How Elon Musk Is Taking Tesla Global | WSJ

Summary

The script details Tesla's journey from its first Roadster release in 2008 to its global expansion efforts today. It discusses Tesla's challenges and strategies, including opening new factories in Texas, Nevada, California, and potentially Russia, as well as the upcoming Berlin plant. The video also touches on regulatory hurdles, cultural adaptation in China, and the company's response to criticism, highlighting CEO Elon Musk's hands-on approach and the need for local management to navigate complex global markets.

Takeaways

• 🚗 Tesla's first car, the Roadster, was released in 2008 and marked the beginning of their journey in the electric vehicle (EV) market.
• 🌏 Tesla cars are now found worldwide, with the company establishing a global presence over the past 13 years.
• 🏭 Tesla is not only expanding its sales but also setting up manufacturing facilities globally to meet the growing demand for EVs.
• 📈 The EV market is expected to surge significantly, with projections estimating a 775% increase by 2030, indicating the importance of Tesla's global expansion.
• 🇨🇳 Despite facing challenges and bad publicity in China, Tesla is still striving to maintain its growth in one of its most significant markets.
• 🌟 Elon Musk aims to leverage Tesla's first-mover advantage in the EV industry to retain its leading position.
• 📢 Musk's speeches reveal Tesla's strategy to increase its vehicle presence worldwide, including potential expansion into Russia.
• 🇷🇺 The hint of a new Tesla factory in Russia came as a surprise, considering the company's limited sales in the country, but it aligns with Tesla's strategy to tap into new markets with potential.
• 🏗️ Tesla's new plant near Berlin is expected to open in early 2022, allowing the company to serve the European market more directly and efficiently.
• 🤔 There is speculation about Tesla's next move, with some analysts suggesting a focus on BRIC countries, including Russia, which saw a 95% growth in the EV market last year.
• 🛠 Building factories in new countries presents significant logistical challenges, especially for a hands-on CEO like Elon Musk, who prefers to be on the factory floor.

Q & A

What was the first car Tesla released and when was it launched?

The first car Tesla released was the Roadster, which was launched in 2008.

What is Tesla's strategy for global expansion according to the script?

Tesla's strategy for global expansion includes selling cars abroad and setting up factories around the world, with a focus on quickly expanding manufacturing capacity.

How does the script describe the potential growth of the EV market by 2030?

The script suggests that the EV market is expected to surge by 775%, reaching about 35 million cars by 2030.

What challenges did Tesla face in China as mentioned in the script?

Tesla faced a setback in China due to a series of bad publicity incidents, which led to a drop in sales in April, and there were concerns about the company's ability to maintain rapid growth in this key market.

What is the significance of the factory Tesla is planning near Berlin?

The new plant near Berlin is significant as it is expected to produce half a million cars a year, allowing Tesla to sell vehicles directly to European countries instead of importing them from China and the US.

What is the current situation of Tesla's presence in Russia according to the script?

Tesla has not sold many cars in Russia, with only around 700 vehicles on the roads. However, the company hinted at future plans for a new factory in Russia during a speech by Elon Musk.

How does Elon Musk approach working with his engineers according to the script?

Elon Musk prefers to work closely with his engineers on the factory floor rather than spending too much time in conference rooms, as he believes this is essential for creating good products.

What are the challenges Tesla faces in ramping up production compared to traditional automakers?

Tesla faces challenges in ramping up production due to building many parts like battery packs in-house and developing much of the software, which makes it harder to scale production compared to traditional automakers that are converting existing plants into EV plants.

What is the potential solution for Tesla if it fails to scale production quickly enough?

If Tesla fails to scale production quickly, it may need to think more like a traditional automaker, either by building its own factories or potentially relying on contract manufacturers like Foxconn.

How does the script describe Elon Musk's approach to working in China?

Elon Musk has taken a conciliatory approach in China, praising the Chinese system and government officials, which has contributed to Tesla's success there, including the quick construction of the Shanghai factory.

What issues is the Berlin plant facing according to the script?

The Berlin plant is facing a six-month delay due to issues such as German bureaucracy, environmental concerns over water usage and the plant's impact on local wildlife, and Tesla's own lack of coordination.