Tesla Motors, Inc. (TSLA) plans to expand its operations in Hong Kong to establish sustainable transportation in the city, according to sources. Tesla expects its operations in Hong Kong to lead the way for electric vehicle success in Asia. Deemed to be the Norway of Asia by the company, China offers substantial growth opportunities.
Tesla currently employs 50 people and expects to double the strength by the end of the year. The company has also hired a country director for China. Moreover, the Chinese government’s support for electric vehicle production for sustainable transportation encourages the company.
Being a small territory spanning across 10 miles, customers in Hong Kong are expected to charge their vehicles only once a week, which is an added advantage apart from the environment angle.
Notably, Tesla started operating in China this year and is undertaking different measures to expand its dealerships and charging stations in the country. It also expects that China sales will be on par with that of the U.S. by 2015. Tesla further plans to produce 100,000 premium electric cars by late next year and also sell at least 500,000 cars annually worldwide by then.
Tesla also intends to establish new stores, service centers and a Supercharger network in China. The electric carmaker further plans to open 10 to 12 stores in China by the end of 2014 and has inaugurated its flagship store in Beijing in Nov 2013. Tesla expects China to account for 30–35% of its global sales growth in 2014. Additionally, Tesla aims to start vehicle manufacturing in China by 2017–2018.
Currently, Tesla sports a Zacks Rank #1 (Strong Buy).
Other well-performing auto stocks worth considering include Advance Auto Parts Inc. (AAP), O'Reilly Automotive Inc. (ORLY) and Fox Factory Holding Corp (FOXF). All these stocks have a Zacks Rank #2 (Buy).
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