Boston, MA 04/23/2014 (wallstreetpr) – Although Tesla Motors Inc (NASDAQ:TSLA)’s share prices continued to see a downward trend till last Thursday, as it fell by 2.78% from the previous week’s close, it seems to have picked up this week. Tesla rose by 3.16% on Monday.
It seems as though, investors in the company are simply excited as Tesla delivered its first cars to China.
Chinese launch and further plans
The company hosted a ceremony at its office in Beijing, where eight Model S sedans were delivered to Chinese customers. Elon Musk, CEO of Tesla Motors Inc (NASDAQ:TSLA) spoke to the media and a packed crowd at an event, on Monday. This event was called Geekpark Conference.
He said that he planned to invest several hundreds of million dollars to build charging stations across China. These charging stations are important for Tesla’s Model S sedans while travelling long distances. Musk also stated that the company had future plans to manufacture cars in China itself, and that could begin as early as 3-4 years.
Tesla Motors Inc (NASDAQ:TSLA) always looked positive about its entry into Chinese markets and knew there would be that demand for electric vehicles. China, as such, plans to cut down on emissions by moving more towards environmentally cleaner vehicles. In fact, the country plans to have about 5 million alternative energy powered vehicles by 2020. At present, it lags that target by a sizeable margin. The nature of high costs and lack of proper charging facilities have been playing their role in this too.
This is one of the main reasons that Tesla Motors Inc (NASDAQ:TSLA) is willing to invest quite the sum, in order to build charging stations.
Gigafactory plans
Musk was also quick to talk of Tesla’s gigafactories that are supposed to be built in the U.S. He mentioned that Panasonic were the most likely contenders to partner Tesla for the manufacture of batteries. According to the Wall Street Journal, Musk made these comments in way as if he would be surprised if Panasonic didn’t turn out to be their partner.
These gigafactories are being built by Tesla Motors Inc (NASDAQ:TSLA) to meet the demand for batteries that would rise in the near future.
