Tesla Motors Inc (TSLA) Facing Car Charger Installation Challenges in China

Tesla Motor (TSLA)

Tesla Motors Inc (NASDAQ:TSLA) is focused on expanding its electric car market in China. However, the luxurious car maker is facing a huge challenge of getting the public and authorities to accept the chargers. The electric cars need to be charged to move, but getting adequate individual owned garages to install the chargers has been a huge challenge since most of the people live in shared apartments.

Unlike the U.S. where there are many individuals owned low-rise homes, china has up to 74% of the population housed in high-rise multi-family residences. Most people therefore park their cars in shared garages, making it difficult to find general acceptance of the chargers.

Tesla Motor (TSLA)

Shawn Gao, the person Tesla Motors Inc (NASDAQ:TSLA) has mandated with overseeing the installations in China has said that the biggest issue is actually getting property managers to accept the installation of the chargers.

“The technical part is not the big issue. Getting approval from property-management companies is,” said Gao.

Some residents fear that having Tesla Motors Inc (NASDAQ:TSLA) chargers installed within the property has the potential of causing power surges or significantly increasing their electricity bills.

Tesla Motors Inc (NASDAQ:TSLA) is facing a huge hurdle because, without the necessary charging infrastructure, electric vehicles won’t sell. Electric car sales has been on the low, registering only 70,000, way below Tesla Motors Inc (NASDAQ:TSLA) target of 500,000 by the end of the year.

Reports indicate that some people who ordered Tesla Motors Inc (NASDAQ:TSLA) new Model S cars have been frustrated by the lack of electric car charging infrastructure, a factor that makes it difficult for them to enjoy the full potential of their cars.

Tesla Motors Inc (NASDAQ:TSLA) is partnering with China Unicom, a telecommunications provider to build 20 superchargers and 400 charging posts in 120 cities in a bid to fast set the groundwork for more electric car sales. Tesla Motors Inc is also working together with Soho China Ltd and other property developers to install such chargers during the construction stage.

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