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Tesla Export Plan to China

Executive Summary

Tesla, Inc. is an American electric vehicle and clean energy company based in Palo Alto, California. Tesla was founded in 2003 by a group of engineers who wanted to prove that people didn't need to compromise to drive electric - that electric vehicles can be better, quicker and more fun to drive than gasoline cars. Today, Tesla builds not only all-electric vehicles but also infinitely scalable clean energy generation and storage products. Tesla believes the faster the world stops relying on fossil fuels and moves towards a zero-emission future, the better.

To create an entire sustainable energy ecosystem, Tesla also manufactures a unique set of energy solutions, Powerwall, Powerpack and Solar Roof, enabling homeowners, businesses, and utilities to manage renewable energy generation, storage, and consumption. Supporting Tesla's automotive and energy products is Gigafactory 1 - a facility designed to significantly reduce battery cell costs. By bringing cell production in-house, Tesla manufactures batteries at the volumes required to meet production goals, while creating thousands of jobs.

China has proven to be a market that has a lot of potential for companies that are looking to expand and grow internationally. Within China rapidly changing demographics, rising incomes, increased consumer spending and an increasingly open business environment have all helped to make it more attractive for explanation. Electric cars are highly popular in China now days; making them desirable by its population. In China; Tesla sales doubled in 2020, to nearly $6.6 billion, accounting for 21 percent of the company's booming worldwide total. The company's Model 3 was the best-selling electric car in the country in 2020. Support from the government has helped Tesla turn China into its most important market outside the U.S. The Model 3 is now among the bestselling EVs in the world's most populous country, and in Tesla's most recent earnings report.

Why Should This Company Export?

Since 2015, China has been the world's largest electric car market. This can be attributed to many factors, one of which is environmentally conscious citizens. China is the leading emitter of greenhouse gases. In 2017 alone, an estimated 1.24 million people died from air pollution exposure. Leading many to implement a greener lifestyle including the Chinese government, whose goal is to cut emissions, making electric cars a perfect industry to align with its promotion of a greener China. They are doing this by not only supporting electric car companies but incentivising their citizens to buy them as well through subsidies. However, driving in China is not a right but a privilege and citizens can only drive if they win the plate lottery due to overcrowding. Those who register for a gas vehicle have a much lower chance of winning then those who register with an electric vehicle, making EV's more desirable. Local citizens also prefer electric cars due to unpredictable gas prices. In total there are more than 400 million cars on chinese roads dumping emissions daily, if these were replaced with EV's China's environment would see a huge impact. Tesla has an opportunity to make China a key market for their electric cars.

Export Policy Commitment statement

Tesla is currently operating in the electric car industry, which is a rapidly growing division of the entire car market. Tesla is willing to utilize necessary resources to ensure the success of our import/export venture. Tesla is also committed to providing in-depth service to this market in terms of assistance in distribution, advertising, and promotion. Tesla's overall goals are to develop long-term relationships with China's wholesalers and resellers by doing so it has been able to successfully compete in International markets.

Mission / Vision

Tesla's vision statement is "to create the most compelling car company of the 21st century by driving the world's transition to electric vehicles." This vision emphasizes the company's focus on renewable energy. Tesla's vision statement reveals the organization's aim to be the dominant player in the global electric vehicle market. Tesla's mission statement is "to accelerate the world's transition to sustainable transport." The mission objective states that Tesla is focusing on the markets to make the world lean on the use of solar and electric energy to ease up the use of fossil fuels. The company is committed to shaping the race to renewable energy, which will help the world slowly wean out fossil fuels.