Tesla Entrance to Chinese Market l Assignment

MARKETING

Marketing 1
Contents
Tesla entrance to Chinese Market.................................................................................... 2
Marketing point of view................................................................................................ 2
Market share.............................................................................................................. 2
The response of the market............................................................................................ 3
Campaign................................................................................................................. 3
Growth..................................................................................................................... 3
References................................................................................................................ 5
Appendices............................................................................................................... 7

Marketing 2
Tesla entrance to Chinese Market
Tesla is an American electric automobile producer. The organisation was established in 2003
to advance an electric sports car. Tesla is a wholly-owned company in China. Tesla has put a
significant emphasis on China. Tesla started doing production in China in October 2019 and
it is the first segment of the company outside U.S. China has welcomed Tesla with the hope
to get a lift from an interest in new energy vehicles. Tesla has decided to offer Model 3 cars
in its Shanghai factory in January 2020. The company could face a lot of challenges in the
Chinese market comprising a cooling electric vehicle (EV) market and increasing rivalry.
China also remains a ‘swing factor’ for Tesla’s stock and it lately marked a high record
(Zhang, 2020). The government has provided subsidies to cut the price of Model 3 in China.
Initiating manufacturing in China, assisted Tesla to evade import tariffs on its cars in China.
After Shanghai’s Gigafactory, Tesla has decided to set up a new design and research center in
China for serving one of the major markets for its electric cars.
Marketing point of view
The initiatives taken by the Chinese government towards EV, grants and venture capital cash
has assisted spawn masses of start-ups in China. The brands like Xpeng Motors, Nio and WM
motor are trying to produce the EV in China. The executives at these start-ups are
anticipating Tesla’s access to the Chinese market give them a lift too. The market conditions
of China for Tesla are quite suitable for the production point of view (New Horizons, 2020).
It will assist tesla in appealing to more buyers and buyers will look into EVs. Tesla will have
tough competition with WM cars. A push of Tesla will have both challenges and prospects
for Chinese players. Tesla will be much bigger in the Chinese market than any of the brands
in terms of market capitalization and the number of cars offered worldwide. When it comes to
the opposition, Tesla will have majorly two competitors, WM Motor and Xpeng (Valikangas,
2018).
Market share
The performance of Tesla will be thoroughly viewed by the investors who anticipate a big
evolution prospect for the stock. In January, the company hit with a high record of $454 last
week. The performance in terms of the market share has been assisted by the element that the
company beat market approximations for vehicle deliveries in the 4th quarter. It is believed
that China remains the foremost blow influence in the stock and eventually having worth
between $75-$100 per share to tesla’s valuation with Giga 3. It has been estimated that tesla