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Growing Tesla to face competition in China

Over the past few weeks there has again been a lot of good news concerning Tesla. Tesla's sales are rapidly growing according to the company’s CEO Elon Musk. In the first quarter of this year more than 10,000 cars were sold, thus even surpassing his own expectations. The sales figures were 55 percent higher than during the same period a year earlier, it was announced last Friday. Tesla had counted on the sale of 9,500 vehicles in the first three months of the year. The company said it is facing a lot of challenges at home and abroad, such as the low price for fuel. Because of these low prices, electric driving  becomes less attractive. But there is nevertheless still a great future for the electric car.
 
Chinese companies enter the race
 
Tesla CEO Elon Musk will later this month announce the coming to the market of an improved battery for electric cars. The company will also establish a new battery factory in the USA. But Tesla is not the only have been invested in the know-how and technology of companies that want to enter into competition with Tesla. James Chao, a specialist in the automotive sector who works for the consulting firm IHS Automotive, notes that venture capital firms and other companies strongly believe in the future of the electric car. Currently at least 10 companies are already active in the sector and more are expected to come.
 
Be prepared for the Eco era
 
The coming man in the Chinese auto sector is Jia Yueting, co-founder and head of Le Holdings Co. Ltd or LeEco. This company, formerly known as LeTV, has developed a self-driving electric car under the name LeSEE. Jia Yueting says his inspiration comes from Facebook CEO Mark Zuckerberg, whose style he has copied. He believes in the concept developed by him. Tesla may have brought the automobile industry further into the era of electric cars, but now Jia has the goal of preparing the sector for the Eco era. The battle for electric cars on the Chinese market is thus underway. This market currently has a size of 320,000 cars on an annual basis, with huge growth potential. That growth will be helped by the government subsidies that should encourage the demand for electric cars.
(Image: Tesla) 10/05/2016  |  Jos Sterk


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