Markets

Should Tesla Motors Shareholders Worry About Weak Demand in China?

Tesla Motors ' outspoken CEO, Elon Musk, has never been shy about the importance of the Chinese market to the electric-car maker's long-term success. The California-based company delivered its first Model S cars in China last April. At the time, Tesla's management was confident that China would become one of its largest markets within just a few years.

Source: Tesla Motors.

Tesla's decision to invest hundreds of millions of dollars into charging infrastructure in China should help incentivize Chinese drivers to buy Tesla cars down the road. China may represent a tiny percentage of Tesla Motors' sales right now, but investors should give the company more time to gain a footing in the foreign market before sounding the alarm. After all, Tesla's newly opened Shenzhen location in China is now one of the company's highest-grossing stores worldwide.

The bottom line here is that China is not yet a significant market for Tesla, but that doesn't mean the U.S. carmaker can't thrive in the region down the road. Shareholders should certainly keep an eye on Tesla's operations in China going forward, but at this point, it is too early to worry.

1 great stock to buy for 2015 and beyond

2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .

The article Should Tesla Motors Shareholders Worry About Weak Demand in China? originally appeared on Fool.com.

Tamara Rutter owns shares of Tesla Motors. The Motley Fool recommends and owns shares of Tesla Motors. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

TSLA

Other Topics

Stocks

Latest Markets Videos

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More