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Tesla draws big names in drive for sales

2014-04-25 10:30 China Daily Web Editor: qindexing
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Tesla delivered six model S sedans and unveiled its charging station in Shanghai on Wednesday. Gao Erqiang / China Daily

Tesla delivered six model S sedans and unveiled its charging station in Shanghai on Wednesday. Gao Erqiang / China Daily

The United States-based electric vehicle producer Tesla Motors Inc has become the most dazzling superstar in China this week, not only by taking the fancy of the public but also by attracting willing cooperation from local industry leaders.

Chinese customers will be able to make a deposit for a Tesla car through Alipay, the electronic payment service affiliated with Alibaba Group Holding Ltd, according to both parties' websites.

A representative of Alibaba Group said no other information could be disclosed at this stage, but analysts said cooperation may go much further in the future as regards e-commerce.

Besides Alibaba, there is a long list of big Chinese names that have or might become partners to Tesla. JA Solar Holdings Co Ltd, one of the nation's biggest solar panel manufacturers, announced on Monday it will build solar charging stations with Tesla in Shanghai's Pudong district.

China United Network Communications Group Co Ltd said on Tuesday that it will offer comprehensive telecommunication solutions for Tesla cars in China. And China Petroleum & Chemical Corp is reportedly holding discussions with Tesla about cooperation in charging venues.

Tesla will soon set up a sales settlement center in Jinqiao, Pudong area, and give Pudong priority if it decides to build a manufacturing plant in China, according to a strategic cooperation agreement signed by the company and the Pudong district government on Wednesday, National Business Daily said.

Tesla delivered six Model S sedans and unveiled its charging station in Shanghai on Wednesday.

Its exhibit at the China (Shanghai) International Technology Fair attracted more potential customers on Thursday.

"It's stylish, for sure. My major concern is the range, and if they can successfully build a charging stand in my garage," a woman surnamed Shen said.

Tesla CEO Elon Musk said on Monday in Beijing that the company will build a large network of charging stations in China and invest hundreds of millions of dollars in the country. It will establish manufacturing facilities in China "at some point in the next three or four years", he said.

The starting price for a Model S car in China is 734,000 yuan ($118,380) at present. However, local manufacturing will avoid the 25 percent import tariff and make the price cheaper in China.

China is extending its program to subsidize the purchase of electric vehicles. Buyers in Beijing and Shanghai can get subsidies of up to 120,000 yuan and 100,000 yuan, respectively.

More cities, including Shenzhen, Hangzhou and Chongqing have announced ambitious plans to build charging stations for EVs.

"The China market will offer great opportunities to EV companies, including Tesla. If we can solve the problem of charging, all kinds of electric cars, whether they target premium clients or the mass market, will flourish," said Kurt Sievers, executive vice-president of NXP Semiconductors NV.

NXP offers automotive semiconductors to EV manufacturers including Tesla and BYD Auto Co Ltd in China. On April 1, it established a joint venture with Datang Telecom Technology Co Ltd in China, focusing on developing and marketing semiconductors for the domestic hybrid and electric car market.

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