Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



How Tesla Motors Plans to Supercharge the Autobahns of Germany

"I feel like if we can't do well in Germany, then that's not a good sign," Tesla (NASDAQ: TSLA  ) CEO Elon Musk jokingly told a crowd that gathered at a Tesla service center in Germany in October. 

Though Musk's comment facilitated some good laughter, the announcements to follow, and Tesla's actions since his talk in Germany, suggest the company isn't taking its expansion into the country very lightly.

Recently opened Supercharger station in Germany. Source: Tesla's official Twitter feed.

Two big announcements
During the event in Germany, Musk made two major announcements.

First, recognizing Germans' love to drive their high-end vehicles at top speeds on the autobahn, Tesla will offer customers a free optional high-speed tuning. The tuning, Musk says, enables a better driving experience at top speeds.

Second, Tesla will be making a huge investment in its Superchargers in the country. Already breaking ground on six Superchargers at the time of the announcement, Musk says Tesla plans to have about 40-50 Superchargers in the country by the end of 2015, giving 100% of the population of Germany access to a Supercharger station. The company plans to approximately double the number of Supercharges in the country every quarter all the way through the end of 2015. This should give chargers approximately 200 km spacing -- shorter than the average distance in the U.S., probably due to expected higher driving speeds, which would decrease Model S battery range. Even more, Superchargers will boast a power upgrade over those in the U.S., offering 135 kW powered charging stations as opposed to 120 kW in the U.S.

An important market
Just how important is Germany to Tesla?

"We're going to be making a big investment in Germany. In fact, right now, Germany is our top focus in the world," Musk said at the October event in Germany.

For the Tesla Roadster, Germany was the company's second-biggest market in the world. Over the long haul, Musk says that Tesla believes Germany will be its third-largest market after the U.S. and China, and a market with "one of the highest per capital sales as well."

With proven excellence in engineering and performance, and a zero-emissions driving experience, Tesla believes Germans will appreciate the Model S. In fact, Tesla expects demand in Germany to be around 200-300 vehicles per week by the end of 2015, according to Forbes contributor Mark Rogowsky. On a quarterly basis, that's 3,200-4,800 vehicles per quarter. That's a significant number considering that Tesla said during it's second-quarter- earnings call that demand for all of North America was about 5,000 cars per quarter based on weekly net orders at the time.

Already, Tesla has four active Supercharger stations in Germany, based on data from its website.

Tracking Tesla's global expansion
Of course Germany isn't the only country in Tesla's current global expansion. The company plans to begin delivering vehicles in China at the beginning of next year. Even more, it plans to rapidly expand its Superchargers into many more European countries than Germany. In fact, its Norway expansion is basically already complete.

Despite an aggressive Supercharger expansion, Tesla won't likely be able to meet demand in all of the new markets it will enter in 2014. So, while Tesla's international expansion is nice, it's only one side of the story Tesla investors will need for the stock to grow into its pricey valuation. Tesla will also have to rapidly ramp up supply.

It's a pricey market. That's why dividend stocks are more relevant than ever
Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.

Read/Post Comments (1) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 22, 2013, at 5:59 PM, rotorhead1871 wrote:

    120 miles between stations...(200km)....means they know the battery isnt good for more than an hour at speeds greater than 120 mph.....after they deep cycle that battery a half dozen times at autobahn speeds ..... it will be ready for recycle.....

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2771560, ~/Articles/ArticleHandler.aspx, 10/1/2016 5:04:20 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 19 hours ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 4:00 PM
TSLA $204.03 Up +3.33 +1.66%
Tesla Motors CAPS Rating: **