TESLA NEEDS CHINA’S NEW ENERGY VEHICLE MARKET TO HIT THE NUMBERS It is safe to say that Tesla needs China, more than China needs Tesla. China is the world’s largest auto market and consumer demand and government support for new energy vehicles continuing to grow. Tesla’s CEO, Elon Musk recently stated that without manufacturing in China, Tesla won’t be able to produce 10,000 Model 3 electric sedans per week, which has been the company’s goal for years and will not be able to deliver an eagerly awaited base model to consumers in the U.S. at a price of $35,000 unless the company can tap into the market in China. However, this is easier said than done even for Tesla as like other U.S. automakers the company faces considerable competition in China as the country produced half of all global electric vehicles last year, where as only about twenty percent were produced in the U.S. This focus on new energy vehicles has China’s auto manufacturers clearly ahead in terms of size, pro- duction and scale with companies like; NIO, BYD, SAIC Motorm Geely Automotive Group and Beijing Electric Vehicle Co already up and running and a list that includes Byton and WM Motor Tech that are on the rise in China benefiting from $60 billion worth of government subsidies and incentives since 2012, designed to make new energy vehicles affordable for drivers in that country, something that Tesla’s Model S will not be at around $140,000 in China after taxes. FOOT LOCKER GAINS DIGITAL EXPERTISE INVESTMENT IN GOAT GROUP
Foot Locker partnership with Goat, see the retailer investing $100 million in new start up Goat Group’s online sneaker resell platform. The partnership with Goat, which was seen as a threat to the footwear industry, marries the leading sportswear retailer with the largest sec- ondary marketplace for authentic sneakers. Foot Locker, which has a market cap of $6.4 billion and runs more than 3,000 brick-and-mortar stores across the globe, is looking to leverage technolo- gy to improve the customer experience and target younger shoppers while the move gives Goat the opportunity to build an in-store presence and greater exposure for the company.
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FEBRUARY 2019 • SPOTLIGHT ON BUSINESS MAGAZINE
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