Tesla Motors Inc (TSLA)’s Expansion in Asia is Benefiting Local Firms

California based electric vehicles producer, Tesla Motors Inc, announced that it would be entering the Taiwanese market a few weeks ago, on the 04/07/2016. According to reports, Tesla’s entry in the market is set to benefit a number of local firms, including BizLink Holding Inc (a vehicle harness producer) and Delta Electronics (a power system management supplier.)
Tesla Motors IncAccording to an article published on Taipei Times, sources expect Tesla to build charging stations in Taiwan in the near future. Customers in Taiwan can now order the Tesla Model S via the firm’s website, making Taiwan the 6th Asian Country the Tesla sells its electric vehicles (EVs) in. Initial shipments of Model S EVs into the Country are expected in the first quarter (Q1) of 2017.

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Sources have suggested that Tesla Motors Inc will build around 10 charging stations across Taiwan. This has attracted the attention of a few local firms, as they could assist in the construction of the stations. Internationally, Tesla currently operates almost 800 supercharging stations.

The article posted on Taipei Times gives more info on how firms may assist, as well as other details regarding the car maker’s entry into this new market. It reads “They said Delta Electronics is expected to take the lead in power management solutions for Tesla’s charging stations, as the Taiwanese firm has long been exploring the global electric car market with a wide range of products to meet demand from its various clients in the US, Europe, Japan and China. However, the sources said that while the government has pushed for the development of the electric vehicle industry, local construction and security regulations have failed to catch up with the developments and efforts to set up charging stations could be hampered.”

As the NASDAQ closed on the 29/07/2016, Tesla Motors Inc’s stock had gained by 1.81%, trading at $234.79 per share. The firm is currently valued at $34.57 billion (by market cap.)

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