Tesla Future in China Unclear

Some people, like Sogou CEO Xiaochuang Wang has interested into Tesla for a long time. However, Tesla in China is just open for reservation, and it is still uncertain when it is allowed to do business in China, and how is the market going at that moment. The uncertainty based on three aspects: how Tesla solves its brand squatting, when it passes Chinese government approval procedure and whether it is able to break dim market performance for new energy vehicles.

Tuosule Auto Sales Ltd. is found by Tesla in China. The first experience store is located in Beijing. According to Beijing Industry and Commerce Bureau information, Tesla registers Tuosule on November 7, 2012. Register capital is 2 million US dollar. And legal representative is Deepak Anuja, CFO of Tesla. Its operation time is 30 years.

However, it is still unclear when Tesla opens for business in China. According to approval procedure in China, Tesla has to fit the following requirements before it opens for business. The first is founding head sales company in registered location, and then set local distribution companies. Secondly, the company products have to pass 3C certification test, environment protest test and Inspection and Quarantine Center of State Administration of Quality Supervision business test. The third, applying for import automobile certification for Automobile Dept. of Commercial Ministry. The last is Lithium battery Certification.

As reporter known from New Energy Automobile Test Center in Shanghai, Tesla has applied 3C certification last year, and the test is almost finished. However, staff of Automobile Dept. of Commercial Ministry told reporter that the dept. has not received Tesla application for import automobile certification and the company has not filed up to now.

Musk, founder of Tesla, told media during interview that Tesla will be sold at the same price all around the world, but only extra for transportation and tax. At present, Tesla Model S price is around 70 to 100 thousand US dollar. If the model is sold in China, price should include 25% import tax, 17% VAT & consume tax. Therefore, the price should be around 600 to 850 thousand Yuan.

Tesla is still researching for vehicle configuration, price and selling location in China. Besides, how to charging the vehicle is another problem for potential buyers. In USA, Musk can build charging station by his company. However, companies such as State Grid monopolizes charging station build in China.

Tesla experience store staff is not worried about the charging problem. “First, buyers of Tesla normally are rich. They will not have any charging problem bothering them in their houses. Besides, Models S has 500 km range after one charging, which means it is able to drive for couple of days. ”