Executive summary

In recent years, Tesla has risen as one of the world's most innovative and successful
automakers. However, Tesla is a small company in contrast to its competitors, and it faces
various challenges as it strives to grow its business. In this report, we will look at potential
markets for Tesla to explore and the best strategy for the company to enter them. The markets
explored will be mainly China, India, and South Asia. The entry modes will primarily focus
on entry modes such as exporting goods or services, forming a joint venture, establishing a
totally owned subsidiary, and franchising the company model among other options. In the
future, Tesla will encounter substantial obstacles in growing its sales into new regions such as
China, India, and South Asia due to stiff competition from established local firms.
Furthermore, these markets have low per capita incomes and insufficient infrastructure,
which makes charging EVs challenging. Despite these obstacles, Tesla remains confident
about its prospects in both markets and intends to enter China and India through wholly-
owned subsidiaries rather than joint ventures or partnerships, as it has done elsewhere. Tesla
aims to build Gigafactories (battery production plants) which will allow it to avoid import
duties. Overall, Tesla thinks that its distinct mix of technological superiority, brand power,
and vertically integrated business model will enable it to succeed in these high-growth
sectors.
Introduction
Tesla Motors, Inc. is a Palo Alto, California-based electric car and sustainable energy
corporation. The corporation focuses in electric car production, battery energy storage from
household to grid scale, and solar panel manufacture through its SolarCity affiliate. It has
many manufacturing and assembly sites, the most notable of which being Gigafactory 1 near
Reno, Nevada, and its main car manufacturing facility, Tesla Factory in Fremont, California.
Tesla sells the Model S sedan, the Model X SUV, the Model 3 sedan, the Model Y SUV, and
the Tesla Roadster sports vehicle as of March 2020. Tesla's subsidiary SolarCity also
provides solar panel installation and batteries for homes and businesses (Alghalith, 2018).

Tesla has emerged as one of the world's most inventive and successful automakers in recent
years. However, Tesla is a small firm in comparison to its competitors, and it confronts
several hurdles as it seeks to develop its business. In this research, we will look at prospective
markets for Tesla to penetrate and the best way for the firm to enter them.

Tesla now sells automobiles in North America, Europe, and Asia. The corporation has had a
lot of success in North America, but it has had some difficulties in Europe and Asia. Tesla
has been harmed in Europe by a strong euro and a sluggish economy. Having said that, there
are still a plethora of possible markets for Tesla to enter. China, India, and South Asia are
among the most potential markets for Tesla. These cities have sizable populations and
thriving economies. They also have relatively poor automobile industry as compared to the
rest of the world. As a result, they provide a chance for Tesla to swiftly increase market
share. Partnerships with current auto businesses would be the best way for Tesla to enter
these continents. There are various other modes of entry for Tesla, and these along with
potential markets, risks, and opportunities will be discussed here in detail.

Company background
In 2003, a group of Silicon Valley entrepreneurs decided to start from scratch and create an
electric automobile firm. Tesla Motors was named after Nikola Tesla, a 19th-century inventor
and electrical engineer. The Roadster, a high-performance sports vehicle that could accelerate
from 0 to 60 mph in 3.7 seconds and travel more than 200 miles on a single charge, was
Tesla's first offering. The Roadster debuted in 2008 and swiftly gained popularity among
Hollywood celebrities and other early adopters of new technologies (Vynakov, et al., 2016).

Tesla launched the Model S, a luxury sedan that Motor Trend magazine awarded the 2013
Car of the Year in 2012. In 2015, the Model S was succeeded by the Model X, an all-electric
SUV. Tesla paid $2.6 billion for SolarCity Corp., a nationwide distributor of solar panels and
installations, in July 2017. The merger combined two firms with similar missions: to speed
the world's transition to sustainable energy through electrification. Since then, we've worked
hard to put our products and services under one roof, making it easier than ever for clients to
select sustainable energy solutions that are right for them.

Tesla bought Grohmann Engineering GmbH (now known as Tesla Grohmann Automation), a
German engineering firm specialising in automated manufacturing processes, in October
2016. With this acquisition, Tesla moved to the forefront of automated battery and car
production (Vynakov, et al., 2016).

Tesla bought Grohmann Engineering GmbH (now known as Tesla Grohmann Automation), a
German engineering firm specialising in automated manufacturing processes, in October
2016. With this acquisition, Tesla moved to the forefront of automated battery and car
production. In November 2017, we debuted our Semi truck, an all-electric Class 8 semi-truck
with a range of 500 miles (800 kilometres) between charges and the ability to transport 80
metric tonnes (88 short tons). The Semi is intended to increase road safety while lowering
freight transport costs by up to 30%. In 2020, we commenced manufacturing.

They unveiled their newest car, the Model Y SUV, in June 2018, which seats up to seven
persons and has a range of up to 300 miles (480 km). The Model Y offers enough of storage
room for camping gear or bags for a weekend escape, and it delivers the speed our customers
have come to expect from Tesla vehicles—0-60 mph acceleration in as low as 3.5 seconds
(Alghalith, 2018).

Tesla now sells electric automobiles such as the Model S, Model X, Model 3, and Roadster.
Tesla automobiles are well-known for their sleek aesthetics, cutting-edge technology, and
outstanding performance. Tesla is a multinational firm with a significant presence in a
number of areas worldwide. Tesla is one of the top providers of electric automobiles in the
United States, with a large market share in the luxury car class. Tesla automobiles are also
popular in Europe, where the firm has a significant presence in nations such as Germany,
France, and the United Kingdom. Tesla is one of the fastest-growing automakers in China,
with tremendous expansion in recent years. The Chinese market is critical to Tesla, and the
firm is actively investing in its operations there.

Tesla is also entering new areas, like India and South Africa. As electric cars become
increasingly popular across the world, these areas provide enormous potential development
prospects for the corporation.

Tesla is an American automobile manufacturer that develops, produces, and sells electric
vehicles. Tesla has a strong market position as a result of its revolutionary technology, luxury
brand image, and excellent performance (Alghalith, 2018).

Innovation
Tesla's electric vehicles are among the most technologically advanced available on the
market. The business has created groundbreaking battery technology, self-driving
capabilities, and over-the-air software upgrades. These characteristics provide Tesla with a
competitive advantage and make its vehicles more appealing to buyers (Alghalith, 2018).

Image of a luxury brand

Tesla is regarded as a luxury brand because to its high-end features and premium cost. This
offers the corporation a competitive advantage in the market, as luxury automobile customers
are less price sensitive than other consumers.

Exceptional performance
Tesla's electric vehicles are among the most powerful and quickest on the road. This makes
them interesting to driving aficionados and offers Tesla a competitive edge.

Potential markets to enter

Tesla Motors, an American car, energy storage company, and solar panel producer, intends to
enter a number of additional areas in the next years. With the Tesla Semi vehicle, the
corporation has previously indicated its aim to enter the commercial transportation industry.
Tesla also intends to join the market for self-driving cars through its Tesla Network.
Furthermore, the corporation has signalled that it intends to enter the household energy
industry with a product that competes with existing utilities.

Because of the significant demand for electric vehicles (EVs) in this sector, the commercial
trucking business is a potential market for Tesla. Trucking contributes significantly to
greenhouse gas emissions in the United States, and there is an increasing push to electrify this
business. Tesla's arrival into this industry has the potential to upend the existing quo and
hasten the transition to EVs. Another potential market for Tesla is the autonomous car sector.
For many years, the business has been working on autonomous technology and has achieved
substantial progress in this field. If Tesla is able to effectively market its self-driving
technology, it might have a significant influence on the transportation industry (Kumari and
Bhat, 2021)

Tesla may possibly be interested in the residential energy sector. The Powerwall and Solar
Roof are two of the company's existing products in this field. Consumers have responded
positively to these items, which might be a feasible choice for people wishing to minimise
their reliance on traditional utilities. The arrival of Tesla into these new areas might have a
significant influence on the company's growth and profitability. It remains to be seen,
however, if these new markets will accept Tesla's products and services.

Tesla has emerged as one of the world's most inventive and successful automakers in recent
years. Tesla, which was founded in 2003, is best known for its premium electric automobiles.
However, the corporation has also earned a reputation for its cutting-edge battery technology,
solar roofing, and self-driving capabilities.

Looking ahead, Tesla intends to penetrate a number of additional areas. These prospective
markets offer immense promise for Tesla and have the ability to help the firm become an
even more dominating force in the automobile industry.

China is number one. China is now the world's largest market for electric cars (EVs), and it is
predicted to expand quickly in the future years. EV sales in China climbed by 72 percent in
2017 compared to 2016. This expansion is being fueled by a number of causes, including
rising worries about air pollution and a desire to encourage environmentally friendly
transportation. Tesla is already well-positioned to capitalise on this market expansion. The
business has been working hard to build a manufacturing presence in China, and production
at its new plant in Shanghai is set to begin later this year. Furthermore, Tesla intends to
launch a cheaper EV aimed exclusively for the Chinese market. This car will be smaller and
less powerful than Tesla's existing products, but it will nonetheless provide customers a
fantastic EV experience at a reduced cost (Stringham et al., 2015).

India is number two. Another huge market with tremendous potential for development in EV
sales is India. India, like China, suffers from severe levels of air pollution, prompting the
government to set lofty targets for expanding EV use. The government hopes that by 2030,
EVs would account for 15% of all car sales in India. This would be a significant rise from the
present level of about 1%. Tesla is already taking moves to capitalise on this market
opportunity. In 2016, the firm announced intentions to open an R&D facility in Bangalore
(one of India's key tech centres). This facility will assist Tesla in developing goods
exclusively for the Indian market. Furthermore, Tesla is collaborating with local partners to
establish a charging network. This would be essential in making electric vehicles a feasible
alternative for Indian customers who may have limited access to reliable power sources.

Southeast Asia is third. Southeast Asia is another market with significant EV development
potential. Indonesia, Thailand, Vietnam, and Malaysia are among the main nations in the area
with fast rising economies. In terms of air pollution and sustainability, these nations face
many of the same difficulties as China and India. As a result, there is a lot of interest in
marketing EVs as a viable alternative mode of transportation. However, EV adoption is
currently minimal, owing mostly to expensive prices. However, if prices continue to decline,
Southeast Asia might become a significant market for Tesla's goods. The firm has already
begun to expand into this area, with ambitions to construct charging stations in Singapore,
Indonesia, and Thailand.

Entry Modes
A corporation can grow its operations into new overseas markets in a variety of methods.
Each approach has its own set of dangers and benefits that must be thoroughly studied before
making a final choice. Exporting goods or services, forming a joint venture, establishing a
totally owned subsidiary, or franchising your company model are all frequent strategies of
expansion. One strategy may be more appropriate than another depending on the size and
breadth of your organisation. For example, if you are expanding into a new nation with
limited understanding of the local market or legislation, establishing a fully owned subsidiary
may be the ideal option since it gives you more control over your activities. If, on the other
hand, you are expanding into a market that is already familiar with your product or service
but lacks the infrastructure to support it (such as transportation or distribution channels),
franchising may be a better option because it allows you to tap into an existing network of
resources.

China is number one. Tesla has had its sights set on the Chinese market for some time. In
2015, the firm launched its first manufacturing outside of the United States in China.
However, Tesla's footprint in China has been limited thus far. This is due, in part, to the
expensive cost of Tesla's automobiles, which are out of reach for the majority of Chinese
customers (Stringham et al., 2015).

Tesla, on the other hand, has the potential to succeed in China's premium automobile market.
In recent years, an increasing number of rich Chinese customers have purchased luxury
automobiles as status symbols. Tesla may find a receptive audience among these purchasers
if it can pitch its automobiles as premium items.

India is number two. Another enormous potential market for Tesla is India. The country has a
population of about 1.3 billion people and is expected to increase substantially in the future
years. The middle class in India is also predicted to grow dramatically, generating a new set
of prospective clients for luxury items such as Tesla's automobiles. Tesla, on the other hand,
may have certain difficulties in accessing the Indian market. The infrastructure in the nation
is not yet evolved enough to allow broad adoption of electric vehicles. Furthermore, India has
high import duties, making it difficult for international enterprises to sell their products in the
country.

Southeast Asia is third. Southeast Asia is a critical location for Tesla's expansion goals. Over
650 million people live in the region, which has experienced strong economic expansion in
recent years. This has resulted in a burgeoning middle class with more disposable cash,
making Southeast Asia an appealing market for luxury items such as Tesla's vehicles. The
brand has already begun to reach the Southeast Asian market, with the opening of a
showroom in Hong Kong in 2016. However, if Tesla is to be successful in this market, it will
have to overcome several obstacles. Many Southeast Asian countries have limited access to
charging stations and have low levels of electric car infrastructure.

Competition & other challenges

The hurdles that Tesla will confront when attempting to enter countries such as China, India,
and South Asia are enormous. First and foremost, the corporation must build a significant
presence in these nations. This entails establishing production and assembly plants, as well as
sales and service locations. In addition, the organisation will need to establish strong ties with
local partners, suppliers, and government officials.

Tesla will also have to overcome a lot of cultural stumbling blocks. Many people in China
and India, for example, still choose to ride bicycles or motorbikes over vehicles. Convincing
people in these countries to switch to electric vehicles will be difficult. Furthermore,
infrastructure in many regions of China and India is still insufficient to handle a big number
of electric vehicles. To compete in these markets, Tesla will need to make considerable
investments in infrastructure development (Stringham et al., 2015).

Finally, Tesla will face fierce competition from established automakers already active in
China, India, and other Asian markets. Certain firms offer substantial advantages over Tesla,
including as reduced prices, greater ties with local partners, and more expertise selling cars in
these areas. If Tesla is to flourish in Asia, it will need to find a method to separate itself from
its competition.

Opportunities & benefits

The need for energy grows in lockstep with the world's population. This is especially true in
emerging nations, where economic expansion is generating a fast-rising middle class,
resulting in greater demand for energy-intensive goods and services. Tesla, Inc. is a Palo
Alto, California-based electric car and sustainable energy firm. Tesla's purpose is to speed the
world's transition to renewable energy by manufacturing electric automobiles and renewable
energy products (Mangram, 2012).
The corporation has been attempting to grow into new areas such as China, India, and South
Asia. These are significant markets with rising demand for electric automobiles and
renewable energy products. Tesla regards these markets as critical to its future growth.

Tesla is constructing a manufacturing site in Shanghai, China. The facility, which is

anticipated to be finished in 2019, will have a capacity of 500,000 automobiles per year.
Tesla intends to sell cars in China through a network of company-owned stores and galleries.

Tesla has been working on establishing a research and development facility in Bangalore,
India. The center's focus will be on creating software for self-driving cars, battery
management systems, and electric powertrains. Tesla intends to sell its automobiles in India
via a network of company-owned stores and galleries. Tesla is focusing on establishing a
Gigafactory in Sri Lanka in South Asia. The plant will produce batteries and other
components for Tesla's electric vehicles. Tesla intends to sell automobiles in South Asia via a
network of company-owned stores and galleries.

Tesla will benefit from its growth into these new areas in a variety of ways. For starters, it
will provide the corporation with a wider consumer base. Second, it will enable Tesla to enter
new markets for its goods and services. Third, it will allow Tesla to strengthen its position in
important markets for electric vehicles and renewable energy products.

Tesla places a premium on the Chinese market. With over 1.1 million electric car sales in
2017, China is the world's largest market for electric vehicles. The Chinese government has
also been supportive of the electric car sector, enacting a variety of regulations and measures
to encourage the use of electric vehicles (Shin and Choi, 2020).

Tesla's growth into India and South Asia will be advantageous to the corporation as well.
These are significant markets with rising demand for electric automobiles and renewable
energy products. Tesla will be able to acquire a greater part of the market and develop its
company by having a presence in these markets.
Recommendations
Tesla will need to build a marketing plan adapted to the particular demands and desires of
each local market in order to effectively penetrate new markets. There are a few crucial
guidelines that should be considered while approaching China, India, and South Asia in order
to achieve success.

To begin, it is critical to recognize that the Chinese automobile market is vastly different
from that of the United States. Luxury automobiles are frequently viewed as status symbols
in China; thus, Tesla will need to work on portraying its vehicles as high-end and luxurious
items. Furthermore, the Chinese market is very competitive, so Tesla will need to ensure that
its vehicles stand out from the competitors in terms of performance. Meanwhile, in India, fuel
efficiency is a big priority for automobile purchasers (Liao et al., 2019). As a result, in order
to appeal to Indian consumers, Tesla will need to ensure that its vehicles get outstanding
mileage. Furthermore, India has a big population of price-sensitive potential customers, so
Tesla will need to sell its cars at a competitive price point in order to be successful in this
market.

Finally, while approaching South Asia, keep in mind that many buyers in this region are
seeking for tiny and inexpensive automobiles. As a result, if Tesla wants to be successful in
South Asia, it will need to offer smaller and more cheap vehicles. Furthermore, South Asia is
home to a large number of emerging countries.

Conclusion
It can be concluded that in recent years, Tesla has risen as one of the world's most innovative
and successful automakers. However, Tesla is a small company in contrast to its competitors,
and it faces various challenges as it strives to grow its business. Here we discussed potential
markets for Tesla to explore and the best strategy for the company to enter them. Tesla may
reach regions like as China, India, and South Asia through joint ventures, licencing, or
franchising. These are all entrance modes that other organisations in these locations have
utilised successfully. A greenfield investment can also be used by Tesla. This would
necessitate a significant investment, but it would provide the organisation with complete
control over its activities. The key to Tesla's success in these locations will be to tailor its
goods and marketing to local cultures and tastes.
References
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Kumari, D. and Bhat, S., 2021. Application of Artificial Intelligence Technology in Tesla-A
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Liao, F., Molin, E., Timmermans, H. and van Wee, B., 2019. Consumer preferences for
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Mangram, M.E., 2012. The globalization of Tesla Motors: a strategic marketing plan
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Shin, J. and Choi, J.W., 2020. Opportunities and reality of aqueous rechargeable batteries.
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