Tesla, Inc. and Their Global Economic Presence
Tesla, Inc. is an ever-growing electronic automotive and energy company. They are an innovative company in the global world and are bringing about technology that will potentially spread worldwide. They are currently heavily focused on research and development, but many investors from around the globe see it as a high-reward business investment. Tesla is currently producing electric cars that could shake the very foundation of an industry that has been growing for over a century.
Recently, Tesla has announced operations to set up the world’s largest lithium-ion battery system in Australia (Normile). In addition, they will be working with the French renewable energy company Neoen in a deal with the state of South Australia (Normile). Tesla is taking a strong initiative with foreign countries to further develop technology globally. Geoffery James, a renewable energy engineer at University of Technology Sydney, believes “it might also win over skeptics who doubt that renewables can match the dependability of conventional fossil fuel and nuclear power plants” (Normille). This project could prove invaluable knowledge for the future of the world, as many countries will certainly adapt these practices if it proves efficient and an environmentally friendly alternative.
Tesla is also breaking ground with their electric vehicles in China. China has recently been described as the world’s largest electric-car market (Moss). It seems as if electric cars have become an ongoing fad in China, but this is due to pressure from the government itself. They are strong-arming citizens into buying electric cars by making it the only sure way to get license plates in crowded cities (Moss). While this is a very brass approach of attempting to make the country more environmentally friendly, it shows what might become a norm for other countries as well. By making choices that benefit the earth, they make the daily lives of citizens less troublesome as an incentive. Because of this, Tesla has seen a boon in popularity in the domestic market as China’s native auto makers struggle to keep up (Moss). Tesla is considered an innovator and a one-of-a-kind in the auto mobile industry, and it’s easily defined with the terms “green” or “environmentally friendly”. This is a big reason as to its booming popularity, but also because it appeals to the middle-class worker.
It can be said that it is because of these policies in China that Tesla has quite a future in the global market. Analysts noted that “… and realistically Tesla’s most capable global peers are probably years away from releasing locally-built luxury electronic vehicles” (Kim). Right now, Tesla is a lone salesman in a market that is teeming with potential customers. China’s recent influence to incentivize purchases of electronic vehicles only help them further. Tesla’s China sales of $319 million in 2014 rose to $1.07 billion in 2015 (Tesla, Inc.) Should the company pursue the opportunity, there is no doubt that it will see a large increase in revenue to better handle the doubts that investors may be having with its recent productions. They have a lot of room to grow globally, and China is simply one country that is moving towards a green community. Other countries are expected to follow as concerns over natural resources continue to rise.
In conclusion, Tesla is a renewable energy and electric vehicle company that is sweeping the global market. Many countries are welcoming its advanced technology that is bringing clean energy efficiently and inexpensively. They are proving to be a leading competitor in the energy business as they secure strong deals globally that will help shape the future and project an image of what our daily lives will become in the coming decade. The market for the products is already beginning to flourish as countries such as China become more aware of their imprint on the world. As Tesla upholds the environment with its auto mobile products, it proves to be a go-to alternative that everyone is looking to drive. While many speculate that this technology is truly capable of replacing our current way of life, investors are taking advantage of Tesla’s development period and getting involved early as they expect it to grow in the future. Tesla continues to create innovative renewable energy equipment that accommodates the changing values of the daily citizen to treat their surroundings better. This cause alone is something that Tesla strives for, and has become vastly popular because of their intentions to do so. With the rise in global expenditures and imprint that Tesla is currently undergoing, there is no doubt that the company has a head start on competitors in the market. and it is becoming a very green brand that everyone recognizes.
Kim, Tae. "China Will Eventually Be Tesla's Biggest Market, Analyst Predicts." CNBC. CNBC, 27 Sept. 2017, www.cnbc.com/2017/09/27/china-will-eventually-be-teslas-biggest-market-analyst-predicts.html
Moss, Trefor. "China, With Methodical Discipline, Conjures a Market for Electric Cars." The Wall Street Journal. Dow Jones & Company, 02 Oct. 2017, www.wsj.com/articles/china-with-methodical-discipline-takes-global-lead-in-electric-cars-1506954248
Normile, Dennis. “Tesla to Build Titanic Battery Facility.” Science, American Association for the Advancement of Science, 26 July 2017, www.sciencemag.org/news/2017/07/tesla-build-titanic-battery-facility.
Tesla, Inc. Annual Report On Form 10-K, December 31, 2016. http://ir.tesla.com/secfiling.cfm?filingID=1564590-17-3118&CIK=1318605