Tesla’s growth in China

Following my previous post on electric car batteries’ sluggish development, news just came in that Tesla signed a deal with China’s real-estate developer Soho to expand their car-charging outlets in Beijing.

The deal would comprise a total of 9 charging spots around Soho’s properties in the downtown area of Beijing.

On June 11 2014, Tesla also promised to build 40 more charging points around China (according to an agreement signed with Yantai Holdings).

Now one would wonder, is an increment of 9 charging stations going to make any dent in the development of electric car market? The Chinese government targets to have a goal more than 5 million electric cars by 2020 – that is merely another 15 more years from now.

Adding charging outlets would unequivocally make the switch to an electric car more alluring because it is simply more convenient to travel and recharge your car when you need it. However, considering China’s land mass and the presence of its monolithic rivals Sinopec and CNPC (PetroChina),  it would probably take longer than hoped for to reach a state of energy nirvana.

China is the world’s second-biggest oil consumer and has a growing appetite for oil that may one day surpass that of the U.S. which views Canada’s oil sands as a pillar of its future energy needs. Canada is increasingly looking to China to sell its vast oil reserves after the U.S. delayed a decision on the Keystone XL pipeline that would bring oil from Canada to refineries in the U.S. Gulf Coast.

Quick Trivia

  • Tesla delivered the first model S cars in Shanghai and Beijing in April 2014
  • There are 3 supercharging stations in China, located in Beijing and Shanghai.
  • Superchargers, owned and built by the company, allow Tesla car owners to replenish their battery life as much as 16 times faster than at public charging stations and for free.
  • Norway, which has the highest electric-car ownership per capita, had 4,029 charging points and 127 quick charging stations. They get incentives for owning electric cars such as tax-exemption, free parking, charging and are exempt from road tolls.

References: Bloomberg, facts and details

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