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Tesla Makes Inroads for Its Electric Car

launches its first electric car in China. The newly launched Model S, a sedan has been delivered to eight customers in the mainland. They are planning to build charging stations all over the country but for now the cars can be charged from wall socket only.

Targeting a Charged-Up Market

China has been on the top list of all the automobile companies as it is a developing country. There is huge room for growth in the economy as the car ownership rate in the country is less than 80 per 1,000 people. And as per capita income and discretionary income is rising, people tend to improve their life style and standard of living. Automatically they tend to keep aside a part of their earning in purchasing a car.

The middle class of China has been increasing rapidly and so their demand for luxury cars is also increasing. Another factor working in favor of Tesla is the fact that the Chinese government is in support of the adoption of electric cars as the nation is facing the threat of increased pollution level.

The Plan

Tesla plans to establish manufacturing units of electric cars in China in the next three to four years. As of now they are planning to invest millions on the infrastructure of the setup of the charging stations across the country. Now here lies the main challenge of launching an electric car. There are huge infrastructural costs related to making electric car more viable on the roads. Once more and more charging stations are available, higher numbers of buyers would consider buying an electric car.
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