5 Reasons Why Tesla Motors Inc. Can't Lose in China

Why China could be the next big catalyst for Tesla Motors.

Tamara Walsh
Tamara Walsh
Jul 21, 2014 at 9:07AM

Tesla Motors (NASDAQ:TSLA) is pushing the boundaries once again, only this time it's doing so in China. The world's largest auto market holds a lot of promise for a company like Tesla, which makes and sells the fastest gas-free cars available today. Yet, some analysts worry that the excitement for Tesla's Model S in China is overblown.

A Forbes article in May, for example, had this to say about Tesla's prospects in the Asian country: "Tesla's white-hot PR is generating a media sensation and long lines outside of the company's only China store in Beijing, but we believe actual purchases could fall short of expectations." That is one of many articles that underestimates Tesla's opportunity in China. However, patient investors with a five- to 10-year time horizon could potentially benefit from this pessimism. Tesla Motors is still in the very early stages of its rollout in China, and with plans to start manufacturing cars in China in the next few years, the opportunity could be much bigger than many people think.

Check out the presentation below to discover five reasons why China could be the next big thing for Tesla Motors and its shareholders.


5 Reasons Why Tesla Motors Opportunity in China is Bigger Than You Think from The Motley Fool