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