Why Tesla’s Billion-Dollar China Play Is Key to Its Survival
- China set to remain largest electric-car market for decades
- Tesla’s high prices see it lagging local carmakers on sales
Tesla Inc. is embarking on a Chinese expansion costing billions of dollars for a good reason: the country is set to remain the largest electric-vehicle market for decades to come, and Elon Musk has a long way to go if he wants to dominate it.
Demand for electric cars will continue to gain ground in what is the world’s fastest-growing auto and consumer market, as the government -- which is cracking down on pollution and re-making its factory-led economy as high tech -- favors them over gas guzzlers. Beijing has been pushing policy to fuel the rise of EVs, giving owners registration breaks and offering tax incentives for buyers. And while other countries are making inroads, China will remain the leader through at least 2040, Bloomberg New Energy Finance predicts.