEV
• Tesla didn’t get any tax breaks as it was reported that
they didn’t meet the technical requirements for Evs
Past Issues

• 2007 - Roadster delays


• 2008 – Credit Crunch & Oil Prices
• 2011 – Lotus contract expired
• American state laws prevented direct sell of
vehicles by manufacturers
• Consumer concerns – Long-distance travel,
Recharge time etc.
• 2012 – Demanded exceeded supply
Current Issues

• Is it the right time for Tesla to enter China?


• What Elan Musk could learn from past experiences in
order to make China a success?
• How could he deal with some of the unknowns that
confronted the company in China?
• What should the company’s entry strategy should consist
of?
Recommendation
It is the right time to enter the Chinese market as
 Largest growing auto market worldwide
 Most populated country
 Govt. taken variety of approaches to reduce
emissions
 Govt. provides tax credits for those who
purchase EVs
 Potential subsidies for some EV manufacturers
Recommendation
Should consider international expansion
 It should seek to gain more global presence
 Increase its own brand awareness
 Target countries with EV infrastructure currently
developed

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