Tesla Motors signed a deal today to build more than 400 charging stations in China across 20 cities. All the charging stations will be located at China Unicom retail outlets. China has recently shown a great amount of interest in automobile expansion in their country. In 2013, they led the world in automobile sales of 22 million.
The introduction of electric vehicles will also prove to be profitable to the nation. China looks to reduce the excess pollution in their country by focusing on the market for electric and hybrid cars. Also, to encourage purchases of electric cars they will stop charging sales tax on sales of electric cars. Instead, they will introduce a gasoline tax to fund the creation of the charging stations. China can’t necessarily force people to buy electric cars but they can certainly endorse and support the construction of charging stations.
According to several sources, China has sold about 5000 units of Model S this year. Despite only providing the Model S in certain cities and areas, the sales show that Model S is off to a fine start. Tesla has been one of the fastest growing companies and in 2014 their stock is up more than 79 percent. This expansion into China has helped Tesla’ s stock hit a record high and it seems that this venture will prove to be quite profitable for them.