Electric Car Maker Tesla Motors Might Open Factories in Asia and Europe

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With the demand for U.S. based Tesla electric cars growing steadily, Tesla Motors is said to be mulling options to open factories in Asia and Europe. Factories in the region would allow Tesla to reduce the cost of its cars and sell higher numbers than it is currently selling.

As of now, the Model S is the only Tesla car in production, since the Tesla Roadster ceased production in 2012. Still, the company is expecting global sales of 40,000 for the Model S in 2014, which is a sizeable number for a niche luxury car manufacturer. Tesla is also expected to launch a new model next year called Model X.

As of now, the company’s only factory is located in the U.S., where all the cars are assembled before they are shipped worldwide. Tesla Motors already has a component production factory.

One of the reasons why Tesla is so keen to start up new factories could be because it is planning to launch a smaller model sometime in the next few years, and its existing production facility will not be able to handle the increased load.


Tesla Motors’ First Steps in Asia

Tesla Motors opened its first showroom in Asia in Aoyama, Japan in 2010. It also expanded into Hong Kong in 2011, where the city’s administrators are now looking to make their city environmentally friendly, by supporting vehicles that cause less damage to the environment. The company is also planning to open a showroom in Beijing, China. 

Interestingly, the company first entered the Asian market through a showroom in Singapore, but soon withdrew after the Singapore government refused to give it tax breaks.


Have Chances Improved for Tesla Motors to Enter Malaysia?

The chances that Tesla Motors will enter the Malaysian market in the near future are slim. There is already the Mitsubishi iMiEV in Malaysia, but the sales have been lackluster. Edaran Tan Chong is planning to introduce the Nissan Leaf, another electric car, in Malaysia, but it is not expecting to sell too many units either. BMW is said to be planning to bring its fully electric car, the BMW i3, to the Malaysian market, but no date has been finalized yet.


It’s expected that it would not be currently profitable for Tesla to come to Malaysia, especially when the Malaysian market for electric cars is still nascent. 

For now, Tesla fans in Malaysia will have to wait.

What are your thoughts about Tesla Motors and the electric car market in Malaysia? Post a thought in the comments below.

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Photo Credit: Flickr – Sam Felders

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